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ROWAN UNIVERSITY POLICY

Important Announcement:

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 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: Payroll
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:

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11/

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29/

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2022
Last Reviewed: 

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11/

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29/

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2022

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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1. Reimbursable expenses that are subject to tax withholding include the following:
   1. Commercial moving company;
   2. Charges for packing, crating, mailing and/or shipping household goods; and other miscellaneous packing supplies;
   3. Rental truck;
   4. In-transit storage for up to 30 consecutive days;
   5. Travel and lodging cost for one trip from the prior residence to the new residence, which may include:
      1. Lodging in transit;
      2. Airfare (coach class only);
      3. Rental car (economy only);
      4. In accordance with IRS regulations, the standard mileage rate for using your vehicle to move to a new home may vary per year; and
      5. Tolls and parking.
2. House hunting expenses (one trip, not to exceed 5 days) are reimbursable expenses and are taxable income to the individual.
3. Reimbursable Expenses
   1. Expenses associated with the transportation of household goods and personal effects from the new employee’s former residence to the new residence are reimbursable.  This includes costs of packing, shipping and unloading, but not "unpacking" services.
   2. Expenses of traveling from the employee’s former residence to the new residence are reimbursable as moving expenses and should be by the shortest, most direct route available by conventional transportation.
   3. The actual costs of transportation and lodging incurred in route are reimbursable.  
      Mileage rates will be made based on the IRS guidelines.  Travel expenses are limited to one trip per family member.
   4. Original Receipts must be obtained for all expenditures and submitted with a Relocation Expense Form.  Please note, without original receipts, you will not be reimbursed for expenses.

Attachment 2

Non-Reimbursable Expenses

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1. Expenses not reimbursable by the University include but are not limited to:
   1. Additional insurance coverage over and above that normally is provided by commercial moving companies
   2. Air phone usage
   3. Airfare seating: main cabin extra, preferred seating or early bird check in
   4. Airline or VIP club membership dues or one-day admission fees
   5. Alcoholic refreshments
   6. Any subsequent moves from temporary to permanent housing
   7. Cash tips
   8. Car repairs/routine maintenance or locksmith charges
   9. Cost related to immigration
   10. Credit card delinquency fees/finance charges/annual fees
   11. Expenses incurred by persons not considered to be dependents
   12. Expenses related to vacation or personal days taken before, during, or after a pre-move/relocation
   13. Home improvements to help sell your home
   14. Loss on the sale of your home
   15. Losses from disposing of memberships in clubs
   16. Loss of security deposits
   17. Loss or theft of cash advance money or airline tickets
   18. Loss or theft of personal funds or property
   19. Lost baggage, luggage, briefcases or baggage insurance
   20. Meals and travel costs incurred by laborers
   21. Medical expenses while traveling
   22. Mileage for a car driven that is not the employee's or household members'
   23. Moving household effects from an address other than the home address
   24. Payments made using CashApp, Venmo, Zelle, ApplePay, etc.
   25. Parking or traffic violations
   26. Personal accident or property insurance
   27. Personal, recreational entertainment of any kind or other entertainment
   28. Postage cost for realty and mortgage documents
   29. Real estate taxes
   30. Realtor fees, commission, etc.
   31. Refitting of carpet and draperies
   32. Repairs to personal or rental vehicles
   33. State of New Jersey sales tax made on purchases including, but not limited to, meals and lodging
   34. Souvenirs or personal gifts
   35. Storage (excluding 30 days in transit)
   36. Travel and lodging costs incurred during additional trips from the prior residence to the new residence
   37. Trip cancellation insurance
   38. Utility and telephone installation charges

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1. Employee responsibilities
   1. Agrees to maintain accurate records of all expenses incurred in connection with such relocation.
   2. Complete all sections of the Relocation Expense Form
   3. Submit original itemized receipts with the request attached to a Relocation Expense Form.  If original receipts are not received, the employee will not be reimbursed for those items.
   4. Include a copy of the Appointment Letter.
   5. Make copies for your records (these records will be useful for purposes of filing individual tax returns).
   6. Submitting individual expenses on multiple relocation forms will delay the reimbursement process.
2. Employing unit responsibilities
   1. Review relocation documentation for appropriate signature and compliance with University policy and IRS Requirements.
   2. 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.
   3. Forward original documents for all other relocation expenses, including a copy of the Letter of Appointment, to the Provost Office who will forward to the Payroll Office.
3. Office of the Senior Vice President for Finance and CFO responsibilities
   1. Calculate tax-reporting requirements on the Relocation Expense Form.
   2. Issue the reimbursement payment within ten business days.
   3. Report all relocation expenses on the annual W-2 Form.
   4. Retain documentation for audit purposes.

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