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Effective 1/1/2018, all moving expenses paid by an Employer are taxable and are required to be included as taxable income on the employee’s W-2. This includes all moving reimbursements and payments made directly to third party vendors. This change was a part of the Tax Cuts and Jobs Act, a new tax law, which went into effect in early 2018.
Title: Relocation Expenses
Subject: Accounts Payable
Policy No: FIN: 2014:04
Applies: University-wide
Issuing Authority: President
Responsible Officer: Senior Vice President for Finance and CFO
Adopted: 10/2003
Last Revision: 11/
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16/
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2020
Last Reviewed: 11/
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16/
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2020
I. PURPOSE
This policy sets forth the procedures, guidelines and limitations for reimbursement of reasonable, necessary and appropriate relocation expenses incurred by eligible new employees.
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Attachment 1 - Reimbursable Expenses
- Attachment 2 – Non Reimbursable expenses
- Attachment 3 - Reimbursement Procedures
Attachment 1
Reimbursable Expenses
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Attachment 2
Non-Reimbursable Expenses
- Expenses not reimbursable by the University include but are not limited to:
- Additional insurance coverage over and above that normally is provided by commercial moving companies
- Air phone usage
- Airfare seating: main cabin extra, preferred seating or early bird check in
- Airline or VIP club membership dues or one-day admission fees
- Alcoholic refreshments
- Any subsequent moves from temporary to permanent housing
- Car repairs/routine maintenance or locksmith charges
- Cost related to immigration
- Credit card delinquency fees/finance charges/annual fees
- Expenses incurred by persons not considered to be dependents
- Expenses related to vacation or personal days taken before, during, or after a pre-move/relocation
- Home improvements to help sell your home
- Loss on the sale of your home
- Losses from disposing of memberships in clubs
- Loss of security deposits
- Loss or theft of cash advance money or airline tickets
- Loss or theft of personal funds or property
- Lost baggage, luggage, briefcases or baggage insurance
- Meals and travel costs incurred by laborers
- Medical expenses while traveling
- Moving household effects from an address other than the home address
- Parking or traffic violations
- Personal accident or property insurance
- Personal, recreational entertainment of any kind or other entertainment
- Postage cost for realty and mortgage documents
- Real estate taxes
- Refitting of carpet and draperies
- Repairs to personal or rental vehicles
- Souvenirs or personal gifts
- Storage (excluding 30 days in transit)
- Travel and lodging costs incurred during additional trips from the prior residence to the new residence
- Trip cancellation insurance
- Utility and telephone installation charges
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Employee responsibilities
- Agrees to maintain accurate records of all expenses incurred in connection with such relocation.
- Complete all sections of the Relocation Expense Form.
- Submit original itemized receipts with the request attached to a Relocation Expense Form.
- Include a copy of the Appointment Letter.
- Make copies for your records (these records will be useful for purposes of filing individual tax returns).
- Submitting individual expenses on multiple relocation forms will delay the reimbursement process.
- Employee unit responsibilities
- Review relocation documentation for appropriate signature and compliance with University policy and IRS Requirements.
- If reimbursement of relocation expenses will be made using grant funding, the original documents, including the Letter of Appointment, should be forwarded to the Office of Sponsored Programs for processing.
- Forward original documents for all other relocation expenses, including a copy of the Letter of Appointment, to the Accounts Payable Office.
- Office of the Senior Vice President for Finance and CFO Responsibilities
- Calculate tax-reporting requirements on the Relocation Expense Form.
- Issue the reimbursement payment within ten business days.
- Report all relocation expenses on the annual W-2 Form.
- Retain documentation for audit purposes.
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