![]() Moves of $5,000 or more require that three quotes be obtained and submitted to the University prior to payment or reimbursement to ensure the lowest bid selection. Invoices from third-party commercial movers may be paid directly to the moving company by the University. Moving expenses will be paid on a reimbursement basis upon receipt of adequate documentation. The employee should also be given a copy of this policy at the time of hire in order to provide the employee with information regarding the procedures for reimbursement and the potential tax implications. Noncompliance with these conditions will result in the entire amount of the moving expense allowance being considered taxable income." Any reimbursement of funds must be substantiated by original receipts and be submitted for reimbursement within 60 days of incurring the expenses. To minimize these consequences, the funds should be utilized primarily to cover expenses associated with moving from your former primary residence to a new primary residence. "The reimbursement of moving expenses may have tax consequences. The hiring letter to the employee should include the following language: The amount of this allowance should be noted on the Personnel Action Request (PAR) form submitted to the Business Office. To make this determination, the University follows IRS guidelines as outlined in IRS Publication 521.Ĭommunications regarding Moving Expense Reimbursement Allowance Departments should notify the Human Resource department that a moving reimbursement allowance has been included as a part of the employment offer. Reimbursements that meet the criteria of the accountable plan will be reviewed by the Business Office to determine which expense reimbursements are taxable and which are non-taxable to the employee. Moving expense reimbursements that do not meet these criteria will be taxable to the employee. In addition, employees must adequately account for expenses and request reimbursement within 60 days after such expenses ane incurred. Support for moving expenses meets this condition. ![]() Such a plan requires that there be a business connection for expense reimbursements to employees. Time: IRS regulations state that unless the employee works full-time at least thirty nine (39) weeks during the first twelve (12) months after relocating, then all moving and relocation payments/reimbursements will be considered taxable income.įor further information regarding these conditions, please see IRS Publication 521.Īccountable Plan Criteria The University has an accountable plan as defined by IRS guidelines.(See IRS Publication 521 for further details.) Distance: The distance between the employee's new work location and the former residence must be at least fifty (50) miles greater than the distance between the employee's old work location and the former residence.For all other employees, one year is defined as twelve months. For faculty appointed on an academic year basis, one year is defined as two concurrent regular academic sessions of fall and spring or spring and fall semesters equal to nine months. Full-time position: The employee must be assigned to a full-time, salaried position and must have agreed to work on a full-time basis for at least one year.The IRS requires that certain criteria be met in order for any eligible moving expense reimbursements to be considered qualified (non-taxable). The following outlines employee eligibility criteria as well as the conditions necessary for moving expense reimbursement under the University's plan. Decisions related to moving expense reimbursement should be made by the time an employment offer is finalized. Moving expense reimbursement support is made available to eligible employees based upon budget avallability. The communication form utilized by the Human Resource department to communicate changes regarding personnel to the various University departments (see policy for examples of qualified moving expenses.) (See policy for examples of nonqualified moving expenses.)Įxpenses reimbursed to the employee that the IRS deems non-taxable and have no tax consequences for employee. Definitions: TermĮxpenditures for transporting the employee, members of employee's household, houshold goals and personal effects from the former residence to the new residenceĮxpenses reimbursed that the IRS deems to be taxable and included as part of the employee's taxable wages. The purpose of this policy is to outline the guidelines to be followed related to moving expense reimbursements for new faculty and staff. Responsible Office: Business Office Applies to: (examples Faculty,Staff, Students, etc) Name: Relocation and Moving Expense Policy -Interim
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