Accounting Services

RELOCATION/MOVING EXPENSE PROCEDURE
Effective:  1/1/94
Revised:  11/30/2011
Revised:  9/24/2015
Related Policy
 

General Information

A new employee may be required to register as a vendor with the University if they require reimbursement of relocation expenses prior to their official start date as an employee of the University. Register here using the link for Refund or Reimbursement and they should select that they are NOT a University employee when prompted.

To be reimbursed for moving expenses, the principal place of work must be 50 miles farther from the former residence than your old main job location.

The employee reimbursement voucher or Special Pay document must be payable to the employee, supported with adequate documentation and approved by the budget center official. Reimbursement is usually made to the employee.

If an exception to reimbursement has been approved a payment is made directly to a supplier (i.e. moving company, rental agency, storage facility, etc…), Procurement rules and dollar limits apply.  Payments from $2500-$10,000 require two additional price references or quotes.  Payment that will exceed $10,000 will need to be competitively bid contracts.  Any contract related to relocation will be between the employee and the supplier and the University will have no responsibility or liability other than to make the payment.  The University will not serve as an intermediary or agent of the employee if goods are lost, damaged, or other service issues result from the contract.  It is due to these complexities that the preference is for reimbursement.

The employee’s first and last names should be placed in the internal notes section of the form via buyWays paid directly to the vendor.

Prior approval of an employment offer approved at the Administrative Council member level, which states relocation reimbursement amounts when attached to a payment request, should be included with any supporting documentation when entering a voucher or payment request.

University employee travel limits apply for mileage and meal reimbursement.

Nontaxable Expenses

A voucher is required to reimburse an employee for nontaxable relocation expenses. Account 7007 is to be used for nontaxable relocation expenses. Nontaxable relocation expenses include:

  • Moving household goods or personal effects from former residence to the new residence (i.e. van or truck rental costs for moving, tape/boxes)
  • Cost of storage and insuring household goods and personal effects within any period of 30 consecutive days after the day things are moved from the former home and before they are delivered to the new home
  • Travel expenses (excluding meals) while moving from the former residence
  • IRS approved mileage reimbursement for moving a personal car (one trip per car)

Taxable Expenses

Reimbursement for taxable relocation expenses may be accomplished in one of the following manners:

  • Employees already in the CUBS payroll system are paid via a Special Pay through the payroll system.
  • Employees not yet entered into the CUBS payroll system are paid via a Payment Request Form (buyways) Procurement Services provides Payroll the expenses reported in account 7008 for inclusion in the employee's W-2 wage report.

Account 7008 is to be used for taxable relocation expenses. Taxable relocation expenses include:

  • Cost of meals consumed while traveling during the move
  • Cost of storage and insuring household goods and personal effects exceeding any period of 30 consecutive days after the day things are moved from the former home and before they are delivered to the new home
  • Temporary lodging, utilities, rent or storage
  • House hunting expenses
  • Mileage reimbursement in excess of the nontaxable mileage allowance