A-to-Z Index

5010 - Moving and Relocation

Effective Date: January 1, 2013


Table of Contents:

.100 General
.200 Definitions
.300 Eligibility
   .310 Employee
   .320 Relocation
.400 Reimbursement Limitations
   .410 Expenses Incurred and Supported    
        .411 House Hunting Expenses (Pre–move Travel) - TAXABLE
        .412 Temporary Quarters – TAXABLE
        .413 Home Sale – TAXABLE 
        .414 Cancellation of Lease – TAXABLE
        .415 Travel (Move to New Job Location and House Hunting) – TAXABLE AND NON–TAXABLE
        .416 Transportation of Household Goods and Personal Effects – NON–TAXABLE
        .417 Storage of Household Goods and Personal Effects – NON–TAXABLE
        .418 Home Purchase (TAXABLE)
        .419 Non–Reimbursable Expenses
   .420 Total Reimbursement
   .430 Employee's Spouse
   .440 Funding
   .450 Prospective Employment
   .460 Mileage – Travel
   .470 Employee Moving and Relocation Tenure Agreement
   .480 Reimbursement Procedures
   .490 Approvals
.500 Reimbursement Responsibilities
   .510 Employee
   .520 Department Head
   .530 University Controller
.600 Processing Procedures
   .610 Reimbursement to Employee
        .611 Employee/Originator
        .612 Department
        .613 Payroll Services
   .620 Payments to Third Parties
        .621 Employee/Originator
        .622 Department
        .623 Payroll Services
        .624 Accounts Payable
.700 Forms Preparation and Submission
   .710 Employee Moving and Relocation Tenure Agreement
        .711 Required
        .712 Where to Obtain Blank Forms
        .713 Number of Copies
        .714 Where to Send Completed Copies
        .715 Form Preparation Instructions
   .720 Employee Moving and Relocation Expense Summary
        .721 Required
        .722 Where to Obtain Blank Forms
        .723 Number of Copies
        .724 Where to Send Completed Forms
        .725 Required Supporting Documents
        .726 Form Preparation Instructions
.800 IRS Reporting and Qualified Moving Expenses
   .810 IRS Reporting
   .820 Qualified Moving Expenses
   .900 Summary of Moving and Relocation Expense Reimbursement Limitations

.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.