mark kent. policy background eligibility relocation package payment/reimbursement guidelines ...
TRANSCRIPT
Relocation & Moving Expenses
Mark Kent
Policy Background Eligibility Relocation Package Payment/Reimbursement Guidelines Common Mistakes Adequate Documentation Year-End Reporting Resources
Agenda/Topics To Be Covered
Board of Regents (BOR) - September 2007
University of Georgia - February 2008
BOR policy added to BPM – July 2008
Policy Background
Resource FAPP
◦ Controller’s Division◦ Relocation and Moving Expenses
http://www.policies.uga.edu/FA/nodes/view/1051/
This link includes:PolicyProcedureForms and DocumentsFrequently Asked QuestionsHelpful Tips
IRS Publication 521http://www.irs.gov/publications/p521/ix01.html
Move related to start of work◦ Within one year after report to work unless extenuating
circumstances
Time◦ work full-time in the area of the new workplace for at least
39 weeks during the 12 months immediately after the move◦ Academic payroll : full-time equals Fall and Spring semesters
(one academic year)
Distance ◦ new work >50 miles farther from former home than the old
workplace
Eligibility
Professor X worked 25 miles from his old home. The former home is 225 miles from the new work place.
1. Enter the number of miles from your old home to your new workplace: 225 miles
2. Enter the number of miles from your old home to your old workplace: 25 miles
3. Subtract line 2 from line 1: 200 miles (If zero or less, enter -0-)
Is line 3 at least 50 miles?
□ Yes. You meet this test.□ No. You do not meet this test. You cannot deduct your moving expenses.
Distance Test - Example
Original offer letter◦ Must contain formal, specific amount for relocation◦ Post-offer negotiated amounts will be considered a
violation of the Gratuities clause of the Constitution of the State of Georgia
Full-time salaried position◦ 1 year
Eligibility - Additional Guidelines
Original with specific amount for relocation and/or house hunting
Show acceptance by new employee with an original signature and date of signature
Moving agreement should be sent at the same time as offer letter to be signed
Date of letter and acceptance must be PRIOR to any expenses related to relocation
Lab and office must be listed as separate amount
Offer Letter
1. Letter of Offer◦ Specific dollar amount for relocation in original offer
2. Relocation and Moving Expense Agreement◦ Must be signed by employee, department head, and
Dean/Vice President◦ If $15,000 or more – must be signed by Senior VP
3. Relocation Expense Authority (REA)◦ Contains pre-printed control number for tracking payments◦ Funding source/authorization of funds
**No expenses may be incurred prior to the signature dates of the offer letter and relocation agreement **
Relocation “Package”
Departmental funds must be approved by Department Head with budgetary responsibility for the State Account,
UGA Foundation funds and Arch Foundation funds must be approved by the appropriate Dean or Vice-President as required by the respective fund agreement and then sent to the External Affairs Office of Financial Services for approval.
UGA Research Foundation funds must be approved by the Office of the Vice President for Research Director of Fiscal Affairs.
Funds provided through the Office of the Senior Vice President for Academic Affairs must be approved by the Provost.
Grant funds must be approved by the project’s Principal Investigator (PI), the Department Head, and the Contracts & Grants department.
Allowable Funding Sources
Relocation Package to encumber funds
Pink Check Request ONLY◦ E-check request will be rejected
Request for Reimbursement of Relocation Expenses form
Payment/Reimbursement Guidelines
Non-taxable Expenses◦ Processed through Accounts Payable◦ Encumbrance will automatically be reduced
Taxable Expenses◦ Processed through Payroll
Email will be sent with taxable amount to department
Department will complete monthly personnel◦ Encumbrance will be manually reduced◦ Amount will be on monthly paycheck with federal,
state, and FICA taxes withheld.
Payment/Reimbursement Guidelines
Travel & Lodging:◦ one (1) trip per household member◦ Travel begins day that family leaves former
home to day of arrival at new home ◦ shortest, most direct route available by
conventional transportation
1. Airfare (coach only)2. Lodging (per diem limit)3. Mileage or fuel4. Rental Car 5. Tolls, taxis, shuttle, etc…
Qualified (Non-Taxable) Expenses
Transporting Household Goods: Common Carrier
Less than $25000 Direct bill Less than $10,000 – recommended that quote is obtained before
services rendered $10,000 - $$24,999 – Three quotes are preferred from moving
companies prior to services rendered
Everify for Payments over $2500 http://www.busfin.uga.edu/procurement/PDF/EVerifyForm.pdf
Greater than $25000 Must be contracted for through the Procurement Office. It is
recommended that you contact the Procurement Office prior to submitting a purchase requisition in UGAmart for the expenditure.
***The University of Georgia presently does not have contracts with any 3rd party moving companies***
Qualified (Non-Taxable) Expenses
Transporting Household Goods (cont):
Self-Movea. Vehicle Rental & Accessories*b. Fuel/Oilc. Labor (up to $500)d. Temporary Storage (up to 30 days)
*Accessories that are purchased and become the personal property of the employee are not reimbursable
Qualified (Non-Taxable) Expenses
Effective January 1, 2013: .235 per mile driven for moving purposes is non taxable .325 per mile driven for moving purposes is taxable
Example:Professor X and his family drive the family car 500 miles from the former home to the new home.
Nontaxable Amount:500 miles * $0.235 = $117.50
Taxable Amount: 500 miles * $0.325 = $182.50
Mileage – IRS Guidelines
Pre-Move Travel/House hunting trips:a. Airfare (coach only)b. Lodging (per diem limit)c. Mileage or fuel d. Rental Car e. Tolls, taxis, shuttle, etc…f. Meals (per diem limits)
Note : pre-move trips are limited to 5 days
Non-Qualified (Taxable) Expenses
Temporary Living Quarters (up to 6 months)
Temporary Storage (over 30 days)
Meals during final move (per diem limits)
Other Charges
Non-Qualified (Taxable) Expenses (cont.)
Original documents/receipts required
Credit card statements may serve as supporting documentation but are not acceptable as the primary document
Documents should contain the following:◦ Name of payee◦ Date◦ Amount◦ Details of purchase/expense◦ Amount Paid
Adequate Documentation
Moving Company◦ Bill of lading; detailed receipt◦ Proof of payment i.e. cancelled check or credit card statement
Airfare ◦ airline ticket “receipt” coupon and/or equivalent printed receipt for
e-tickets; boarding pass
Mileage◦ MapQuest or odometer reading
Lodging ◦ itemized hotel bill
Meals ◦ detailed receipt unless claiming per diem◦ identify number of household members traveling ◦ Alcohol is not permitted on institutional funds
Adequate Documentation
Vehicle Rental◦ Rental agreement; detailed receipt
Temporary Living◦ original hotel bill or short-term lease agreement
for temporary lodging and proof of payment◦ brief explanation stating the purpose for
temporary living
Auto fuel and oil◦ original receipts for fuel and/or oil◦ Fuel and oil expenses are not reimbursable if the
employee is claiming reimbursement for mileage
Adequate Documentation
Labor◦ receipt from the business employed to provide
labor including: Signature tax identification number (individual) amount paid
◦ maximum total payment of $500 ◦ labor provided by the employee or the
employee’s immediate family member(s) is not reimbursable
Adequate Documentation
Incomplete relocation package
Missing signatures
Original Offer letter does not contain a specific dollar amount for relocation
Expenses incurred prior to signing offer letter and moving agreement
Inadequate documentation
Receipts not submitted within 60 days after incurred or paid
Expenses for members other than for those in the household i.e. airfare or meals for friend helping move
Common Mistakes
Relocation expenses that are paid via payroll will be reported on the employee’s W-2 as part of Federal and State wages.
Relocation expenses that are paid via accounts payable will be reported on the employee’s W-2 in box 12
Year-End Reporting
Questions & Answers
Contact Information: Mark Kent ([email protected])
Andre Simmons ([email protected])