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Finance Procedures Manual

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Payroll Services (5000) Procedures

Procedure Number Procedure Name Category Content
5005 Payroll Payroll Services (5000)

.100 General

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

.210 Responsibilities

.211 Employee

  • Apply for employment, using Joblink, through the University's Human Resources Office.
  • Authorize the Public Safety Office to conduct a background check when requested by the employing department.
  • Complete all applicable personnel/payroll employment forms, including the Direct Deposit Authorization form, federal and state tax forms, and I-9 form verification.
  • Verify paycheck amounts using MyMadison

.212 Department

  • Initiate Human Resources' Onboard form and the Personnel Action Request (PAR) form, or appropriate employment forms, for the appointment of full-time classified staff and faculty employees.
  • Forward all documents expeditiously to the Human Resources Office.

.213 Human Resources

  • Complete the Onboard process, which includes I-9 completion, tax forms and direct deposit form completion for newly hired employees.
  • Receive and process PAR forms or appropriate employment forms for the appointment of full-time classified staff and faculty employees.
  • Enroll employees in elected benefit and voluntary payroll deduction programs.
  • Forward all processed PAR forms daily, or appropriate employment forms, tax forms, Direct Deposit Authorization forms, and other payroll deduction forms to Payroll Services.

.214 Payroll Services

  • Receive and process all approved PAR forms or appropriate employment forms, for the appointment of full-time classified staff and faculty employees.
  • Receive and process all tax forms, Direct Deposit Authorization forms, and deduction forms.
  • Record appropriate data in the HRMS database.
  • Process payroll and direct deposit bank interface.

.220 Processing Procedures

.221 Department

  • Complete Human Resources' Onboard form and process PAR forms, or appropriate employment forms, for the appointment of full-time classified and faculty employees.
  • Forward completed and signed forms, to the Office of Human Resources daily.

.222 Human Resources

  • Complete the Onboard process, which includes I-9 completion, tax forms, and direct deposit form completion for newly hired employees.
  • Receive and process approved PAR forms, or appropriate employment forms, for the appointment of full-time classified and faculty employees.
  • Forward PAR forms daily, or appropriate employment forms, with all supporting documentation to Payroll Services.

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.

  • Forward daily, all employee federal and state tax withholding forms, elected benefit and voluntary deduction information, and Direct Deposit Authorization forms to Payroll Services.
  • Process necessary documents to enroll employees in elected Health Benefits Program, Virginia Retirement System, Virginia Sickness and Disability Program, Retirees Health Credit Program and any other voluntary payroll deduction programs.

.223 Payroll Services

  • Receive and process all approved PAR forms, or appropriate employment forms, employee federal and state tax withholding forms, elected benefit and voluntary deduction information, and Direct Deposit Authorization forms.
  • Record appropriate information in the HRMS database.
  • Calculate payroll and run the bank interface to authorize direct deposit information.
  • Forward payroll data to Accounts Payable to update the General Ledger.

.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.

Refer to subsections .920 and .930, for federal and state tax withholding form preparation instructions.

.232 Paid Benefits

Retirement

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.

Athletic Tickets

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.

Disability Insurance

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.

Health Insurance

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
◊  VEGA (Virginia Governmental Employee Association)
◊  VPEP (Virginia Prepaid Education Program)
◊  Roth IRA’s
◊  JMU Meal Plan

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

.310 Responsibilities

.311 Employee

  • Apply for employment, using Joblink, through the University's Human Resources Office.
  • Authorize the Public Safety Office to conduct a background check when requested by the employing department.
  • Complete all applicable personnel/payroll employment forms, including the Direct Deposit Authorization, federal and state tax forms, and I-9 verification.
  • Verify paycheck amounts using MyMadison.

.312 Department

  • Initiate Human Resources' Onboard form.
  • Complete PAR form, or appropriate employment forms, to initiate hiring of wage employees.
  • Maintain accurate records of hours worked by wage employees.
  • Complete and process the payroll-provided JMU Time Entry panel.
  • Direct international employees to the Office of International Programs for tax status and visa information. The International employee will then be directed to HR for completion of their I-9 or On-campus Employment Authorization form.
  • Direct international employees to make an appointment with Payroll Services to complete needed international tax forms, as special IRS taxation regulations apply.

.313 Human Resources Office

  • Complete the Onboard process, which includes I-9 completion, tax forms, and direct deposit form completion for newly hired employees.
  • Receive and process PAR forms, or appropriate employment forms, for employment of wage employees.
  • Forward all completed and approved PAR forms, or appropriate employment forms, tax forms, Direct Deposit Authorization form and deduction forms to Payroll Services.

.314 Payroll Services

  • Receive and process all PAR forms, or appropriate employment forms, for wage employees.
  • Record appropriate data in the HRMS database.
  • Process payroll and direct deposit bank interface.
  • Provide JMU Time Entry panels to departments for temporary wage employees that have a properly completed employment contract or PAR form.
  • Return all inaccurate and incomplete forms to the originating department for correction.

.320 Processing Procedures

.321 Department

  • Complete and process all PAR forms, or appropriate employment forms, for hiring wage employees.
  • Forward, expeditiously, all completed and approved PAR forms, or other employment forms, to the Human Resources Office.
  • Access JMU Time Entry panels from Payroll Services.

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.

  • Maintain accurate records of hours worked by wage employees on the Student and Wage Employee Time Sheet.  If a substitute form is used for maintaining accurate records of time worked, please ensure the form contains the same information found on the Student and Wage Employee Time Sheet and at the very minimum:
A record of the number of hours worked per calendar day, per calendar week for each employee
Verification by the employee that the hours recorded are accurate, this can be accomplished either by a full signature, not initials, on the hours worked document or by an electronic time clock system that the employee is required to clock in and out of using a unique password or ID badge each day they work  (Please note that when extenuating circumstances prevent departments from obtaining the employee's signature, the Department of Labor still requires the University to pay for any work performed.)
Verification by the supervisor or someone in the department that has time sheet approval authority as designated by the University's signature authorization process.  This can be accomplished either by a full signature, not initials, on the hours worked document for each worker or by maintaining a copy of the department's JMU approved time entry panel from the HRMS system.
Retain original signed and approved hours worked documents for each employee for auditing purposes.
  • Complete the JMU Time Entry panels in accordance with instructions in subsection .940.

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

  • Complete the Onboard process, which includes I-9 completion, tax forms, and direct deposit form completion for newly hired employees.
  • Receive and process all PAR forms or other employment forms for wage employees.
  • Process necessary documents for enrolling employees in voluntary deduction programs.
  • Forward daily, all PAR forms, or other employment documents, employee federal and state tax withholding forms, deduction forms, and Direct Deposit Authorization forms to Payroll Services.

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.

  • Enter applicable position information into the HRMS database.

.323 Payroll Services

  • Receive and process all completed PAR forms or other appropriate employment forms, tax forms, and Direct Deposit Authorization forms from Human Resources.
  • Enter applicable employment information into the HRMS database.
  • Provide JMU Time Entry panels to departments as set forth in the payroll calendar, located on the Payroll Services webpage.
  • Upload and process all hours submitted via the JMU Time Entry System by departments.
  • Enter properly submitted and approved hours worked into the HRMS database.
  • Notify the department, by memo, if an employee added to the JMU Time Entry Exceptions panel cannot be paid. (The memo will indicate the reason for non-payment.)
  • Calculate the payroll and run an interface to the bank to authorize direct deposit of pay.

.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:

  • Foundation
  • Duke Club
  • JMU Combined Charitable Contribution
  • JMU Flex Account
  • Athletic Tickets
  • Tax Shelter Annuities
  • WMRA Public Radio
  • Vehicle Registration Fees
  • VEGA
  • Virginia Prepaid Education Program
  • Roth IRA’s

.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:

  1. The Institutional Employment Program

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.

  1. The Federal Work Study Program (FWSP)

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).

  1. Graduate Assistantships

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.

.410 Responsibilities

.411 Student

  • Apply for Federal Work-Study (FWS) by completing the Free Application for Federal Aid form (FAFSA).
  • Apply for institutional employment on-line via JobLink.
  • Apply for graduate assistantships through departments offering the assistantship in coordination with the Graduate School.
  • Complete appropriate tax and I-9 forms at the employing department. Refer to subsections .920 and .930 for federal and state tax form preparation instructions.
  • International student employees shall see the Office of International Programs for tax status and visa information.  The Office of International Programs will complete their I-9, directing the completed form to the Student Workforce Experience Center.  International student employees shall setup an appointment with Payroll Services to complete needed international tax forms, as special IRS taxation regulations apply.
  • Sign the student time log weekly, to attest that they performed the work for the number of hours recorded and on the dates indicated.
  • Verify paycheck amounts using MyMadison.

.412 Student Work Experience Center/Graduate School

  • Assist departments in locating student employees for University employment.
  • (The Graduate School approves graduate assistantships based on availability and confirmation that the employee meets qualifications.)
  • Receives and files all I-9 forms for student employees. Updates I-9 data-base files and modifies Federal Work-Study (FWS) awards as necessary.

.413 Department

  • Advertise department employment opportunities, interview candidates, and process the PAR forms.
  • Forward approved employment documents to the Student Work Experience Center or the Graduate School for approval.
  • Maintain an adequate supply of applicable tax and direct deposit forms. Assist students in properly completing tax forms in accordance with subsections .920 and .930.
  • Review and forward completed tax and direct deposit forms to Payroll Services.
  • Assure the accurate preparation and timely submission of student payroll documents to Payroll Services.
  • Maintain accurate records of hours worked by student employees on internal time logs.
  • Record the number of hours worked by each student employee in the JMU Time Entry panel provided by Payroll Services.
  • Ensure that the JMU Time Entry panel is properly authorized. (The approval attests that each employee worked the number of hours indicated.)

NOTE: Certain student employees, such as, resident advisors and graduate student assistants, are paid through the salary payroll rather than for actual hours worked.

  • Complete the appropriate I-9 form and forward to the Student Work Experience Center.

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

  • Provide applicable tax and direct deposit forms to departments.
  • Process all employment documents received from the Student Work Experience Center.
  • Provide to departments, access to the JMU Time Entry panels listing all student employees for whom PAR forms have been received and processed by Payroll Services.
  • Notify the department, by a Student/Wage Resubmit Memo, if employees added to the JMU Time Entry Exceptions panels cannot be paid.
  • Calculate the payroll and run an interface to the bank to authorize direct deposit of pay.

.420 Processing Procedures

.421 Human Resources, Student Work Experience Ctr/Graduate School

  • Approve PAR forms received from departments.
  • Send approved graduate assistantship contracts to Payroll Services for processing.
  • Receive and file I-9 forms for all student employees. Establish student I-9 information in the I-9 database file.

.422 Department

  • Assist student employees with preparation of all appropriate tax and direct deposit forms in accordance with instructions in subsections .920 and .930.
  • Complete PAR forms and forward daily to the Student Work Experience Center.
  • Review completed tax and direct deposit forms before forwarding to Payroll Services to ensure correctness.
  • Maintain accurate records of hours worked by hourly employees on the Student and Wage Employee Time Sheet.  If a substitute form is used for maintaining accurate records of time worked, please ensure the form contains the same information found on the Student and Wage Employee Time Sheet and at the very minimum:
A record of the number of hours worked per calendar day, per calendar week for each employee
Verification by the employee that the hours recorded are accurate, this can be accomplished either by a full signature, not initials, on the hours worked document or by an electronic time clock system that the employee is required to clock in and out of using a unique password or ID badge each day they work  (Please note that when extenuating circumstances prevent departments from obtaining the employee's signature, the Department of Labor still requires the University to pay for any work performed.)
Verification by the supervisor or someone in the department that has time sheet approval authority as designated by the University's signature authorization process.  This can be accomplished either by a full signature, not initials, on the hours worked document for each worker or by maintaining a copy of the department's JMU approved time entry panel from the HRMS system.
Retain original signed and approved hours worked documents for each employee for auditing purposes.
  • Access JMU Time Entry panels from Payroll Services.
  • Complete the time entry in accordance with instructions provided in subsection .940.
  • Approve the JMU Time Entry panels by the scheduled deadline as listed on the Payroll Services webpage.

.423 Payroll Services

  • Receive from the Student Work Experience Center or the Graduate School the PAR form or Assistantship Contract.
  • Review the employment documents and the tax forms for accuracy.
  • Enter applicable information from the completed documents into the HRMS database.
  • Provide JMU Time Entry panels to the departments.
  • Upload the approved time entry panels from the departments and review for accuracy and completeness.
  • Enter properly submitted time worked into the HRMS database. Notify the department by memo if an employee, added to the JMU Time Entry Exceptions panel, cannot be paid. The memo (referred to as a "Resubmit Memo") will state the reason for non-payment. Complete the pay generation process for student employees and run the interface to the bank to authorize direct deposit.

.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

.510 General

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

.610 General

See JMU Policy and Procedures Manual, Policy No. 1314, "Transfer or Separation from Employment" for more information.

.620 Processing Procedures

.621 Faculty/Staff

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.

.622 Temporary

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.

.623 Student

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

.710 General

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.

.720 Definitions

.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.

.722 Garnishment

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.

.730 Procedure

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

.810 General

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

.821 Employee

  • Contact their supervisor or department payroll designee as soon as possible when they need a salary advance.
  • Pick up the salary advance check from the University cashier on the designated day, as given by a Payroll Services staff member.

.822 Department

  • Determine the need or cause that justifiably warrants a salary advance.
  • Present in writing, a request to Payroll Services, with justification or cause.
  • Provide the employee's name, HRMS ID number, number of hours (if applicable) and rate of pay.
  • Advise the employee of the appropriate time to pick up the advance check.

.823 Payroll Services

  • Assure that appropriate supporting documentation has been received.
  • Determine the propriety of the request and verify that the requested amount does not exceed anticipated earnings on the next paycheck.
  • Approve/disapprove request. Payroll Services Director or designee shall also approve the salary advance loan.
  • Process a salary deduction, from the employee's next pay, to repay the advanced amount.

.824 UBO

  • Issue the advance to the employee.
  • Retain a copy of the Salary Advance Accounting Voucher, reflecting both the advance and its repayment for audit purposes.

.900 Forms Preparation and Submission

.910 General

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.

  Type or Print Full Name: Enter the employee's name EXACTLY as it appears on their Social Security Card.
  Social Security Number: Enter the employee's social security number, EXACTLY as it appears on their Social Security Card.
  Home Address: Enter the employee's permanent home address.
  Marital Status: Check the appropriate box.
  If Your Last Name Differs: Check this box if your name differs from the name on your Social Security Card.
  Line 5: If "0" is entered on line 5 and "Single" box is checked in # 3, the maximum amount of tax will be withheld. Leave this line blank if claiming "Exempt" in Line 7, below.
  Line 6: Use this line to have additional federal tax withheld than would be withheld by using the tax withholding tables. Contact Payroll Services for assistance
  Line 7: If an employee wishes to claim "Exempt," (i.e. no tax is to be withheld), they shall meet all conditions. If the employee meets all conditions, write "Exempt" in the blank space provided to the right of the small arrow.
  Signature: The employee's signature as it appears on their Social Security Card.
  Date: Enter the date signed.

 

.922 Making Changes to Exemptions

Follow these procedures to make changes to the Employee's Withholding allowance Certificate (Federal W-4).

  • Obtain a blank form from the department, Payroll Services or the Payroll Services forms webpage.  Changes can also be made on-line via MyMadison for all "non-exempt" tax withholding claims. 
  • Complete the form in accordance with the instructions outlined in subsection .920 above. This form may be changed as often as is necessary as desired by the employee.
  • Return the completed form directly to Payroll Services. Forms received (6) working days before payday will have changes implemented for that payday.

.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.

  Type or Print Full Name: Enter the employee's full name EXACTLY as it appears on the Social Security Card.
  Social Security Number: Enter the employee's social security number EXACTLY as it appears on the Social Security Card.
  Home Address: Enter the employee's permanent home address.
  Line 1: Enter the total number of exemptions claimed.
  Line 2: Use this line to have additional state tax withheld than would be withheld by using the tax withholding tables. Contact Payroll Services for assistance.
  Line 3: Mark this box if an employee can certify that they are not subject to Virginia withholding. If this box is marked, no amounts should be entered on Lines 1 or 2.
  Line 4: Mark this box if an employee can certify that they are not subject to Virginia withholding because they meet the conditions set forth under the Service-member Civil Relief Act. If this box is marked, a copy of the employee's spousal military identification card must be attached. Additionally, no amounts should be entered on Lines 1 or 2.
  Date: Enter date signed.
  Signature: The employee's signature as it appears on their Social Security Card.

 

.932 Changes to Exemptions

Follow these procedures to make changes to the Virginia Employee's Withholding Certificate (Form VA-4).

  • Obtain a blank form from the department, Payroll Services or the Payroll Services forms webpage.  Changes can also be made on-line via MyMadison for all "non-exempt" tax withholding claims.
  • Complete the form in accordance with the instructions outlined in subsection .930. This form can be changed as often as is necessary as desired by the employee.
  • Return the completed form directly to Payroll Services.  Forms received (6) working days before payday will have changes implemented for that payday.

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

.941 Required

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.

  Dept./JMU Org. Number: Review this information for accuracy. The department name and organization number will be indicated on the panel. If incorrect, please notify Payroll Services immediately.
  Pay Period: This information is indicated on the panel.
  Reg. Hours/OT Hours: Enter the total regular hours worked and the total overtime hours worked for the pay period indicated above. The University's Overtime Policy is stated in Policy 1303 of the JMU Manual of Policies and Procedures. Regular hours and overtime hours shall be recorded with quarter-hours worked (i.e., .25, .50, or .75). If you are reporting hours for more than one pay period, be sure to check the multiple pay periods check-box, and indicate the number of pay periods the reported hours were worked.
  Name: Verify that the names of employees are correctly spelled. To add other employees, see "Time Entry Exceptions" panel.
  Employee Record Number/Employee ID (HRMS): Check this information for accuracy. Numbers will be printed for the employee with pre-printed names in Name listed above.
  Position #: This number will be provided for employees with pre-printed names in the Name line above.
  ADDITIONAL EMPLOYEES:
  Reg. Hours/OT Hours: Indicate regular and overtime hours worked by employees whose names are not pre-printed on the panel.
  Name: Enter the complete names of additional employees whose names are not on the panel. A memorandum will be sent to the department if these additional employees cannot be paid on the current payroll. In that case, the employees and the time worked for this pay period and the next shall be added to the next JMU Time Entry payroll information submitted by the department.
  Social Security Number: Enter the social security number for each additional employee added under the "Time Entry Exceptions" panel. This number should be exactly as it appears on the employee's Social Security Card.
  Reason: Indicate the reason for the exception. Also provide any other additional information that may be helpful or needed by Payroll Services.
  TOTALS and CERTIFICATION:
  Department Totals: The system will automatically calculate a grand total. Please verify for accuracy.
  Certified Correct: Approval of the department head or the employee designated on the Signature Authorization is required. This "signature" certifies the accuracy of the JMU Time Entry panel and authorizes payment for the number of hours indicated.

 

.950 Employee Direct Deposit Authorization

.951 Required

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

Forms are available online or from Payroll Services.  Changes to existing Direct Deposit banking information can be made on-line via MyMadison.

.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.

  Name of Bank/Credit Union: Enter the name of the banking institution.
  Checking (C)/Saving (S): Enter C or S to indicate what type of account the net check is to be deposited to.
  Voided Check: Attach a voided check to the original form.
  Printed Name: Enter the employee's full name.
  Signature: Employee's signature.
  Date: Enter the date the form is completed.
  Social Security Number or Employee ID: Enter the employee's social security number or their Employee EmplId (not Student ID).

 

 

5010 Moving and Relocation Payroll Services (5000)

.100 General

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.

.200 Definitions

Agency James Madison University (JMU).
Agency Head The President of the University.
Approving Authority The individual responsible for the department budget.
Carrier Transportation Services (such as: loading, hauling, crating, and unpacking) provided by a common carrier. The services may include incidental materials supplied to move the household goods and personal effects.
Common Carrier Any licensed commercial moving company.
Days All references to "days" refer to calendar days.
Family Includes any spouse or dependent that resides in the household and moves to the new location.
Moving Actions to change the place of a primary residence.
Moving Expenses Payments for transporting the employee, family, household goods, and personal effects from the former residence to the new work location.
Personal Residence House, condominium, townhouse, or rental property (for example, apartment, flat) where the employee maintains a permanent primary household.
Primary Household Household goods and personal effects maintained at the employee's main place of residence.
Relocation The process of establishing, and settling in a particular place for employment purposes.
Relocation Expenses Payments other than moving expenses incurred in relocating the employee and family.
State Employee Any elected, appointed, salaried, or classified employee of a State agency or institution.
State Funds Monies deposited with the State Treasurer, whether derived from appropriations or agency receipts.
Moving and Relocation Tenure Agreement An agreement to remain in the employment of the Commonwealth from the first day in the new position until twelve (12) months after. (The employee must sign this agreement before incurring any expenses.)

NOTE: This is not the JMU Employment Contract.  The Senior Vice President for Administration and Finance must also sign this form.
Temporary Quarters Moving and relocation regulations define temporary quarters as lodging or housing in which the employee lives at a reasonable cost, until a permanent residence is secured, or up to a maximum of 90 days. Temporary quarters could consist of any type of lodging or housing, such as hotels/motels, apartments, or single-family dwellings.

 

.300 Eligibility

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.

.310 Employee

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.

.320 Relocation

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.

Distance

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.

Permanent

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)

◊  Meals

◊  Lodging

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.

REIMBURSABLE

The following expenses, related to the sale of the principal residence due to moving and relocation are reimbursable:

  • Actual expense of real estate commission
  • Attorney fees
  • Title fees
  • Escrow fees
  • State transfer taxes
  • Pest inspections

NON–REIMBURSABLE

The following expenses, related to the sale of the principal residence due to moving and relocation are not reimbursable:

  • Sales commissions and similar expenses if the employee acts as a selling agent (closing and legal costs are allowable)
  • Advertising and "fix–up" costs
  • Loss sustained on sale of residence
  • Real estate and capital gains taxes
  • Payment and repayment of interest
  • Points or loan payment charges that are negotiable
  • "Carrying" costs (maintenance fees, utilities, principal, etc.)
  • Mortgage penalties
  • The buyer's closing costs, including Virginia fees

.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)
Trips for actual house hunting – house hunting must occur prior to the first day of work (see House hunting Expenses in this subsection – TAXABLE)
The trip to bring the family to the new residence (temporary or permanent) (NON–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:

  • VA funding fee
  • Loan origination fee, or lease processing fee
  • Mortgage survey
  • Appraisal fee
  • Credit report
  • Title search
  • Title Insurance
  • Recording fee
  • Attorney fee
  • Home Inspection (Limited to one)
  • Notary fees

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:

  • Utility deposits and connection fees
  • Real estate taxes, prepaid or otherwise
  • Capital gains taxes
  • Mortgage loan differential
  • Realtor fees related to purchasing
  • Remodeling or decoration expenses
  • Points, discount fees, or loan payment charges
  • Repair and maintenance costs
  • Homeowner insurance
  • Homeowner warranty fees
  • Private mortgage insurance
  • Permit fees such as building, sewer and zoning
  • Deposit for rent

.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:

  • The cost of insurance for more than bulk rate coverage provided by the Common Carrier
  • The cost to transport recreation vehicles, such as yachts
  • Laundry or dry cleaning while in temporary quarters
  • The cost to move a pet

.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.

  Example:

If total actual allowable moving cost totaled $12,000, the employee will be reimbursed $10,158.50 less the employee withholdings. Here is how this figure is derived:

This reimbursable amount is the $11,000 maximum minus the employer FICA tax. The current rate is 7.65% which calculates to $841.50 (7.65% of $11,000). The amount remaining for direct reimbursement to the employee is $10,158.50 less the employee withholdings for Federal and State income taxes and employee FICA.

Exceptions for exceeding the maximum dollar limitation require approval of the appropriate Governor's Secretary.

 

.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.

.440 Funding

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:

  • The employee must remain employed on a regular, full-time basis with James Madison University for at least one year, beginning on the date that the employee starts work at the new location.
  • If the employee ends employment with James Madison University before the obligated one year of service, the employee will repay the University the gross amount of moving and relocation payments. That is, actual reimbursements received by the employee and payments to third parties for the employee, and all taxes deducted that relate to those reimbursements.
  • Moving and relocation regulations do not require repayment if termination is at the election of the University due to unsatisfactory job performance, or because of a layoff.
  • The University may prorate or waive repayment if the employee terminates employment with the University for other reasons beyond the employee's control and acceptable to the University.
  • Exceptions involving the early cancellation of an existing Employee Moving and Relocation Tenure Agreement, upon executing a new Employee Moving and Relocation Tenure Agreement, will be at the option of the agency or agencies involved.

.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.

.490 Approvals

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

.510 Employee

  • Obtains original receipts and other documents that are necessary to support all claims for reimbursement.
  • Itemizes and submits multiple claims for reimbursement (Employees should submit claims as they receive invoices for individual expenses, not after they receive all invoices).
  • Submits all claims for payment within thirty (30) days after moving into the new permanent residence, but never later than twelve (12) months after beginning employment at the new location.
  • Submits actual, reasonable, and necessary expenses within the guidelines of these procedures.
  • Files the required IRS forms with their tax return to receive a deduction for moving and relocation expenses, if applicable.
  • Reimburses the University for moving and relocation payments (including amounts paid to third-party vendors) and any taxes deducted, if the employee terminates employment with James Madison University before the obligated one year of service. Under these circumstances the University will adjust the employee's gross income for tax purposes for the total amount returned to the University.

.520 Department Head

  • Maintains documentation that substantiates the reimbursement eligibility of a new employee as a condition of employment.
  • Approves moving and relocation payments and reimbursements charged to the department account.

.530 University Controller

  • Reviews, approves, and properly files all documents for reimbursement or payment of moving and relocation expenses. Processes all documents for payment according to these procedures, State Regulations and the Code of Virginia, Section 2.1-223.3 and 14.1-5.1.
  • Retains copies of the binding Employee Moving and Relocation Tenure Agreements and any other agreements for all eligible employees.
  • Collects the total gross amount of all moving and relocation payments if an employee does not satisfy the terms of the Employee Moving and Relocation Tenure Agreement. Prorates or waives repayment of reimbursements from the employee if properly approved. (The repayment amount includes all reimbursements paid to the employee and payments to third parties for the employee. The amount also includes all taxes deducted that relate to those reimbursements). Adjusts the employee's gross income to reflect the total amount received by the University.
  • Insures that moving and relocation expense reimbursements and payments meet both employer withholding and employee reporting of gross income and applicable payroll taxes as defined by the Internal Revenue Service. (Refer to Subsection .800 "IRS Reporting and Qualified Moving Expenses," for additional information).

.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.

.611 Employee/Originator

  • Completes the Employee Moving and Relocation Expense Summary form, signs and attaches all original receipts.
  • Attaches a copy of the Employee Moving and Relocation Tenure Agreement to the initial summary.
  • Consecutively numbers each form, when submitting more than one Employee Moving and Relocation Expense Summary form. Carries forward cumulative totals to the next summary report, so the latest summary reflects the total reimbursement to date.
  • Completes a Travel Expenditure Reimbursement Voucher for each reimbursement request submitted. Obtains the signature of the approving authority for the department account shown on the voucher (This signature certifies that the total amount on the voucher is within the amount authorized for moving and relocation expenses and that funding is available in the account shown.).
  • Forwards all forms and required attachments to the Payroll Services.

.612 Department

  • Maintains a copy of the signed Employee Moving and Relocation Tenure Agreement and any other documentation related to payment or reimbursement of moving and relocation expenses.
  • Approves reimbursement forms or payments when charged to the department account.

.613 Payroll Services

  • Receives forms with required attachments from employee/originator.
  • Reviews and audits submitted forms and attachments for accuracy, reasonableness, and completeness.
  • Submits payment requests that are in compliance and conformity with Commonwealth and University regulations and limitations.
  • Submits the Employee Moving and Relocation Tenure Agreement and the Employee Moving and Relocation Expense Summary forms to the Senior Vice President for Administration and Finance and the President for signature.
  • Determines the taxability of the approved reimbursement amount.
  • Makes necessary entries to the University Payroll System to effect payment to the employee.
  • Includes proper amounts on the employee's W-2 form and on the yearly report of moving and relocation reimbursements (IRS Form 4782).

.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.

.621 Employee/Originator

  • Prepares the Employee Moving and Relocation Expense Summary form.
  • Obtains the signature of the department approving authority for the account shown on the payment or reimbursement document.
  • Requests the Payroll Services to issue a letter (if moving company requires confirmation) authorizing the moving company to bill James Madison University for moving and relocation costs.
  • Forwards all forms with original receipts and other supporting documentation to the Payroll Services (The supporting documentation must include a copy of the letter from James Madison University to the employee confirming the amount approved for moving and relocation costs.).

.622 Department

  • Maintains a copy of the signed Employee Moving and Relocation Tenure Agreement and any other documentation related to third party payments and reimbursements to employees for moving and relocation expenses.
  • Approves reimbursement or payment requests when charged to the department account. Note: The signature certifies that the total amount is within the amount authorized for moving and relocation and funding is available in the account shown.

.623 Payroll Services

  • If required by the common carrier, prepares a letter authorizing the moving company to bill James Madison University for transportation and associated costs.
  • Receives all forms, copies of correspondence and required attachments, related to moving and relocation reimbursement or payment requests.
  • Reviews and audits submitted forms and attachments for accuracy, reasonableness, and completeness of supporting documentation.
  • Determines that submitted expenses are in compliance and conformity with Commonwealth regulations and limitations.
  • Obtains appropriate signatures for the Employee Moving and Relocation Tenure Agreement and the Employee Moving and Relocation Expense Summary forms.
  • Forwards the audited payment package to the Office of Accounts Payable.
  • Maintains a copy of the common carrier payment package received from the Office of Accounts Payable.
  • Determines tax impact to the employee, if any, for the payment.
  • Enter information into the University Payroll System to effect necessary adjustments for tax withholding.
  • Insures that the employee's W-2 form and the yearly report of moving and relocation reimbursements (IRS Form 4782) show the proper amounts.

.624 Accounts Payable

  • Receives a copy of the payment confirmation letter from Payroll Services, if applicable.
  • Receives the invoice from the vendor and forwards to Payroll Services for approval.
  • Receives audited payment-package from Payroll Services.
  • Compares the payment amount to the authorized amount, if applicable.
  • Sends a copy of the completed common carrier payment package to Payroll Services.
  • Processes payment package to effect payment and to record transactions in FAS and CARS.

.700 Forms Preparation and Submission

.710 Employee Moving and Relocation Tenure Agreement

.711 Required

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.

  Date: Date employee signs the Employee Moving and Relocation Tenure Agreement. This date must be prior to any expenses being incurred.
  Employee Name: The full name of the employee.
  Department: The name of the department.
  Date: Date employment begins.
  M&R Allowance Applicable: Specify the dollar limit allowed by the department (not to exceed the state's maximum of $11,000 (minus employer FICA tax).
  Employee: The employee must sign in ink certifying to the terms of agreement.
  Agency: The signature of the Senior Vice President for Administration and Finance. (The Office of Payroll Accounting will get this signature after they have reviewed documents for correctness.)
  Date: Date the Senior Vice President for Administration and Finance signs the Employee Moving and Relocation Tenure Agreement.

 

.720 Employee Moving and Relocation Expense Summary

.721 Required

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.

  FOR COMPLETION BY EMPLOYEE:
  Reimbursement Number: Enter the next consecutive number for this summary report. For each reimbursement, a summary report must be completed and numbered in consecutive order.
  Is this the final reimbursement? Yes/No (Check One): Check "yes" or "no" as appropriate, whether this is or is not the final summary report.
  Employee Name: Enter your full name.
  SSN/HR EmplID: Enter your individual social security number, or HR PeopleSoft EmplID (not STUDENT PeopleSoft EmplID).
  Address/City/State/Zip: If known when completing this summary report, enter the address (Street, City, State, and Zip Code) of your new residence.
  Date Employed: Enter the effective date of the employee's assignment or transfer to the above agency at the new work location. Usually this is the first day of work at the new location.
  Date Employee Moving and Relocation Tenure Agreement Signed: Enter the date that the employee signs the Employee Moving and Relocation Tenure Agreement.
  TYPE OF MOVING EXPENSE: Enter information as described below.
  TOTAL THIS REPORT: Enter the gross expenses, being reimbursed for, in the appropriate category box on this expense summary.
  TOTAL ALL PRIOR REIMBURSEMENTS: For each applicable category claimed on all prior summary submissions, enter the total gross amount claimed.
  CUMULATIVE TOTAL: Add, "Total All Prior Reimbursements" to "Total This Report" for each category and enter the cumulative total. Carry forward, these cumulative totals, to the next summary report submitted, using the total All Prior Reimbursement Column.
  TAXABLE EXPENSES:
  Pre-move travel and lodging payments excluding meals: Number of Trips/Number of Nights: Enter the number of house hunting trips and the associated number of overnight stays connected with this move. Enter expenses in the applicable columns.
  Temporary quarters travel and lodging payments: From/To: Enter the starting and ending dates of the temporary quarters period for reimbursement requested on this report. Enter expenses in the applicable columns.
  Total meal payments for pre-move house hunting and temporary quarters: Enter the meal expenses associated with travel from the old to the new home in the applicable columns.
  Total meal payments incurred during travel from the old to the new home: Enter the meal expenses associated with travel from the old to the new home in the applicable columns.
  Qualified expenses of buying a new home: Enter only those expenses listed as reimbursable in Subsection .418 "Home Purchase (TAXABLE)." Enter expenses in the applicable columns.
  Qualified expenses of selling an old home: Enter only those expenses listed as reimbursable in Subsection .413 "Home Sale (TAXABLE)." Enter expenses in the applicable columns.
  Other payments (Specify on an attached sheet): Enter any other payments that are subject to reimbursement per the guidelines set forth in this section, "Moving and Relocation." Specify these payments on a separate sheet and attach it to this form. Enter expenses in the applicable columns.
  SUBTOTAL TAXABLE EXPENSES: Enter the subtotal of taxable expenses in the applicable columns.
  NON–TAXABLE EXPENSES:
  Storage: Common Carrier, Dates: From/To: Enter the starting and ending dates of the common carrier storage services. Enter expenses in the applicable columns.
  Storage: Other than Common Carrier, Dates: From/To: Enter the starting and ending dates of the non-common carrier storage services. Enter expenses in the applicable columns. Enter the expenses in the applicable columns.
  Transportation: Common Carrier: Enter the expenses for common carrier transportation of the employee's household goods and personal effects from the former principal residence to the new work location. Enter expenses in the applicable columns.
  Transportation Other than Common Carrier: Enter the expenses of a moving vehicle rental for the employee's household goods and personal effects from the former principal residence to the new work location. Enter expenses in the applicable columns.
  Travel and lodging payments excluding meals for the move from the old to the new home: Enter the costs of travel and lodging payments, excluding meals, for the move from the old to the new home. Enter expenses in the applicable columns.
  FOR COMPLETION BY DEPARTMENT:
  SUBTOTAL NON–TAXABLE EXPENSES: Enter the subtotal of nontaxable expenses in the applicable columns.
  GRAND TOTAL: Enter the grand total of all taxable and nontaxable moving and relocation expenses in the applicable columns.

 

  CERTIFICATION STATEMENTS:
  SIGNATURE OF EMPLOYEE: The employee (listed in item 3) must sign in ink certifying that the information is correct and conforms to any James Madison University Moving and Relocation expense reimbursement agreement.
  DATE: Date the employee signs the form.
  SIGNATURE OF AGENCY HEAD: Payroll Services will obtain the signature of the Agency Head after reviewing all documents for correctness
  DATE: Date the Agency Head signs the form.

 

.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:

  • The cost of pre–move house–hunting trips.
  • The cost of temporary living expenses in the general location of the new job.
  • The cost of selling or settling an un–expired lease on the former residence or the cost of buying a new residence.

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

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.

Temporary Quarters

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.

Home Sale

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).

Home Purchase

The maximum reimbursement of $11,000 (minus employer FICA tax) includes home purchase expenses.