1 Relocation and Moving Expense Policy for Employees Policy Background Eligibility... 2

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1 Relcatin and Mving Expense Plicy and Prcedure Office f Disbursements Dcument Name: Respnsible Administratr: Relcatin and Mving Expense Plicy and Prcedure Senir Vice-President fr Finance & Administratin Respnsible Department: Office f Disbursements Apprval Authrity: Directr, Disbursements Last Update: May 4, 2011 Cntact: Directr, Disbursements Bard f Regents BPM: Sectin 5.37

2 Table Of Cntent 1 Relcatin and Mving Expense Plicy fr Emplyees Plicy Backgrund Eligibility Payment/Reimbursement Rules and Guidelines Definitin f Terms Used in Plicy Relcatin and Mving Expense Prcedures Overview Letter f Offer and Relcatin and Mving Expense Agreement (see Sample Offer Letter) Relcatin Expense Authrizatin Making Payments Payments t Vendrs Reimbursement t Emplyee Year-End Reprting Relcatin Reimbursement Related Frms Relcatin and Mving Expense Agreement Frm Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement Frm Relcatin Expense Authrizatin (REA) Frm (Updated 5/04/2011) Sample Offer Letter Reference Quick Reference t Plicies and Prcedures Quick Reference t Payment Prcessing Cntacts in Case f Questins Related Plicy Reference... 29

3 1 Relcatin and Mving Expense Plicy fr Emplyees 1.1 Plicy Backgrund IMPORTANT NOTE: The Relcatin and Mving Expense Plicy has been apprved by the Gergia State University Administrative Cuncil. The purpse f this plicy is t prvide guidelines in accrdance with Gergia State University plicies, the State f Gergia cde, Internal Revenue Cde prvisins and Internal Revenue Service (IRS) regulatins fr reimbursement t emplyees fr relcatin and mving expenses and payment f relcatin related expenses directly t vendrs. Reimbursements and direct payments must cmply with state and federal regulatins. Limited relcatin and mving expenses fr faculty and staff may be prvided if funds are available in the department r schl/cllege/unit budget and the mving and relcatin expenses d nt t exceed ne-twelfth f the new persn s annual salary r ne-ninth f the new persn s academic year salary rate. Fr relcatin and mving expenses that exceed netwelfth f the new persn s annual salary r ne-ninth f the new persn s academic year salary rate, apprval frm the Prvst and Senir Vice President fr Academic Affairs and the Senir Vice President fr Finance and Administratin is required. Payment r reimbursement f persnal relcatin and mving expenses fr existing emplyees is allwable if the relcatin creates an advantage fr Gergia State University and has been apprpriately apprved. In the case f existing emplyees, the plicies utlined by the State f Gergia Office f Planning and Budget shuld be fllwed. These plicies are available at: OPB State Plices ( Individuals receiving the benefit f relcatin and mving expenses shuld be aware f any persnal incme tax implicatins and shuld cnsult a tax prfessinal with persnal tax questins. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 1 f 29

4 1.2 Eligibility Written Letter f Offer Payment and/r reimbursement f relcatin and mving expenses are allwable nly when expenses are included as a frmal and specific cmpnent f the riginal written ffer f emplyment made t the qualified applicant (the emplyee) and accepted by the emplyee in cnnectin with emplyment at the university. Expenses fr mving ffice and lab equipment will be paid r reimbursed by Gergia State University nly if included in the Letter f Offer. These expenses als d nt fall within the scpe f this plicy and are separate frm the dllar amunt ffered t the emplyee t supprt mving the persnal husehld. T be eligible fr relcatin and mving expense reimbursement, the emplyee s relcatin must meet the fllwing cnditins: 1. Availability f Qualified Applicants The emplying department must determine that the emplyee is the best qualified applicant available fr the psitin. 2. Full-time Psitin The emplyee must be assigned t a full-time, salaried psitin and must have agreed t wrk n a full-time basis fr at least ne year. Fr faculty appinted n an academic year basis, ne year is defined as tw cncurrent regular academic sessins f fall and spring r spring and fall semesters equal t nine mnths. Fr all ther annual faculty and emplyees, ne year is defined as twelve mnths. 3. Distance The distance between the emplyee s new wrk lcatin and the frmer residence must be at least fifty (50) miles greater than the distance between the emplyee s ld wrk lcatin and the frmer residence. IRS Publicatin Time IRS regulatins state that unless the emplyee wrks full-time at least thirty-nine (39) weeks during the first twelve (12) mnths after relcating, then all mving and relcatin payments/reimbursements will be cnsidered as taxable incme. 5. Number f Trips and Reimbursement - If the emplyee s spuse r partner is a State emplyee and therwise eligible fr mving and relcatin expenses thrugh the University r ther State f Gergia agency, reimbursements f any mving r relcatin expenses will be paid nly nce t mve the primary husehld t the new lcatin. 6. Relcatin f a Current Emplyee - Relcatin fr a current emplyee is allwable in situatins where the emplyee is reassigned and the relcatin is in the best interest f the institutin. In such cases, apprval f the Prvst and Senir Vice President fr Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 2 f 29

5 Academic Affairs and the Senir Vice President fr Finance and Administratin is required. Reference: OPB State Plicies Relcatin: Relcatin and Mving Expense Agreement T be reimbursed fr mving and relcatin expenses, the emplyee must accept the Letter f Offer and execute a Relcatin and Mving Expense Agreement with the University prir t incurring any expenses. N University bligatin exists, nr may any reimbursement be prcessed, until all parties execute the agreement. The Relcatin and Mving Expense Agreement will be signed by the emplyee, department head, and Dean r Vice President. The hiring unit may pay reasnable mving and relcatin expenses nt t exceed ne-twelfth f the new persn s annual salary r ne-ninth f the new persn s academic year salary rate. Fr relcatin and mving expenses that exceed ne-twelfth f the new persn s annual salary r ne-ninth f the new persn s academic year salary rate, apprval frm the Prvst and Senir Vice President fr Academic Affairs and the Senir Vice President fr Finance and Administratin is required. Relcatin and mving expense budgets include amunts reimbursed t emplyees and the direct payment by the University t third-party mving cmpanies. The Relcatin and Mving Expense Agreement will stipulate that: 1. The emplyee must remain emplyed n a full-time basis fr at least ne year (twelve mnths), cmmencing n the date that the emplyee starts wrk at the university. Fr faculty appinted n an academic year basis, ne year is defined as tw cncurrent regular academic sessins f fall and spring r spring and fall semesters equal t nine (9) mnths f emplyment. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 3 f 29

6 2. If the emplyee fails t remain emplyed fr the bligated ne year f service, the hiring department is required t immediately ntify the Payrll Department s that agreed upn deductins can be prcessed in a timely manner against remaining payrll payments. If payrll deductin f these expenses cannt be achieved, the emplyee will refund t the University the grss amunt f mving and relcatin reimbursed directly t the emplyee as well as the grss amunt f any payments made fr the benefit f the emplyee t third parties. The hiring department is respnsible fr cllecting any refund frm the emplyee which cannt be deducted in payrll prcessing. Unsuccessful effrts t cllect the refund frm the emplyee after thirty (30) days will be referred t the University Accunts Receivable Cllectins Unit fr further cllectin effrts including referral t an utside cllectin agency if necessary. Refunds cllected thrugh payrll deductin r directly frm the emplyee will be returned t the riginal funding surces, including University Fundatins. Failure t repay these expenses, as agreed, due t the breach f cntract may result in legal actin being taken against the emplyee t recver mney. As part f this agreement, the emplyee agrees t pay all cllectin csts including attrney fees and ther charges necessary fr the cllectin f any amunt still due t the university. 3. Repayment f relcatin and mving expenses by emplyees wh d nt remain emplyed fr a full year, may be pr-rated r waived if the University emplyment is terminated fr reasns beynd the emplyee s cntrl and fund acceptable t the university. Any such waiver must be apprved in writing by the emplyee s Dean r Vice President and in the case f relcatin and mving expenses that exceed ne-twelfth f the new persn s annual salary r ne-ninth f the new persn s academic year salary rate, apprval frm the Prvst and Senir Vice President fr Academic Affairs and the Senir Vice President fr Finance and Administratin is required. Shuld the repayment be pr-rated, failure t repay the pr-rated amunt may result in legal actin being taken against the emplyee t recver mney. As part f the agreement, the emplyee agrees t pay all the cllectin csts including attrney fees and ther charges necessary fr the cllectin f any amunt still due t the university. 4. The IRS requires emplyees t wrk full time fr at least thirty-nine (39) weeks during the first twelve (12) mnths after relcating in rder t claim apprpriate Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 4 f 29

7 payments/reimbursements as nn-taxable. Failure t meet this rule results in the reprting all relcatin payments/reimbursements as taxable incme. 1.3 Payment/Reimbursement Rules and Guidelines In general, relcatin and mving expenses will be paid n a reimbursement basis. Invices frm third-party cmmercial mvers that d nt exceed $4, may be paid directly t the mving cmpany by the University. Invices frm third-party cmmercial mvers that exceed $4, may be paid directly t the mving cmpany by the University, hwever, the emplyee must als btain three (3) qutes frm mving cmpanies prir t the mve and submit the qutes t the University as evidence that the cmpany prviding the lwest acceptable qute was selected. If the lwest qute was nt accepted, the emplyee must prvide a justificatin fr selecting a higher qute. Reimbursements are limited t actual csts incurred up t the amunts agreed t by the department and the emplyee within the limits utlined in this plicy. Reimbursements thrugh ther prcesses, such as petty cash r purchasing cards (P Cards), r direct payments t htels, airlines, restaurants, car rental cmpanies, r ther vendrs n behalf f emplyee which are prcessed utside f this plicy and assciated prcedures are nt allwed. T be eligible fr reimbursement, expenditures must be reasnable, necessary, and incurred after the emplyee executes a Relcatin and Mving Expense Agreement (see sectin 1.2 abve). In accrdance with IRS guidelines, receipts must be submitted fr reimbursement within sixty (60) days after expenses are incurred r paid t be cnsidered as qualified, nntaxable mving expenses. Expenses submitted fr reimbursement after sixty (60) days will be cnsidered taxable incme. All relcatin and mving expense dcumentatin is pen fr public examinatin. University emplyees and management shuld take necessary steps t ensure that all reimbursements and payments are thrughly dcumented and reviewed. Expense Dcumentatin / Receipts Original dcuments must be submitted as supprt fr expenses. Phtcpies f invices are nt acceptable unless the riginal dcument was lst and a signed memrandum is attached t the payment request giving full explanatin f the circumstances. Credit card statements r recrd f charge slips may be used as supprting dcumentatin but may nt serve as the primary dcument r receipt. A receipt is defined as a written acknwledgment that a specified remittance, article r delivery has been made. At a minimum, the name f the payee, date, details f the purchase and amunt shuld appear n the receipt. Receipts shuld be submitted fr all expenses with the exceptin f meals. Receipts fr meals are nt required; hwever, times f departure (fr the day f departure) and return (fr the day f return) shuld be nted t substantiate meals Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 5 f 29

8 eligible fr payment f per diem. See sectin IV, definitin f adequate dcumentatin fr additinal details regarding meal reimbursements. Funding In general, mst surces f funding available t departments can be used t pay relcatin expenses. There are certain ntable restrictins which shuld be cnsidered: 1. When using GSU restricted accunts funded by ne f the University Fundatins, the underlying fund agreement must specifically allw fr payment f relcatin expenses. 2. Grant funding may be utilized nly if allwed under the terms f the award r cntract. Grants may include limitatins n amunts fr relcatin expenses r may have limits n payment f certain types f relcatin expenses. Any relcatin expense charged t a grant accunt must meet the requirements f the grant and r the requirements f the funding agency r spnsr. 3. Cnference and wrkshp accunts, agency accunts, and student activity fee r technlgy fee accunts shuld nt be utilized t pay relcatin expenses. 4. Departmental Sales and Service accunts shuld nly be utilized in thse situatins where the emplyee s wrk is directly assciated with the sales r service peratin and when the expense can be supprted by the budget f the peratin. Qualified and Nnqualified Expenses 1. Requests fr direct payments t vendrs and reimbursements t emplyees (bth taxable and nn-taxable) will be submitted t the Office f Disbursements. 2. Payments will be made in accrdance with the Internal Revenue Cde and Internal Revenue Service Regulatins. 3. Relcatin and mving expenses excluded frm taxable incme ( qualified expenses ) are defined as the reasnable cst f: Mving husehld gds and persnal effects frm the frmer primary residence t the new residence (including the cmmn carrier), and Traveling (including ldging but nt meals during the perid f travel) frm the frmer primary residence t the new place f residence. (Reimbursement fr in-transit meals is subject t tax withhlding and reprting). Expenditures t be reimbursed must be reasnable and necessary. Accrding t the IRS guidelines, t be cnsidered as qualified and nn-taxable, relcatin and mving expenses must als be incurred within twelve (12) mnths fllwing the date the emplyee reprts t wrk at the new lcatin. Emplyees must execute the Relcatin and Mving Expense Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 6 f 29

9 Agreement prir t incurring any charges fr payment r reimbursement. Gergia State University has an Accuntable Plan under IRS guidelines (see Definitins) and therefre requires emplyees t adequately accunt fr their expenses within sixty (60) days after they were paid r incurred. The ttal dllar limit fr grss reimbursements made directly t the emplyee fr all expenses, reimbursements and direct payments t third parties, may nt exceed the amunt stated in the Relcatin and Mving Expense Agreement. Grss reimbursements (i.e. actual reimbursements received by the emplyee r paid t third parties n behalf f the emplyee) include any taxes withheld n these reimbursements. Payment f relcatin and mving expenses includes the fllwing allwable expense categries. T demnstrate the tax implicatins f relcatin and mving expenses t the emplyee, these categries are separated int qualified and nnqualified expenses in accrdance with IRS definitins. Qualified Expenses (nt subject t tax withhlding): Cmmercial mving cmpany Packing/crating/mailing/shipping husehld gds Miscellaneus packing supplies that d nt becme the persnal prperty f the emplyee, i.e. padlcks r tls will nt be reimbursed Optinal insurance n items such as furniture, clthing and utensils Rental truck In-transit strage fr up t 30 cnsecutive days Shipment f car(s), if nt used in mve Travel and ldging csts fr ne trip per persn (emplyee and husehld members) frm the ld residence t the new residence, which may include: Mileage fr mving per IRS limitatins Ldging in transit (GSU will reimburse in accrdance with the State Travel Regulatins) Airfare (cach nly) Rental car (apprpriate measures shuld be taken t btain best value) Tlls, taxi, shuttle service, r parking Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 7 f 29

10 Payment r reimbursement f all ther relcatin and mving expenses allwable under this plicy but nt classified as qualified expenses (see abve) will have apprpriate taxes withheld ( nnqualified expenses ). Nnqualified Expenses (subject t tax withhlding and reprting): Travel and ldging csts incurred during additinal trips frm the ld residence t the new residence Cst f meals at any pint in the relcatin prcess (GSU will reimburse in accrdance with the State Travel Regulatins) Mileage in excess f IRS limitatins Huse Hunting expenses (may include multiple trips, hwever, ttal cmbined days may nt exceed five (5) days), may include: Mileage per IRS guidelines Ldging (GSU will reimburse in accrdance with the State Travel Regulatins) Airfare (cach nly) Rental car (apprpriate measures shuld be taken t btain best value) Tlls, taxi, shuttle service, r parking Strage in excess f thirty (30) days but nt t exceed six (6) mnths Temprary quarters (GSU will reimburse fr temprary quarters up t a maximum f six (6) cnsecutive mnths) Actual r Final Mve t New Jb Lcatin: Travel relating t relcatin is eligible fr reimbursement fr nly the trip t bring the emplyee (and husehld members if applicable) t the new residence. The cst f traveling frm the frmer hme t the new hme shuld be by the shrtest, mst direct rute available by cnventinal transprtatin. Husehld members are nt required t travel tgether r at the same time. When the emplyee and husehld are traveling t the new hme, expenses fr in-transit meals and ldging will be reimbursed. Limits n ldging rates impsed by State Travel Regulatins and University travel plicy are applicable t meal and htel expenses during travel. Reimbursement fr in-transit meals is subject t tax withhlding and reprting. Reimbursement fr in-transit ldging is nt subject t tax Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 8 f 29

11 withhlding. Transprtatin expenses als include parking, tlls, and mileage at the rate stipulated by current IRS rules. Transprtatin and Strage f Husehld Gds and Persnal Effects: Cmmn Carrier Mves: The actual csts paid fr cmmn carrier transprtatin f the emplyee s husehld gds and persnal effects frm the frmer principal residence t the new residence at the new wrk lcatin are reimbursable and are nt subject t tax withhlding. If a cmmn carrier is used, the amunt f the actual csts is allwed and is included in the ttal budget fr relcatin expenses as stated in the Relcatin and Mving Expense Agreement. If the cst f the mving service frm the cmmn carrier is less than $5,000, the emplyee may chse the mving agent in cnsultatin with the hiring department. Invices frm third-party cmmercial mvers that exceed $4, may be paid directly t the mving cmpany by the University, hwever, the emplyee must als btain three (3) qutes frm mving cmpanies prir t the mve and submit the qutes t the University as evidence that the cmpany prviding the lwest acceptable qute was selected. If the lwest qute was nt accepted, the emplyee must prvide a justificatin fr selecting a higher qute. Self-Mves: If the emplyee chses t mve himself/herself, the maximum f actual csts allwed fr reimbursement must be included in the Relcatin and Mving Expense Agreement. These expenses are paid n a reimbursement-basis nly frm the emplyee s riginal receipts. The fllwing actual csts are reimbursable, within the ttal limitatin, with apprpriate dcumentatin: 1. Mving vehicle rental. Csts f renting a mving van, truck, trailer, hand truck r ther apprpriate mving equipment, vehicles and supplies are reimbursable. Purchase f such a vehicle r equipment is nt reimbursable. The purchase f mving supplies, such as packing paper, bxes, r cartns may be reimbursed with apprpriate receipts; hwever, items purchased that becme persnal prperty i.e. padlcks, trailer hitch receivers, dllies, etc. are nt reimbursable. Gas used by the rental truck during the mve is reimbursable with prper receipts. 2. Labr used during mve. Reimbursement is limited t a reasnable hurly wage with the maximum ttal f $500. Labr prvided by the emplyee r the emplyee s immediate family member(s) is nt reimbursable. A receipt frm the business emplyed t prvide labr, with signature and tax identificatin number, and amunt paid must be attached t the reimbursement request. 3. Mileage. If a persnally wned r brrwed mving vehicle is used in the mve, reimbursement is allwed at the standard mileage rate fr mving expenses as specified in the current IRS regulatins. Reimbursement will nt be allwed t Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 9 f 29

12 cver the rental value f the persnally wned vehicle. A car r truck with a trailer in tw will als be reimbursed at the mileage rate specified fr mving expenses in the current IRS regulatins. 4. Tlls. Tlls paid during the mve are reimbursable prvided the name f the facility (rad, bridge, tunnel, etc.) is prvided n the receipt. 5. Strage. The expense f string husehld gds and persnal effects fr a maximum f six (6) cnsecutive mnths is reimbursable if the emplyee is unable t mve directly int the new residence. This amunt is includable in the Relcatin and Mving Expense Agreement limitatin. The first thirty (30) days f strage is a qualified expense (nt subject t tax withhlding); hwever, reimbursement fr strage beynd the first thirty (30) days is a nnqualified expense and taxes will be apprpriately withheld. Unallwable Relcatin Expenses Payment r reimbursement f any relcatin r mving expense nt expressly utlined in this dcument must have prir apprval by the department head, dean r vice-president, Prvst, Senir VP fr Academic Affairs, and the senir vice-president fr Finance and Administratin and must be included in the Relcatin and Mving Expense Agreement signed by all parties. Payment f any relcatin r mving expense nt expressly utlined in this dcument, which are apprved fr payment, will be treated as nnqualified expenses and may require limitatins n funding surces. Payments fr relcatin and mving expenses shuld nt exceed the amunt agreed upn in the written Letter f Offer and Relcatin and Mving Expense Agreement. Interview Expenses Interview expenses, unlike huse hunting csts, ccur prir t an accepted ffer and d nt fall within the scpe f this plicy. Jb applicant travel des nt include pre-mve r huse-hunting trips nce an emplyment ffer has been extended t the candidate. If travel is prvided t the candidate between the time an ffer has been made and the time the ffer has been fficially accepted, thse travel expenditures cannt be made frm a University accunt; hwever, departments can request expenses be paid directly frm a University affiliated Fundatin if funds are available and apprved by the affiliate. Once the ffer has been accepted by the candidate, payment fr travel expenses that are nt business related (i.e. pre-mve r huse hunting trips) must fllw prcedures as utlined in this plicy. Expenses fr Mving Office and Lab Equipment Expenses fr mving ffice and lab equipment will be paid r reimbursed by the Gergia State University nly if included in the Letter f Offer. These expenses als d nt fall within the scpe f this plicy and are separate frm the dllar amunt ffered t the emplyee t supprt mving the persnal husehld. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 10 f 29

13 Emplyee Respnsibilities All expenses submitted fr reimbursement must be actual, reasnable, necessary and within plicy guidelines. Each emplyee eligible fr mving and relcatin reimbursement is respnsible fr: Assisting the department in cmpleting the Relcatin and Mving Expense Agreement Obtaining and submitting riginal receipts necessary t supprt all claims fr reimbursement within sixty (60) days after paid r incurred; Submitting claims fr expenses that were incurred after executin f the Relcatin and Mving Expense Agreement but in n case later than twelve (12) mnths fllwing the first date f emplyment at Gergia State University, unless the emplyee can shw that circumstances existed t prevent mving within that time perid; Cmpleting the Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement Frm Adhering t the stipulatins utlined in the Relcatin and Mving Expense Agreement University Respnsibilities Hiring department Relcatin and mving expenses and payment prtcl, in accrdance with this plicy, must be discussed and finalized with the emplyee during the hiring prcess. Departments shall prvide the emplyee with the written ffer letter (which includes an amunt fr relcatin expenses). The hiring fficial(s) shuld prvide the emplyee with a cpy f the University s plicy n relcatin and mving expenses as it utlines the tax implicatins f these expenses. The University cannt determine the specific impact f taxable payments/reimbursements n the emplyee s tax liabilities. Emplyees shuld cnsult with their persnal tax advisr as necessary. Departments will assist in the executin f the Relcatin and Mving Expense Agreement fr Emplyees. Departments will determine the budget and funding surces fr the expenses and cmplete the Relcatin Expense Authrizatin (REA) Frm Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 11 f 29

14 Department representatives will enter a Purchase Order (PO) t encumber funds, when necessary. Departments will wrk with the emplyee t cmplete mving arrangements. If mves using a cmmercial carrier will be in excess f $4,999, departments will wrk with the Prcurement department t utilize an existing cntract with a third-party cmmercial mving cmpany fr the transprtatin f husehld gds and persnal effects. If nne f the existing cntracts can prvide the needed service, the department will wrk with Prcurement t cntract with an apprpriate cmmercial carrier. Departments will assist the emplyee with submissin f the Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement Frm required t be attached t requests fr payment (invices) t a 3 rd party, r t a request fr reimbursement t the emplyee. Original receipts and supprting dcuments are required. Disbursements All Relcatin and Mving Expense dcumentatin and frms, alng with requests fr payment will be submitted t the Office f Disbursements. The Disbursements Unit, in cnsultatin with the Payrll Department, has ultimate authrity t determine taxability f reimbursements fr withhlding purpses, and the respnsibility t insure that taxable ( nnqualified ) and nn-taxable ( qualified ) payments receive apprpriate prcessing and are reprted crrectly n the emplyee s W-2 frm. Ensure submissin f cmplete dcumentatin. Review payments requested based n the plicy and applicable tax regulatin. Prcess payment. Ntify Emplyee f taxability f relcatin and mving expense reimbursements. Reprt taxability f relcatin and mving expense reimbursement t Payrll t be included n the W Definitin f Terms Used in Plicy The fllwing definitins are used in the Gergia State University Relcatin and Mving Expenses Plicy fr Emplyees: Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 12 f 29

15 Accuntable Plan: Under IRS guidelines, an Accuntable Plan is ne in which an emplyer s reimbursement plicy meets the fllwing criteria: 1. Expenses paid r incurred must have a business cnnectin 2. Emplyees must adequately accunt fr expenses within a reasnable perid f time (sixty (60) days) after they were paid r incurred 3. Any excess reimbursement r allwance must be returned within a reasnable perid f time Adequate Dcumentatin: Examples f specific dcumentatin requirements are listed belw. Prf f payment is als part f the required dcumentatin unless payment was made t the vendr directly frm the University. Original dcuments are required. 1. Husehld mves cmpleted by a 3 rd party mving cmpany bill f lading; detailed invice r receipt; 2. Mving vehicle rental vehicle rental agreement and receipt; 3. Labr during the mve - receipt frm the business engaged t prvide labr, with signature and tax identificatin number and amunt paid; limited t a reasnable hurly wage with the maximum ttal payment f $500 per mve; labr prvided by the emplyee r the emplyee s immediate family member(s) is nt reimbursable; 4. Airplane tickets airline ticket receipt cupn and/r equivalent printed receipt fr e- tickets; 5. Ldging itemized htel bill; 6. Aut rental aut rental agreement; 7. Aut mileage actual mileage as recrded by the dmeter r mileage can be btained frm the MapQuest internet web site ( 8. Aut fuel and il riginal receipts fr fuel and/r il. Fuel and il expenses are nt reimbursable if the emplyee is claiming reimbursement fr mileage; 9. Strage & shipping riginal itemized receipt r bill; 10. Utility cnnect & discnnect riginal receipt r bill; 11. Meals cst f meals at any pint in the relcatin prcess will be reimbursed in accrdance with the State Travel Regulatins. Receipts fr meals are nt required; hwever, times f departure (fr the day f departure) and return (fr the day f return) shuld be nted n the request fr payment t substantiate meals eligible fr payment f Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 13 f 29

16 per diem. Per the U.S. General Services Administratin (GSA) which establishes the federal per diem rates, each family member is entitled t a different percentage f the applicable per diem rate n the days they are eligible. Emplyee - 100% f rate; Spuse - 75% f rate (100% if traveling separately frm spuse); Children ver 12-75% f rate; Children under 12-50% f rate Any unusual items r special circumstances causing a plicy deviatin shuld be fully explained n an attached, signed memrandum and prperly apprved by the department. Detailed receipts shwing items purchased may be submitted in lieu f per diem amunts. Purchases f alchlic beverages are nt allwed n institutinal funds and will nt be apprved fr payment; Huse Hunting: (Pre-Mve huse hunting) Any trip made fr the purpse f securing residence in the new lcatin with the exceptin f the final mve. Temprary Living: riginal htel bill r shrt-term lease agreement fr temprary ldging; brief explanatin stating the purpse fr temprary living. Husehld: Includes any members f the emplyee s husehld r dependents residing in the husehld and/r mving t the new lcatin. Husehld Gds: Persnal prperty which may be transprted legally in interstate cmmerce and which belngs t an emplyee and his immediate family at the time shipment begins. The term includes husehld furnishings, equipment and appliances, furniture, clthing, bks, and similar prperty. It des nt include prperty which is fr resale r dispsal rather than fr use by the emplyee r members f his immediate family; nr des it include prperty intended fr use in cnducting a business r any ther cmmercial enterprise. Letter f Offer: A written agreement dcumenting the terms and cnditins f emplyment between the new emplyee and the University and including the amunt allcated fr relcatin and mving expenses. Sample Offer Letter is prvided here. Mving: Actins taken t change a place f primary r permanent residence. Mving Advances: Cash advances t the emplyee fr paying mving r relcatin expenses. Cash advances are nt allwed under Gergia State University s Relcatin and Mving Expense Plicy fr Emplyees. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 14 f 29

17 Mving Expenses: Expenditures fr transprting the emplyee, members f emplyee s husehld, husehld gds and persnal effects frm the frmer residence t the new residence. Nnqualified Mving Expenses: Mileage in excess f the standard IRS rate per mile fr mving expenses, meals cnsumed while mving r living in temprary quarters, and husehunting trips. These expenses will be reimbursed t the emplyee accrding t the limits in the signed Relcatin and Mving Expense Agreement, but have persnal tax cnsequences fr the emplyee. Reimbursement f nn-qualified expenses is subject t withhlding f applicable incme and emplyment taxes and these reimbursements will be reprted n the emplyee s annual Frm W-2 as incme. Nn-Reimbursable Mving Expenses: Expenses nt specified in the Gergia State University Relcatin Expense Plicy fr Emplyees. Nn-reimbursable expenses may be paid with funds prvided by a University Fundatin accunt and nt by University accunts. Persnal Residence: A huse, cndminium, twnhuse r rental prperty (e.g. apartment, flat) where the emplyee s primary husehld is maintained n a permanent basis. Primary Husehld: Husehld gds and persnal effects, which are maintained at the emplyee s main place f residence. Qualified Mving Expenses: Expenses assciated with packing, lading, hauling, insuring r temprarily string prperty (n mre than 30 days), unpacking, transprtatin and ldging during the mve (excludes meals), and mileage at the standard IRS rate fr mving expenses (see Relcatin: The prcess f assigning, establishing, and/r settling in a particular place fr emplyment purpses. Relcatin Expenses: Expenditures ther than mving expenses incurred in the prcess f relcating the emplyee and husehld. Relcatin and Mving Expense Agreement: An agreement t repay mving and relcatin expenses if the emplyee remains in the emplyment f the University frm the first day in the new psitin until twelve (12) mnths thereafter. The agreement shuld be made at the time f ffering the psitin and then signed prir t an emplyee incurring expenses. Relcatin and Mving Expense Agreement Frm is prvided here. Relcatin Expense Authrizatin (REA): A frm t be cmpleted by the hiring department prir t making an fficial ffer t pay relcatin and mving expenses dcumenting the accunt number and apprval f each funding surce t be used fr mving and relcatin expenses. Relcatin Expense Authrizatin Frm (REA) (Last Updated 5/04/2011) is prvided here. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 15 f 29

18 Temprary Quarters: Ldging r husing in which the emplyee lives until a permanent residence is secured. Temprary quarters can cnsist f any type f ldging including htels, mtels, apartments r single-family dwellings. Per IRS guidelines, these expenses are classified as nnqualified, taxable mving expenses. Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement: A Frm t be cmpleted by the emplyee t prvide imprtant details abut the mve. This frm is prvided here. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 16 f 29

19 2 Relcatin and Mving Expense Prcedures 2.1 Overview This dcument is designed t prvide guidance fr situatins where a department has received apprval(s) t pay relcatin and mving expenses. The apprvals are dcumented n the Relcatin Expense Authrizatin Frm (frm dcuments funding surces fr the payment/s), agreed upn in the Relcatin and Mving Expense Agreement, and included with the Official Offer f Emplyment letter fr a newly hired emplyee. Payment f relcatin and mving expenses fr an existing emplyee f Gergia State University requires cmpletin f the Relcatin and Expense Authrizatin frm and the Relcatin and Mving Expense Agreement. Payments made t r n behalf f Freign Natinals shall be in cmpliance with all applicable federal laws and all relevant visa restrictins and may require additinal prcedures. Fr further infrmatin regarding Freign Natinals, please cntact the Tax Accuntant in the Office f Disbursements, finisi@langate.gsu. Payments made t reimburse the emplyee fr relcatin and mving expenses can either be taxable r nn-taxable t the emplyee. This tax determinatin is made based slely n the Internal Revenue Service (IRS) regulatins. IRS Publicatin 521 cntains the regulatins that will be used t determine taxability. Reimbursements will be included n the emplyee s W-2. The University cannt determine the specific impact f taxable payments/reimbursements n the emplyee s tax liability. Emplyees shuld cnsult with their persnal tax advisr as necessary. Payments can be made directly t a mving cmpany, r the emplyee can be reimbursed fr expenditures. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 17 f 29

20 Reimbursements thrugh ther prcesses, such as petty cash r purchasing cards (PCards), r direct payments t htels, airlines, restaurants, car rental cmpanies, r ther vendrs n behalf f emplyee which are prcessed utside f this plicy and assciated prcedures are nt allwed Letter f Offer and Relcatin and Mving Expense Agreement (see Sample Offer Letter) The hiring fficial(s) will execute a Letter f Offer and a Relcatin and Mving Expense Agreement with the emplyee. The Relcatin and Mving Expense Agreement will be signed by the emplyee, department head, and Dean r Vice President. Fr relcatin and mving expenses that exceed ne-twelfth f the new persn s annual salary r ne-ninth f the new persn s academic year salary rate, apprval frm the Prvst, Senir Vice President fr Academic Affairs, and the Senir Vice President fr Finance and Administratin is als required. The hiring fficial(s) shuld prvide the emplyee with a cpy f the University s plicy n relcatin and mving expenses as it utlines the tax implicatins f these expenses. The University cannt determine the specific impact f taxable payments/reimbursements n the emplyee s tax liabilities. Emplyees shuld cnsult with their persnal tax advisr as necessary Relcatin Expense Authrizatin The hiring fficial(s) will determine which funding surces are available and will secure the apprpriate apprvals fr each surce befre the fficial ffer t pay Relcatin and Mving Expenses. The Relcatin Expense Authrizatin (REA) frm cllects the accunt number and apprval f each funding surce. 1. Departmental funds must be apprved by department head with budgetary respnsibility fr the State Accunt; Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 18 f 29

21 2. GSU Fundatin funds must be apprved by the apprpriate Dean r Vice-President as required by the respective fund agreement and then sent t the Fundatin fr apprval; 3. GSU Research Fundatin funds must be apprved by the Vice President fr Research; 4. Grant funds must be apprved by the prject s Principal Investigatr (PI), the department head, and the Research Financial Services Office. Departments will wrk with the emplyee t cmplete mving arrangements. If mves using a cmmercial carrier will be in excess f $4,999, departments will wrk with the Prcurement department t utilize an existing cntract with a third-party cmmercial mving cmpany fr the transprtatin f husehld gds and persnal effects. If nne f the existing cntracts can prvide the needed service, the department will wrk with Prcurement t cntract with an apprpriate cmmercial carrier Making Payments The IRS has tw general requirements fr expenditures: Mving expenses must be incurred within ne year frm the date the emplyee first reprted t wrk; and Mving expenses must be submitted t the emplyer fr payment r reimbursement within sixty (60) days after they were incurred. Nte: Expenses fr mving ffice and lab equipment will be paid r reimbursed by Gergia State University nly if included in the Letter f Offer. These expenses d nt fall within the scpe f this plicy and are separate frm the dllar amunt ffered t the emplyee t supprt mving the persnal husehld. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 19 f 29

22 2.5. Payments t Vendrs Emplyees may elect t have vendrs (generally mving cmpanies) perfrm their services and submit their invice directly t the university. The invice shuld be sent directly t the Department where the emplyee wrks. Expenses fr mving ffice and lab equipment will be paid r reimbursed by Gergia State University nly if included in the Letter f Offer. These expenses d nt fall within the scpe f this plicy and are separate frm the dllar amunt ffered t the emplyee t supprt mving the persnal husehld. Reimbursements thrugh ther prcesses, such as petty cash r purchasing cards (PCards), r direct payments t htels, airlines, restaurants, car rental cmpanies, r ther vendrs n behalf f emplyee which are prcessed utside f this plicy and assciated prcedures are nt allwed. Departments shuld submit the fllwing dcumentatin t Disbursements fr review (Items must be stapled tgether and included in ne payment packet ): Payment t 3 rd Party fr Relcatin / Mving Expenses (payment n behalf f the emplyee) Withut Purchase Order (Expenditure less than $5,000) (Expenses must be prcessed in the same fiscal year as apprved, r PO may be required). 1. Vendr s Invice ( See Sectin 1.4 Adequate Dcumentatin ) 2. Cpy f Offer Letter 3. Cpy f Cmpleted Relcatin and Mving Expense Agreement 4. Cpy f Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement. 5. Cmpleted Relcatin Expense Authrizatin Frm (REA). With Purchase Order (PO) (Expenditure $5,000 r 1. Vendr s Invice Indicated PO # listed n Invice See Sectin 1.4 Adequate Dcumentatin Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 20 f 29

23 Mre) PO Vucher must be entered by Disbursements. 2. Cpy f Offer Letter 3. Cpy f Cmpleted Relcatin and Mving Expense Agreement 4. Cpy f Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement. 5. Cmpleted Relcatin Expense Authrizatin Frm (REA). 1. The vendr must submit the invice t the emplyee s hme department 2. The department will review and apprve the invice, and attach the invice t the payment packet. 3. Disbursements will prcess the invice fr payment Reimbursement t Emplyee Emplyees may pay expenses directly and apply fr reimbursement. Departments shuld submit the fllwing dcumentatin t Disbursements fr review (Items must be stapled tgether and included in ne payment packet ): Payment t an Emplyee fr Relcatin r Mving Expenses Withut Purchase Order (Expenditure less than $5,000) (Expenses must be prcessed in the same fiscal year as apprved, r PO may be required). 1. Payment Request Frm (Descriptin shuld identify Relcatin/ Mving Expense, Specific Trip, Dates) a. Attach Mem t specify detail f payment requested. b. Attach Original Receipts (Tape receipts t a large piece f paper. Include listing f receipts and the ttal calculatin). ( See Sectin 1.4-Meals ) 2. Cpy f Offer Letter (Expenses must be included as a frmal and specific cmpnent f the riginal written Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 21 f 29

24 ffer) 3. Cmpleted Relcatin and Mving Expense Agreement 4. Cmpleted Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement Frm 5. Cmpleted Relcatin Expense Authrizatin Frm (REA). With Purchase Order (PO) (Expenditure $5,000 r Mre) PO Vucher must be entered by Disbursements. 1. Mem t specify detail f payment requested. (Replaces Payment Request Frm fr PO Payment). Mem must state: a. Name f Emplyee (Payee) b. Specific Purpse fr payment c. Amunt f Payment Nte: Attach Original Receipts (Tape receipts t a large piece f paper. Include listing f receipts and the ttal calculatin). ( See Sectin 1.4-Meals ) 2. Cpy f Offer Letter (Expenses must be included as a frmal and specific cmpnent f the riginal written ffer) 3. Cmpleted Relcatin and Mving Expense Agreement 4. Cmpleted Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement Frm 5. Cmpleted Relcatin Expense Authrizatin Frm (REA) 1. Disbursements will review fr cmpleteness and determinatin f the tax status f the reimbursement. 2. Disbursements will prcess the Payment Request. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 22 f 29

25 3. Disbursements will prvide the emplyee with a reprt f the cumulative taxable and nntaxable impact fr each payment. 4. Disbursements will reprt payments t emplyees t Payrll fr reprting n the W Year-End Reprting All reimbursements will be added t the respective emplyee s W-2 in January fr the previus calendar year. Reimbursement f nnqualified expenses will require the payment f respective federal and state incme taxes. The IRS allws institutins t have a reasnable cut-ff fr reprting taxable expense reimbursements. Generally, Gergia State University uses a cut-ff date f Octber 31 t reprt reimbursement f relcatin and mving expenses n the emplyee s W-2 frm. Reimbursements fr expenses ccur after that cut-ff date (Nvember and December) wuld then be included n next year s W-2; thus, a mve that was cmpleted in ne calendar year may pssibly have relcatin and mving expenses reprted in tw different calendar years. An emplyee wuld then als receive tw tax summary reprts. * Imprtant Nte - The Office f Disbursements, in cnjunctin with the Payrll Office, will make every effrt t include relcatin and mving expenses n the emplyee s W-2 which crrespnds with the calendar year in which the reimbursement was prcessed. Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 23 f 29

26 3 Relcatin Reimbursement Related Frms 3.1 Relcatin and Mving Expense Agreement Frm Relcatin and Mving Expense Agreement Frm: Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement Frm Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement Frm: Relcatin Expense Authrizatin (REA) Frm (Updated 5/04/2011) Relcatin Expense Authrizatin (REA) Frm: Sample Offer Letter Sample Offer Letter: Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 24 f 29

27 4 Reference 4.1 Quick Reference t Plicies and Prcedures Limited relcatin and mving expenses fr faculty and staff may be prvided if funds are available in the department r schl/cllege/unit budget and the mving and relcatin expenses d nt t exceed ne-twelfth f the new persn s annual salary r ne-ninth f the new persn s academic year salary rate. (1.1) - Expenses fr mving ffice and lab equipment will be paid r reimbursed by Gergia State University nly if included in the Letter f Offer. These expenses als d nt fall within the scpe f this plicy and are separate frm the dllar amunt ffered t the emplyee t supprt mving the persnal husehld. Requirements (1.2): - A. Relcatin Expense Authrizatin (REA): (t be cmpleted by the hiring department prir t making an fficial ffer t pay relcatin and mving expenses, dcumenting the accunt number and apprval f each funding surce fr mving and relcatin expenses. Funding: There are certain ntable restrictins which shuld be cnsidered. (1.3) - B. Written Letter f Offer relcatin and mving expense is allwable nly when expenses are included as a frmal and specific cmpnent f the riginal written ffer - C. Relcatin and Mving Expense Agreement - An agreement t repay mving and relcatin expenses if the emplyee remains in the emplyment f the University frm the first day in the new psitin until twelve (12) mnths thereafter. The agreement shuld be made at the time f ffering the psitin and then signed prir t an emplyee incurring expenses. Frm must be signed by Emplyee, Department Head, and Dean r VP - D. Emplyee Applicatin fr Relcatin Expense Payment r Reimbursement Frm Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 25 f 29

28 In general, relcatin and mving expenses will be paid n a reimbursement basis. (1.3) Invices frm third-party cmmercial mvers that d nt exceed $4, may be paid directly t the mving cmpany by the University. Invices frm third-party cmmercial mvers that exceed $4, may be paid directly t the mving cmpany by the University, hwever, the emplyee must als btain three (3) qutes frm mving cmpanies prir t the mve and submit the qutes t the University as evidence that the cmpany prviding the lwest acceptable qute was selected. (1.3) If mves using a cmmercial carrier will be in excess f $4,999, departments will wrk with the Prcurement department t utilize an existing cntract with a third-party cmmercial mving cmpany fr the transprtatin f husehld gds and persnal effects. If nne f the existing cntracts can prvide the needed service, the department will wrk with Prcurement t cntract with an apprpriate cmmercial carrier. Original dcuments and receipts must be submitted as supprt fr expenses. (1.3) (Als See Sectin Adequate Dcumentatin) Reimbursements thrugh ther prcesses, such as petty cash r purchasing cards (P Cards), r direct payments t htels, airlines, restaurants, car rental cmpanies, r ther vendrs n behalf f emplyee which are prcessed utside f this plicy and assciated prcedures are nt allwed. (1.3) Tax Reprting All relcatin and mving expense payments made directly t the emplyee will be reprted n the W-2 as either taxable r nn-taxable. (1.3) - Tax determinatin is made based slely n the Internal Revenue Service (IRS) regulatins. IRS Publicatin 521 cntains the regulatins that will be used t determine taxability Receipts must be submitted fr reimbursement within sixty (60) days after expenses are incurred r paid t be cnsidered as qualified, nn-taxable mving expenses. Expenses submitted fr reimbursement after sixty (60) days will be cnsidered taxable incme. The Disbursements Department, in cnsultatin with the Payrll Department has ultimate authrity t determine taxability f reimbursements fr withhlding purpses, and the respnsibility t insure that taxable ( nnqualified ) and nn-taxable ( qualified ) payments receive apprpriate prcessing and are reprted crrectly n the emplyee s W-2 frm. See Sectin 1.3 Last Updated 05/04/2011 Relcatin and Mving Expense Plicy and Prcedure Page 26 f 29