MOVING/RELOCATION EXPENSE REIMBURSEMENT. Presented by: Tax Department

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1 MOVING/RELOCATION EXPENSE REIMBURSEMENT Presented by: Tax Department

2 Moving/Relocation Expenses Reimbursement Policy Overview Out-of-pocket moving expenses for house-hunting, temporary quarters and storage, and the cost of transporting personal effects for the new UH employee and members of their household to a new home should be reimbursed in the Concur Travel Management System. Refer to the Concur training on the Finance website: Per MAPP Policy , Moving and Relocation Expenses, requests for reimbursement with appropriate documentation, must be submitted to the department no more than 60 days after the expense was incurred. Any request for reimbursement submitted after 60 days will be noted on the Concur Expense Report and the reimbursement will be considered taxable income to the new employee. Some moving expenses are considered taxable income regardless.

3 Arrangements with Payments of Moving Companies Upon receipt of the letter of acceptance of employment from the new employee, the responsible departmental or college/division administrator shall provide to the employee a copy of MAPP with specific information on University contracts with moving companies (Purchasing can provide a list of movers). The employee may contract directly with a self-service or fullservice moving company or request the responsible University department issue a PO to the moving company and pay with a PO voucher. The employee will be responsible for paying any amount that exceeds authorized moving expenses. If the new employee seeks reimbursement for out-of-pocket moving expenses, receipts must be provided to the responsible department. Requests for reimbursement, with appropriate documentation, should be made no more than 60 days after the expense has been incurred.

4 Required Moving and Relocation Documents in Concur Travel Request 1. Offer letter showing the allowance for moving expenses Expense Report 1. Authorization for Moving and Relocation Expenses (Addendum A) 2. Moving Expense Reimbursement Template 3. Itemized receipts (including meals while moving); use Google Maps in Concur to document mileage 4. Taxable Payments or Reimbursements to Employees Form (Exhibit B), if any payments are taxable

5 Creating a Concur Travel Request for Moving Expenses Request Header

6 Concur Travel Request Request Header Continued

7 Concur Travel Request Request Header Continued Complete the remaining fields on the Request Header and click Save. You will be taken to the Segments tab.

8 Concur Travel Request - Segments Enter the moving expense allowance by clicking the Incidentals/Other icon.

9 Concur Travel Request - Attachments Attach the new employee s offer letter, which should show that moving expenses will be paid/reimbursed up to a certain dollar amount.

10 Concur Travel Request Approval Flow

11 Creating a Concur Expense Report for Moving In the Concur main page, click on Authorization Requests in the header or in the My Tasks section. Then look for a Travel Request for which you will be creating an Expense Report. The Travel Request must be fully approved before you create an Expense Report.

12 Concur Expense Report Continued

13 Concur Expense Report Header On the Expense Report Header, change the Primary Purpose of Travel, if needed. Househunting expenses should be selected if ALL expenses for that Report are for househunting. Moving expenses (not househunting) should be selected if ALL expenses for that report are for the actual move of the employee, household members, and household items. Create two Expense Reports from the same Travel Request if both househunting and actual move expenses will be reimbursed, one for househunting and one for the actual moving expenses.

14 Concur Expense Report Header Continued Complete the following additional fields on the Expense Report Header. The answers below are only examples. Answer the questions correctly for each Expense Report.

15 Concur Expense Report Continued Click Next at the bottom of the Report Header page. Click Cancel on the Travel Allowance page (which is only used for state funds) to skip this page. Moving expenses are paid with local funds only. Select the appropriate Expense Types under Moving Expense. See next slide. If Househunting is the primary purpose, all expenses will be coded as househunting. If Moving expense (not househunting is the primary purpose, expenses will be coded as actual moving expenses in various expense accounts.

16 Expense Types Once you click on the expense type, the appropriate account code associated with that expense type will be populated on the Expense Report. For more information, refer to the Creating an Expense Report from a Travel Request posted on the Finance website under Finance Departments Accounts Payable (Travel)

17 Concur Expense Report Continued Attach required documents to Expense Report 1. Authorization for Moving and Relocation Expenses (Addendum A) 2. Moving Expense Reimbursement Template 3. Itemized receipts (including meals while moving); use Google Maps in Concur to document mileage 4. Taxable Payments or Reimbursements to Employees Form (Exhibit B), if any payments are taxable Submit Expense Report into workflow

18 Moving Expense Template Sample (Found in the Tax Website: Total voucher gross amount cannot exceed reimbursement allowance. Note: Refer to the Template with the most current IRS Mileage Rates (in Tax website) for the specific year.

19 Moving and Relocation Accounts (Refer to MAPP ) House-hunting Travel (taxable non-direct expense) - Prospective and new employee travel expenses while house hunting. Cost of one trip of up to one week in length for the employee (and members of household) Non-Taxable (directly related expense) - New employee (and members of household) travel while moving to their UH assignment. This includes lodging, airfare, shipping supplies, moving company, shipment of vehicles, moving truck or car rental gasoline, car rentals (used for moving purposes only), PODS, transportation costs to and from airports. If traveling by personal car, includes mileage up to the amount specified by the IRS as non-taxable or the actual cost of transportation, such as gas, oil, parking fees, and tolls. Refer to the IRS Mileage Rate Schedule: Taxed Travel (non-direct expense) - Non-direct expenses of new employee (and members of household) while moving to a UH assignment. Includes meals (meals are ALWAYS taxable), temporary housing (unless first day leaving home city or first day upon arriving at new home city) and expenses incurred locally. Mileage greater than the amount specified by the IRS as non-taxable up to the maximum mileage rate allowed by the IRS if traveling by personal car. Refer to the IRS Mileage Rate Schedule: Short Term Storage (Non-taxable directly related expense) - Personal effects storage costs and related insurance incurred by new employees for the first 30 consecutive days after their personal effects have been removed from their former home. Does not include temporary housing Temporary Storage Beyond the First 30 days (Taxable non-related expense) - All expenses for the storage of a new employee s personal effects and insurance beyond the first 30 consecutive days after the removal of personal effects from the former home.

20 Moving and Relocation Accounts Cont d (Refer to MAPP ) Direct Payment to Moving Company (Non Reportable) - Payment made directly to moving company for moving the personal effects and household goods of a new staff or faculty member while moving to their UH assignment Freight / Transportation (Non Reportable) Freight in and out, delivery, air express, hot shot, armored car, drayage, towing, shipping, detention of a freight haul. Not moving expenses or travel. Should be used for moving labs, offices where allowed. Note: There may be some exceptions to the rule about whether a moving expense is considered Taxable or Non-taxable. The Tax Department will make the final determination based on the facts and circumstances.

21 SCENARIO 1 John Smith lives in West Melbourne, FL and has accepted a job offer from University of Houston. His offer letter states that he may reimbursed for moving expenses not to exceed $8,000. Prior to his start date, John Smith flew to Houston for house hunting purposes. He rented a car and stayed a few days at the Hilton Garden Inn. He will be reimbursed for airfare, airport parking, car rental, and meals related to his house-hunting trip. The next slide is an example of how to complete the Moving Expense Template for this scenario

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23 SCENARIO 2 Jane Doe lives in Maryland and has accepted a job offer from University of Houston. The Department will pay or reimburse up to $10,000 for her moving expenses. Jane Doe will be reimbursed for packing supplies, actual mileage, lodging and meals while moving to Houston. Jane Doe has submitted receipts for packing supplies and itemized receipts for meals and lodging. She has also indicated the addresses where she drove from (old home) and to (new home), which will be used to calculate the mileage using Google Maps. The next slide is an example of how to complete the Moving Expense Template for this scenario

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25 Who s Who Contact Name Alma Villarreal Tax Assistant Elizabeth Giron NRA Tax Specialist Keith Gernold Tax Director Contact information avillare@central.uh.edu egiron@central.uh.edu kgernold@central.uh.edu