Payroll Services (5000) Procedures
|Procedure Number||Procedure Name||Category||Content|
||Payroll Services (5000)||
James Madison University's Payroll Services Office is committed to serving our customer, the JMU employee, by providing reliable, responsive and timely services in support of the University’s compensation, benefits, payroll tax related and reporting services. Payroll Services will administer the regulations of federal agencies such as the Internal Revenue Service, the Social Security Administration, the U.S. Department of Labor, and the Federal Office of Child Support Enforcement.
This section outlines the responsibilities, procedures and documentation required for paying full-time, part-time and student employees of the University in accordance with the Human Resource Management System (HRMS) requirements.
.200 Full-time Classified Staff and Faculty Employees
.213 Human Resources
.214 Payroll Services
.220 Processing Procedures
.222 Human Resources
NOTE: Payroll Services will include PAR forms or appropriate employment forms received after the HR calendar deadline on the next payday. For a complete schedule of all payroll deadlines, see the payroll calendar published on the Payroll Services webpage.
.223 Payroll Services
.230 Payroll Deductions
Various deductions and benefits are offered to full-time classified staff and faculty personnel. This section defines the mandatory and optional deductions and the methods for initiating these deductions and benefits.
.231 Mandatory Deductions
Social Security (FICA-OASDI and Medicare) Withholding
All employees are subject to social security withholding. The federal government designates the percentage an employee will have deducted from their gross wages. The employer (JMU) automatically deducts the employee's social security amount from their gross wages, and contributes a like. When an employee's gross earnings reach the FICA wage base ceiling for the calendar year, no further withholding will be made.
Federal and State Tax Withholding
Federal and state tax withholding forms shall be kept on file in Payroll Services. The forms are required to establish and change the employee's number of allowances, which determine the amount of federal and state income tax withheld from wages.
Blank forms are available from Payroll Services, Human Resources, and department offices.
The employee shall complete the form during HR's Onboard process in the Human Resources Office. Human Resources will forward the completed forms to Payroll Services for newly established employees. Employees should submit tax forms to change established allowances directly to Payroll Services or make their tax withholding changes on-line via MyMadison.
.232 Paid Benefits
All full-time classified employees are provided a membership in the Virginia Retirement System (VRS). Optional retirement plans are available to faculty members through various retirement providers. Full-time faculty employees have sixty (60) days from date of employment to elect an optional retirement plan. The University's retirement programs supplement federal social security benefits for disability or age retirement. The University pays for employer and a portion of the employee's contributions. Employees should contact the Human Resources Office for additional information. The University pays a percentage toward retirement benefits based on rates set by the General Assembly and the Virginia Retirement System. As an employee, you may be required to contribute a percentage as well.
Group Life Insurance
The University provides all full-time, classified employees with group life insurance. The principal amount of life insurance is double the annual salary rounded to the next largest thousand dollars. (i.e., a $20,000 annual salary provides a $40,000 policy). This benefit is cancelled upon termination from the University.
The premium for the face value of employer paid group life insurance that exceeds $50,000 is taxable income. Applicable FICA tax (based on age and the number of months paid at each rate) is deducted from an employee's pay and is referred to as "imputed life."
Virginia Sickness and Disability Program (VSDP)
All full-time classified employees hired after January 1, 1999 and are a member of the Virginia Retirement System are also a participant of the Virginia Disability and Sickness Program. This program provides for paid sick leave, paid family sick leave, short-term disability, and long term disability coverage. This program was opened to all full-time classified employees, hired before January 1, 1999, who so designated their choice to participate in the VSDP program by March 31, 1999.
.233 Optional Deductions
Foundation and Duke Club Contributions
The forms for this deduction are available from the Foundation/Duke Club office. The employee authorizes a specific amount to be deducted from their pay for donation to the JMU Foundation/Duke Club.
JMU Football and Basketball season tickets may be purchased by payroll deduction. Forms are available from the Intercollegiate Athletic, Budget/Tickets/Facilities Office.
Virginia Credit Union
The forms for credit union deductions are available online at www.vacu.org. This form authorizes a semi-monthly deduction to be distributed to various accounts at the credit union, as specified by the employee, and will be included as part of the direct deposit process on behalf of the employee.
Tax-sheltered Annuities and Deferred Compensation Plans
Tax-sheltered annuities may be purchased from a variety of University approved insurance companies. Payroll deductions may not exceed the amount authorized by Federal Tax Regulations. A state sponsored deferred compensation plan is administered through the Commonwealth of Virginia. Forms are available from the Human Resources Office.
This deduction provides insurance designed to compensate an employee in case of a long-term disability. Application forms are available from the Human Resources Office and deductions are effective upon approval for coverage by a third party insurer.
Virginia State Employees Combined Charitable Campaign
The JMU Combined Charitable Campaign Coordinator sends the payroll deduction pledge cards to each full-time employee. This pledge card authorizes a deduction amount, specified by the employee, as a donation to qualified charitable health and human care organizations.
The University provides all full-time classified employees with health insurance and major medical benefits. Family and/or dependent coverage is available at the employee's expense. The University provides payroll deduction for the cost of family or dependent coverage. Coverage begins on the first day of the first full month of employment, if the employee applies for coverage within 31 days of employment. Enrollment, change, and the waiver forms should be completed in the Human Resources Office or through the E-Direct automated system administered by the State. Deductions are initiated the month coverage commences. When payments for coverage cannot be automatically deducted through payroll, payment shall be made by personal check and submitted to Payroll Services.
JMU Flex Account
Payroll deductions can be taken for depositing funds into an employee's JAC Card/Flex account. Deduction sign-up cards may be completed in Card Services.
Flexible Reimbursement Accounts
There are two type of reimbursement accounts, Medical and Dependent Care. A medical reimbursement account allows the employee to set aside pre-tax dollars to pay for medical, dental, vision-care or other eligible expenses that are not covered by their medical plan. A dependent care reimbursement account allows employees to set aside pre-tax dollars to pay for eligible dependent care expenses. Contact the Human Resources Office for additional information or to enroll.
Public Radio (WMRA-FM)
WMRA contribution forms are sent to each employee during the radio station contribution campaign. This authorizes a deduction amount, specified by the employee, as a donation to the WMRA Radio Station.
Vehicle Registration (Parking) Fees
A payroll deduction program is available to employees to pay parking fees to the University. The annual charge is divided by the number of pay periods in a year. This deduction can be taken on a pre-tax basis.
Other Miscellaneous Deductions
Numerous miscellaneous optional deductions are offered through payroll deductions including but not limited to:
◊ Computer Loans
For more information regarding any benefit or deduction, contact the Human Resources Office.
.234 Establishing and Changing Deductions
All JMU employee deductions will remain in effect until cancelled, in writing to Payroll Services, by the employee or by the established deduction end date.
.240 Direct Deposit of Net Pay
All employees are required, as a condition of employment, to have their pay deposited directly to their bank account. Employees may enroll for direct deposit at anytime in Payroll Services. They should bring a voided check from the applicable bank account with them.
To change account numbers or financial institutions, the employee shall notify Payroll Services and initiate a new Direct Deposit Authorization form. Direct deposit changes may also be made on-line via MyMadison.
An employee can distribute their pay in up to four (4) different bank accounts at financial institutions located anywhere in the United States. Direct Deposit Authorization forms are available from Payroll Services, the Payroll Services forms webpage, or from departments.
.250 Time Lost (Docking)
Classified employees earn sick and annual leave. When the amount of annual or total leave taken exceeds the total amount earned, an employee enters a "time lost" situation, and may have their pay docked. The Human Resources Office will notify the employee, the employee's supervisor, and Payroll Services when an employee enters a "time lost" situation. The amount of lost time is deducted from the employee's normal salary.
.300 Wage Employees
.313 Human Resources Office
.314 Payroll Services
.320 Processing Procedures
NOTE: Contact Payroll Services if the JMU Time Entry panels are NOT available at least two (2) workdays before the deadline for submission to payroll. (A calendar of applicable payroll deadlines is on the Payroll Services webpage.
NOTE: Payroll Services will notify the department if an employee has been deleted from the exceptions panel, by mailing a "Re-submit Memo" to the department. The department should add the hours worked by those employees deleted, to the next pay period’s JMU Time Entry panels in accordance with instructions on the memo.
NOTE: The deadline for time submission is set by Payroll Services and is published on the Payroll Services webpage.
.322 Human Resources
NOTE: Payroll Services will include PAR forms received after the deadline on the next payday. For a complete schedule of all payroll deadlines, see the payroll calendar published on the Payroll Services webpage.
.323 Payroll Services
.330 Payroll Deductions
Social Security (FICA-OASDI and Medicare) Withholding
All wage employees are subject to social security withholding. The Federal Government designates the percentage an employee will have deducted from gross wages. The employer (JMU) automatically deducts the employee amount from gross wages, and contributes a like amount. When an employee's gross earnings reach the FICA wage base ceiling for the calendar year, no further deductions will be made.
Federal and State Tax Withholding
Federal and state tax withholding forms shall be on file in Payroll Services, before any payroll processing. Refer to subsections .920 and .930 for form preparation instructions. The forms are required to establish and change the employee's number of allowances. The number of allowances is used to compute the amount of federal and state income tax withheld from pay.
An employee, who fails to submit forms by the payroll-processing deadline, will be taxed at the highest allowable tax rate: single marital status with zero (0) exemptions.
Blank W-4 (federal) and VA-4 (state) forms are available from Payroll Services, from the Payroll Services forms webpage or from the employing department. Return completed forms directly to Payroll Services.
Optional General Deductions
There are several optional general deductions available to temporary wage employees. These include but are not limited to:
.400 Student Employees
James Madison University offers three (3) student employment programs. These programs allow students employment in a variety of campus activities and functions. They include:
This program is University funded. In order to qualify for employment under this program, eligible candidates shall be degree-seeking undergraduate or graduate students deemed to be making satisfactory academic progress as determined by the Office of Financial Aid and the Student Work Experience Center.
This program is need-based and federally funded. Eligible candidates shall be degree seeking undergraduate or graduate level students deemed to be making "satisfactory academic progress", and have a financial need as established through an analysis of the Free Application for Federal Student Aid (FAFSA).
The Graduate School administers the graduate assistantship program. This program allows for a full-time graduate level student to work up to twenty (20) hours for a University department and receive a fixed stipend for wages and a scholarship towards tuition. Contact the Graduate School for eligibility requirements and more information.
.412 Student Work Experience Center/Graduate School
NOTE: Certain student employees, such as, resident advisors and graduate student assistants, are paid through the salary payroll rather than for actual hours worked.
NOTE: International employees shall report to the Office of International Programs for tax status and visa information, and for the completion of their I-9 form or the On-campus Employment Authorization form. These employees also need to meet with staff from Payroll Services to complete necessary tax forms, as special IRS taxation regulations apply.
.414 Payroll Services
.420 Processing Procedures
.421 Human Resources, Student Work Experience Ctr/Graduate School
.423 Payroll Services
.430 Payroll Deductions
Social Security (FICA-OASDI and Medicare) Withholding
Student employees are exempt from social security withholding while attending JMU as a full-time student and working in a student position.
Federal and State Tax Withholding
Federal and state tax withholding forms shall be kept on file in Payroll Services. The forms are required to establish the employee's number of allowances used to compute the amount of federal and state tax withheld from pay.
Eligible international student employees may be exempt from federal and state taxes based on federal tax treaties with their country. International employees interested should contact Payroll Services or the Office of International Programs.
Blank tax forms are available from Payroll Services or from the employing department.
The employee should complete the federal and state forms at the employing department and returns the forms directly to Payroll Services. Refer to subsections .920 and .930 for form preparation instructions.
.500 Direct Deposit Advice
All employees are required, as a condition of employment, to have their pay deposited directly to their bank account. Employees may enroll for direct deposit at anytime, in Payroll Services. They should bring a voided check from the applicable bank account with them.
To change account numbers or financial institutions, the employee shall notify Payroll Services by initiating a new Direct Deposit Authorization form. Direct deposit changes may also be made on-line via MyMadison.
An employee can distribute their pay in up to four (4) different bank accounts at financial institutions located anywhere in the United States. Direct Deposit Authorization forms are available from Payroll Services, on the Payroll Services forms webpage, or from departments.
.600 Terminations and Resignations
See JMU Policy and Procedures Manual, Policy No. 1314, "Transfer or Separation from Employment" for more information.
.620 Processing Procedures
When a classified staff and/or classified or part-time faculty member ends employment with the University, the supervisor shall immediately complete a termination PAR form. The supervisor should forward the form to the Human Resource Office, immediately, in accordance with Policy No. 1314 mentioned above.
When a temporary wage employee ends employment with the University, the supervisor shall immediately complete a termination PAR form. Forward this form to Human Resources immediately.
Students who held an employment position funded by FWS and ends employment before the termination date listed on their award letter shall notify their hiring department through a resignation letter. The department then notifies the Student Work Experience Center by submitting a separation PAR form.
Students working in positions designated as "Institutional Employment" shall also complete a resignation letter and submit it to their employing department. The supervisor shall complete a termination PAR form and forward to the Student Work Experience Center. The Student Work Experience Center will forward the approved PAR form to Payroll Services.
.700 Child Support, Garnishment, Tax Levy and Tax Lien Deductions
Payroll Services is responsible for complying with court ordered child support, garnishment, tax levy and tax lien demands to withhold money from an employee's pay as directed.
.721 Child Support
Child support is a notice from the Virginia Support Enforcement Division that the University is required (by Virginia code) to deduct a specified amount from an employee's pay. This amount will be deducted from the employee's "Disposable Earnings" and will precede all other liens and garnishments. "Disposable Earnings" is equal to the employee's earnings less deductions required by federal and state laws.
A Garnishment is a court summons, which requires the University (garnishee) to withhold from the employee (defendant) a sum of money as specified on the garnishment summons.
.723 Tax Levy
A tax levy is an Internal Revenue Service demand placed on the University to withhold from the employee (taxpayer) a sum of money as specified on the Notice of Levy on wages, salary and other income.
.724 Tax Lien
A tax lien is a Virginia, state, city or county demand placed on the University to withhold from the employee sums of money as specified on the Notice of Tax Lien and Demand for Payment of State or City/County taxes under Section 58-1010 of the Code of Virginia.
Child support, garnishments, tax levies and tax liens will be deducted, following federal and state guidelines. Child support, garnishments and federal tax liens are deducted immediately from the employee's disposable earnings (gross less FICA, federal and state taxes). There is no limit to the deductible amount for a state tax lien.
.800 Salary Advance Loans
Salary advance loans may be made to classified, temporary, and student employees when a JMU business situation warrants it. Salary advance loans are NOT made on a routine basis or for personal hardship reasons. The Payroll Services Office may approve a salary advance loan, up to the amount of the employee's net pay, when unusual events occur. Payroll Services may also approve a salary advance loan when an employee's net pay is significantly understated due to an error.
NOTE: THE NON RECEIPT OF PAYROLL DOCUMENTS IN THE PAYROLL SERVICES OFFICE IS NOT A VALID REASON FOR A SALARY ADVANCE LOAN.
.820 Processing Procedures
.823 Payroll Services
.900 Forms Preparation and Submission
Certain forms and procedures have been developed to facilitate the payroll process. These forms enable the University Payroll Services Office to obtain pertinent employee information and withholding changes.
.920 Employee Withholding Allowance Certificate (Federal W-4)
.921 Forms Preparation Instructions
Following are detailed instructions for the preparation of the employee's Withholding Allowance Certificate (Federal W-4).
PLEASE TYPE OR PRINT ALL INFORMATION ENTERED ON THE FORM.
The employee shall initial all changes, including strikeouts or "white-outs", they make on this form.
.922 Making Changes to Exemptions
Follow these procedures to make changes to the Employee's Withholding allowance Certificate (Federal W-4).
.930 Virginia Employee's Withholding Certificate (Form VA-4)
.931 Forms Preparation Instructions
Following are detailed instructions for the preparation of the Virginia Employee's Withholding Certificate (Form VA-4).
PLEASE TYPE OR PRINT ALL INFORMATION ENTERED ON THE FORM.
The employee shall initial all changes, including "strike outs" or "white-outs", they make on this form.
.932 Changes to Exemptions
Follow these procedures to make changes to the Virginia Employee's Withholding Certificate (Form VA-4).
NOTE: On-line MyMadison changes should follow the deadlines outlined in the Direct Deposit and W-4/VA-4 Effective Table located on Payroll Services webpage under Calendar and Deadlines. Additionally, paper forms are not required, if changes to the employee's existing tax withholding status was completed using the on-line self-service feature of MyMadison.
.940 JMU Time Entry
This form is a computer produced panel required to report the total hours worked by each temporary wage and student employee each pay period.
.942 How to Access to JMU Time Entry Panels
After receipt of all employment documents, Payroll Services will provide the JMU Time Entry panels to departments for their employees. In order to be able to access these time entry panels, an individual must be authorized on the department’s signature authorization card, must submit an IIS Access Control form requesting HRMS access, and complete JMU Time Entry training.
.943 How to Submit Completed Panels
Completed and certified panels will automatically be uploaded by Payroll Services. Approved time entry panels are to be completed by the dates specified on their Payroll Calendar.
.944 Panel Preparation Instructions
The following are detailed instructions for preparing the JMU Time Entry panels.
.950 Employee Direct Deposit Authorization
This form is required to document the automatic deposit of an employee's net pay to a designated bank account.
.952 Where to Obtain Blank Forms
.953 Where to Send Completed Forms
Forward completed forms to Payroll Services for verification and to enter into the HRMS database. Forms are not required if changes to the employee's existing direct deposit were completed using the on-line self-service feature of MyMadison.
.954 Forms Preparation Instructions
The following are detailed instructions for the preparation of the Direct Deposit Authorization form.
|5010||Moving and Relocation
||Payroll Services (5000)||
When the University chooses to pay moving and relocation expenses, it must do so within the limitations and restrictions provided in State Moving and Relocation regulations. This section includes the rules, guidelines, specific limitations and restrictions when making third party payments and reimbursing employees for relocating their household to accommodate James Madison University. It provides information to help in moving and relocating employees and their families as quickly as possible at a fair and reasonable cost to the University.
State Moving and Relocation Regulations do not require the University to pay moving and relocation expenses. The University may restrict the amount paid to a lesser sum than the maximum allowed by the regulations. Restrictions may be either in total or by individual category.
The amount allowed for moving and relocation expense is determined by the University based on funding available, not on the amounts listed in this procedure.
James Madison University follows the Internal Revenue Service (IRS) regulations. Beginning January 1, 1994, the University included taxable moving and relocation reimbursements in the employee's gross income on the Federal W-2 form. The University deducts the appropriate payroll taxes before making payment and recording the excess reimbursement in accounting and payroll records.
James Madison University employees should always use discretion when incurring and reporting payment of public funds. Moving and relocation payments are open to the public and must sustain the test of public review. Realizing the need to control individual situations, the University will apply these procedures fairly and competitively. The University reviews thoroughly all reimbursement and payment requests before processing them for payment.
Payroll Services processes all moving and relocation reimbursement requests through a special payroll process. This office also approves payments to common carriers for moving and relocation transportation costs. The Office of Accounts Payable processes these documents for payment. The University will not approve payments for moving and relocation costs through other processes, such as petty cash.
The University does not issue advances (loans) to cover moving expenses before the move, but may issue an advance upon receipt and approval of forms and required documentation. The advance is to cover payments made by the employee while awaiting receipt of the reimbursement check.
Address questions concerning these procedures to Payroll Services, Telephone x88034.
The eligibility of any employee for reimbursement of moving and relocation expenses is at the discretion of James Madison University. James Madison University has the authority to approve or disapprove payments for relocations. Approval or disapproval is subject to University, State and Federal regulations. The University will notify employees of any limitations of scope or University policy that may affect the eligibility for reimbursement.
The employee must be a salaried employee of James Madison University in a regular full-time position. Employees in a quasi–full time position (32–39.9 hours per week) are not eligible for moving and relocation reimbursement.
To be eligible for reimbursement, the employee's relocation must meet all of the following conditions:
At Employer's Request
Relocation must be at the request of the employing agency (James Madison University) and for the good of the Commonwealth as determined by the Agency Head.
The University will not reimburse expenses when the relocation is at the request of, or for the convenience of the employee.
Effective January 1, 1994, 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. That is, the employee's commuting distance must have increased by at least fifty (50) miles one way. For example, if the original commuting distance from the former residence to the old work site was 10 miles, the new work site must be at least sixty (60) miles. That is, ten (10) miles, original commuting distance, plus the fifty (50) mile increase from the former residence.
Exceptions may be considered by the State Comptroller for relocations which require the employee to establish new residence in a specific geographical location when commuting distance is not increased by 50 miles.
The employee must satisfactorily maintain employment on a regular full-time basis with James Madison University for at least one year. The year begins on the date that the employee starts work regularly at the new location. The Employee Moving and Relocation Tenure Agreement documents the tenure condition according to subsection .470, "Employee Moving and Relocation Tenure Agreement" of this section.
.400 Reimbursement Limitations
.410 Expenses Incurred and Supported
All payments for reimbursement must be reasonable, necessary, and incurred after the employee executes an Employee Moving and Relocation Tenure Agreement. The employee must submit all reimbursement requests to Payroll Services within twelve (12) months of the beginning date of employment at the new location. The Agency Head or Designee may approve a reimbursement request for allowable expenses after the twelve (12) months (up to an additional twelve (12) months) where James Madison University requires the transfer of an employee and the personal circumstances, of the employee, cause the delay.
.411 House Hunting Expenses (Pre-move Travel) – TAXABLE
House hunting expenses include the following for employee and spouse while traveling:
◊ Cost of transportation (including automobile rental)
Travel expenses for house hunting purposes are eligible for reimbursement. House hunting must occur prior to the first day of work. Refer to Section 4215, "Travel," for additional information. Moving and relocation regulations limit reimbursement for house hunting to three (3) trips for the employee and three (3) trips for the spouse. The University will reimburse a maximum of fifteen (15) nights of lodging. A night of combined lodging for both the employee and spouse counts as one night.
.412 Temporary Quarters – TAXABLE
The employee may claim reimbursement for reasonable lodging or rent expense. Regulations allow up to ninety (90) days from the first day of work at the new location. Reasonable residential parking fees will be reimbursed during the 90 days of temporary quarters. Cost for hookup of utilities at temporary quarters is not reimbursable. The employee may claim reimbursement for meal expenses for the first thirty (30) days of residence in temporary quarters. Such expenses must be reasonable, necessary, and according to State Travel Regulations. Refer to Section 4215, "Travel," for additional information.
.413 Home Sale – TAXABLE
Actual expenses of real estate commissions on the sale of the former principal residence are reimbursable and the usual closing and legal costs incurred in the sale of that residence. Moving and relocation regulations limit reimbursement for home sale expenses to $11,000 (minus the employer FICA tax), as outlined in subsection .420 "Total Reimbursement". The employee must include a copy of the signed "Closing Statement," as supportive documentation when requesting reimbursement. The closing attorney, the realtor, or the seller may sign the "Closing Statement." Listed below are "reimbursable" and "non-reimbursable" expenses related to the sale of a principal residence.
The following expenses, related to the sale of the principal residence due to moving and relocation are reimbursable:
The following expenses, related to the sale of the principal residence due to moving and relocation are not reimbursable:
.414 Cancellation of Lease – TAXABLE
The settlement of a lease on the former residence is reimbursable and must be due to moving and relocation. The Employee must include a copy of the signed lease and the canceled check or receipt for the lease cancellation payment.
.415 Travel (Move to New Job Location and House Hunting) – TAXABLE AND NON–TAXABLE
Travel expenses related to moving and relocation are eligible for reimbursement according to State Travel Regulations. Refer to Section 4215, "Travel," for additional information. Moving and relocation regulations limit reimbursement to expenses for:
The initial trip, after employment, to the new work location (TAXABLE)
Note: Mileage rate over 23.5 cents per mile is taxable.
Travel reimbursement does not include automobile rental, except house hunting purposes.
.416 Transportation of Household Goods and Personal Effects – NON–TAXABLE
The actual costs paid for common carrier transportation of the employee's household goods and personal effects are reimbursable. Reimbursement covers transportation costs from the former principal residence to the residence at the new work location. Moving and relocation regulations allow the actual costs, in addition to the $11,000 limitation (minus employer FICA tax), if the employee uses common carrier transportation. Refer to subsection .420, "Total Reimbursement," for additional information.
Employees must get three (3) bids for common carrier transportation. The employee should use the lowest of the three (3) bids for moving personal effects from the former residence to the new residence. Before making a formal commitment to use the common carrier, the employee must provide copies of the three (3) bids to James Madison University. Send the copies to Payroll Services, MSC 5706. Payroll Services will notify the employee of the common carrier chosen.
When at all possible, the employee should use a common carrier based in Virginia. When outside the Commonwealth of Virginia, employees should contact Virginia common carriers to ask if they can match the bid submitted by the out–of–state firms.
The University will issue a letter, if required by the common carrier, to confirm the amount approved for moving expenses.
The University will issue a check directly to the common carrier when the bill is received. Please note that the University will not reimburse valuation charges above what is normally allowed in the contract (Bulk Rate coverage). If the employee chooses additional valuation, they must pay that fee directly to the common carrier.
If employees choose to move themselves, the University will include the actual costs allowed in the $11,000 limitation (minus employer FICA tax). The following actual costs are reimbursable with appropriate supporting documentation:
Moving vehicle rental – moving van, truck, trailer, hand truck, or other appropriate moving equipment, vehicles, and supplies are reimbursable. Purchase of such a vehicle or equipment is not reimbursable. The purchase of moving supplies, such as packing paper, boxes or cartons, is reimbursable. The cost of such purchases must not exceed $200. Gas used by a rental truck during the move is reimbursable. The employee must get original receipts for all of the expenses listed. Refer to Section 4215, "Travel," for additional information and restrictions concerning the use of rental vehicles.
Labor used during the move – Moving and relocation regulations limit reimbursement to a reasonable hourly wage. The maximum total allowed is $250. Labor provided by the employee or immediate family member(s) is not reimbursable. The employee must get a receipt from the individual employed, showing the amount received and the signature of the recipient.
Mileage – Employees may request reimbursement for use of a personally owned or borrowed moving vehicle. Reimbursement for this expense is at the current personal vehicle mileage rate. This rate is available from the Office of Accounts Payable, Telephone x86265. Moving and relocation regulations will not cover reimbursement for the "rental value" of the personally owned vehicle. The expense of a car or truck with a trailer in tow is reimbursable at the current personal vehicle mileage rate. If the mileage rate exceeds the IRS allowance (currently 23.5 cents per mile) the difference is taxable.
Tolls – The amount paid for tolls during the move is reimbursable. Include the name of the facility (road, bridge or tunnel) on the reimbursement request.
.417 Storage of Household Goods and Personal Effects – NON–TAXABLE
Expenses for a maximum of thirty (30) days temporary (in transit) storage of household goods are reimbursable. Regulations allow reimbursement if the employee cannot move directly into the new residence. The $11,000 limitation (minus employer FICA tax) does not include these expenses. Refer to .420, "Total Reimbursement," for additional information.
.418 Home Purchase (TAXABLE)
Certain expenses related to the purchase of a home, incurred by an employee relocating to a new work place, may be reimbursable. These expenses are subject to the $11,000 maximum limitations. (minus employer FICA tax) To qualify for reimbursement of these expenses, the relocated employee must have owned a primary residence at his prior location, which due to relocation resulted in disposal of the residence. The University will not reimburse the employee for these expenses to purchase a second residence, investment, business, or resort/vacation property at the new work site. The following expenses related to a home purchase may be reimbursable:
All of the preceding expenses must relate to the purchase of the primary residence. The employee must purchase (close) on the home within twelve (12) months after the official starting date of employment. Moving and relocation regulations require documentation clearly identifying these expenses.
The University may approve up to an additional twelve (12) months for extenuating circumstances. The employee must document the extenuating circumstances for review and approval by the Agency Head. Payroll Services may present extensions after this period to the State Controller, for review. This review may result in an extension being granted if warranted.
Expenses related to the purchase and replacement of a primary residence, not specifically listed above, are not reimbursable. Examples of some expenses that are not reimbursable are:
.419 Non-Reimbursable Expenses
The University approves only those expenses specifically allowed in State Moving and Relocation Regulations for reimbursement. Regulations do not consider the following as moving and relocation expenses:
.420 Total Reimbursement
State Moving and Relocation Regulations establishes the total dollar limit of $11,000 (minus the employer FICA tax) for gross reimbursement for all moving and relocation expenses other than common carrier transportation and 30 day storage of household goods. The limit includes all gross reimbursements (that is, actual reimbursements received by the employee and payments to third parties for the employee). The limit also includes any necessary employee payroll taxes paid that relate to the reimbursements. Regulations do not place a maximum limit on expense reimbursement or costs related to the use of a common carrier for transportation and 30 days storage.
.430 Employee's Spouse
If the employee's spouse is a State employee and otherwise eligible for moving and relocation expenses, the University will reimburse expenses to only one employee and only to move the primary household to the new location.
The University determines the availability of funding for moving and relocation expenses and related taxes, if any. The signatory authority for the account charged must approve all moving and relocation payments.
.450 Prospective Employment
Pre-employment expenses for travel, testing, interviewing, and related activities, incurred by or for a prospective employee before employment, are travel expenses not moving and relocation expenses.
The University may reimburse travel expenses of prospective employees, incidental to an employment interview. Departments should request reimbursement of pre-employment expenses separate from moving and relocation expenses. These expenses are reimbursable under State Travel Regulations, in effect at the time such expenses occur. Refer to Section 4215, "Travel" for complete information.
.460 Mileage - Travel
Reimbursement for mileage costs may not exceed the amount calculated using the state mileage rate in effect at the time of travel. The rate is available from the Office of Accounts Payable, Telephone x86265. All mileage reimbursements over the amount the IRS allows (currently 23.5 cents per mile) as a deduction are taxable.
.470 Employee Moving and Relocation Tenure Agreement
Any employee requesting reimbursement or payment for moving and relocation expenses must execute an Employee Moving and Relocation Tenure Agreement. This "Tenure Agreement" relates only to moving and relocation. The "Employee Moving and Relocation Tenure Agreement" is not an employment contract. The employee must sign this agreement with James Madison University before incurring any moving and relocation expenses. The agreement stipulates:
.480 Reimbursement Procedures
The University will not make reimbursements to employees for moving and relocation expenses on an Accounting Voucher, Travel Expense Reimbursement Voucher or Request for Petty Cash Check. Moving and relocation regulations require the University to make reimbursements to the employee for moving and relocation expenses through the regular payroll process.
All reimbursements for lodging, meals, and mileage must be actual, reasonable and necessary. Payments must follow the guidelines of Section 4215, "Travel". Regulations require the use of a Travel Expense Reimbursement Voucher to itemize expenses. The University does not submit the voucher for payment, but submits it as supporting documentation with the regular semi-monthly payroll.
The employee must complete an Employee Moving and Relocation Expense Summary. Attach the summary with required receipts and detailed supporting documentation to the Travel Expense Reimbursement voucher. Refer to Subsection .720, "Employee Moving and Relocation Expenditure Summary," for form preparation and submission instructions.
Moving and relocation regulations require the University to make third-party payments only to common carriers. The University will pay the common carrier for transportation and temporary storage costs of the employee's household goods and personal effects. James Madison University will make no other third-party payments for moving and relocation expenses. The employee/department must complete an Employee Moving and Relocation Expense Summary and an Accounting Voucher. Submit the summary and voucher, with original receipts and supporting documentation to Payroll Services.
Payroll Services reviews all moving and relocation payment requests before obtaining the approval signatures of the Senior Vice President for Administration and Finance and the President.
.500 Reimbursement Responsibilities
.520 Department Head
.530 University Controller
.600 Processing Procedures
This subsection provides detailed procedures for processing reimbursements to employees and payments to third parties for moving and relocation expenses.
.610 Reimbursement to Employee
Moving and relocation regulations require employees to submit the Employee Moving and Relocation Expense Summary form and original receipts with each claim for reimbursement or request for payment. Employees submitting claims should be aware of the payment status of each claim submitted.
.613 Payroll Services
.620 Payments to Third Parties
State moving and relocation regulations restrict third party payments to commercial moving companies. Regulations do not allow any other third-party payments.
.623 Payroll Services
.624 Accounts Payable
.700 Forms Preparation and Submission
.710 Employee Moving and Relocation Tenure Agreement
Any employee requesting reimbursement of moving and relocation expenses must execute this agreement before incurring any moving and relocation expenses.
.712 Where to Obtain Blank Forms
An electronic blank form is available online.
.713 Number of Copies
Complete one copy.
.714 Where to Send Completed Copies
Send original copy with the initial Employee Moving and Relocation Expense Summary form to the Payroll Services.
.715 Form Preparation Instructions
This subsection provides detailed instructions for preparation of the Employee Moving and Relocation Tenure Agreement. Enter the following information only, leave all other areas blank.
.720 Employee Moving and Relocation Expense Summary
Moving and relocation regulations require this form to summarize employee moving and relocation expenses. The regulations also require a separate form for each reimbursement claim or payment to a third party.
.722 Where to Obtain Blank Forms
An electronic blank form is available available online.
.723 Number of Copies
Complete one copy.
.724 Where to Send Completed Forms
Send the Original copy to Payroll Services.
.725 Required Supporting Documents
A completed Employee Moving and Relocation Tenure Agreement signed by the employee.
.726 Form Preparation Instructions
This subsection provides detailed instructions for completing the Employee Moving and Relocation Expense Summary form. Enter the following information only; leave all other areas blank.
.800 IRS Reporting and Qualified Moving Expenses
.810 IRS Reporting
Applicable Federal and State Laws require the University to include certain reimbursements to relocated employees in the employee's gross income, and to exclude certain relocation expenses. Under Federal guidelines, expenses that constitute qualified moving expense reimbursements should not be considered as taxable income. Expenses not qualified are taxable and included on the employee's W-2 tax withholding statement. Each employee is ultimately responsible for proper reporting and tax treatment of any reimbursements to the IRS for each tax year.
.820 Qualified Moving Expenses
This subsection provides general information on the possible tax treatment of the reimbursements and payments received because of relocation. The employee should consult a tax advisor or devote personal time to the detailed review of tax regulations to determine the effects on personal income tax liability. Additionally, IRS Publication 521, "Moving Expenses," is available upon request from the IRS.
Passage of the 1993 Revenue Reconciliation Act modified the moving expense deduction for expenses incurred after December 31, 1993. The new tax law defines "Moving Expenses" as the reasonable costs of (1) moving and storage of household goods and personal effects from the former residence to the new residence (this includes the common carrier), and (2) traveling (including lodging during travel) from the former residence to the new place of residence. Qualified moving expenses do not include any expenses for meals.
Under Federal guidelines, the following expenses are not qualified moving expenses:
Qualified moving expenses are excludable from gross income and wages for income and employment tax purposes when paid for by the Agency or Institution. Under the IRS guidelines, the University must add reimbursement of expenses that are not qualified moving expenses to the employee's income as taxable income. Appropriate Federal and State income taxes are withheld.
.900 Summary of Moving and Relocation Expense Reimbursement Limitations
Total Reimbursement – $11,000 (minus the employer FICA tax)
Moving and relocation regulations limit maximum reimbursement to $11,000 (minus the employer FICA tax). This limit excludes the costs of common carrier transportation, and storage of household goods and personal effects.
House hunting expenses are subject to State Travel Regulations limits (Refer to Section 4215, "Travel") for meals and lodging. The maximum reimbursement of $11,000 (minus the employer FICA tax) includes house–hunting expenses.
Expenses for temporary quarters are subject to limits documented in State Travel Regulations (Refer to Section 4215, "Travel") for meals and lodging. The maximum reimbursement of $11,000 (minus employer FICA tax)includes temporary quarters expenses.
The maximum reimbursement of $11,000 (minus employer FICA tax) includes home sale expenses.
Transportation of Household Goods and Personal Effects
Moving and relocation regulations allow the actual cost of transporting household goods and personal effects if the new employee uses common carrier transportation. The regulations allow actual costs beyond the maximum reimbursement of $11,000 (minus employer FICA tax).
Purchase of Moving Supplies – $200
Maximum reimbursement of $11,000 (minus employer FICA tax) includes the cost of moving supplies.
Labor Used During Move – $250
Maximum reimbursement of $11,000 (minus employer FICA tax) includes labor used during the move.
Storage of Household Goods and Personal Effects – Maximum of 30 days.
In–transit storage of household goods is reimbursable. Regulations allow the actual costs beyond the maximum reimbursement of $11,000 (minus employer FICA tax).
The maximum reimbursement of $11,000 (minus employer FICA tax) includes home purchase expenses.