Relocation Expenses - University of Georgia

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Mark Kent
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Policy Background
Eligibility
Relocation Package
Payment/Reimbursement Guidelines
Common Mistakes
Adequate Documentation
Year-End Reporting
Resources
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Board of Regents (BOR) - September 2007
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University of Georgia - February 2008
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BOR policy added to BPM – July 2008
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FAPP
◦ Controller’s Division
◦ Relocation and Moving Expenses
http://www.policies.uga.edu/FA/nodes/view/1051/
This link includes:
Policy
Procedure
Forms and Documents
Frequently Asked Questions
Helpful Tips
IRS Publication 521
http://www.irs.gov/publications/p521/ix01.html
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Move related to start of work
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Time
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Distance
◦ Within one year after report to work unless extenuating
circumstances
◦ work full-time in the area of the new workplace for at
least 39 weeks during the 12 months immediately after
the move
◦ Academic payroll : full-time equals Fall and Spring
semesters (one academic year)
◦ new work >50 miles farther from former home than the
old workplace
Professor X worked 25 miles from his old home. The
former home is 225 miles from the new work place.
1.
2.
3.
Enter the number of miles from your old home to
your new workplace: 225 miles
Enter the number of miles from your old home to
your old workplace: 25 miles
Subtract line 2 from line 1: 200 miles (If zero or
less, enter -0-)
Is line 3 at least 50 miles?
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□ Yes. You meet this test.
□ No. You do not meet this test. You cannot deduct
your moving expenses.
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Original offer letter
◦ Must contain formal, specific amount for relocation
◦ Post-offer negotiated amounts will be considered a
violation of the Gratuities clause of the Constitution
of the State of Georgia
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Full-time salaried position
◦ 1 year
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Original with specific amount for relocation and/or
house hunting
Show acceptance by new employee with an original
signature and date of signature
Moving agreement should be sent at the same time
as offer letter to be signed
Date of letter and acceptance must be PRIOR to any
expenses related to relocation
Lab and office must be listed as separate amount
1.
2.
Letter of Offer
◦ Specific dollar amount for relocation in original offer
Relocation and Moving Expense Agreement
◦ Must be signed by employee, department head, and
Dean/Vice President
◦ If $15,000 or more – must be signed by Senior VP
3.
Relocation Expense Authority (REA)
◦ Contains pre-printed control number for tracking
payments
◦ Funding source/authorization of funds
**No expenses may be incurred prior to the
signature dates of the offer letter and relocation
agreement **
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Departmental funds must be approved by Department Head with
budgetary responsibility for the State Account,
UGA Foundation funds and Arch Foundation funds must be
approved by the appropriate Dean or Vice-President as required
by the respective fund agreement and then sent to the External
Affairs Office of Financial Services for approval.
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UGA Research Foundation funds must be approved by the Office
of the Vice President for Research Director of Fiscal Affairs.
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Funds provided through the Office of the Senior Vice President
for Academic Affairs must be approved by the Provost.
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Grant funds must be approved by the project’s Principal
Investigator (PI), the Department Head, and the Contracts &
Grants department.
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Relocation Package to encumber funds
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Pink Check Request ONLY
◦ E-check request will be rejected
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Request for Reimbursement of Relocation
Expenses form
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Non-taxable Expenses
◦ Processed through Accounts Payable
◦ Encumbrance will automatically be reduced
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Taxable Expenses
◦ Processed through Payroll
 Email will be sent with taxable amount to department
 Department will complete monthly personnel
◦ Encumbrance will be manually reduced
◦ Amount will be on monthly paycheck with federal,
state, and FICA taxes withheld.
Travel & Lodging:
◦ one (1) trip per household member
◦ Travel begins day that family leaves former home to
day of arrival at new home
◦ shortest, most direct route available by
conventional transportation
1.
2.
3.
4.
5.
Airfare (coach only)
Lodging (per diem limit)
Mileage or fuel
Rental Car
Tolls, taxis, shuttle, etc…
Transporting Household Goods:
Common Carrier
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Less than $25000
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Direct bill
Less than $10,000 – recommended that quote is obtained before
services rendered
$10,000 - $$24,999 – Three quotes are preferred from moving
companies prior to services rendered
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Everify for Payments over $2500
http://www.busfin.uga.edu/procurement/PDF/EVerifyForm.pdf
Greater than $25000
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Must be contracted for through the Procurement Office. It is
recommended that you contact the Procurement Office prior to
submitting a purchase requisition in UGAmart for the expenditure.
***The University of Georgia presently does not have contracts
with any 3rd party moving companies***
Transporting Household Goods (cont):
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Self-Move
a.
b.
c.
d.
Vehicle Rental & Accessories*
Fuel/Oil
Labor (up to $500)
Temporary Storage (up to 30 days)
*Accessories that are purchased and become the
personal property of the employee are not reimbursable
Effective January 1, 2013:
 .235 per mile driven for moving purposes is non
taxable
 .325 per mile driven for moving purposes is taxable
Example:
Professor X and his family drive the family car 500
miles from the former home to the new home.
Nontaxable Amount:
500 miles * $0.235 = $117.50
Taxable Amount:
500 miles * $0.325 = $182.50
Pre-Move Travel/House hunting trips:
a.
b.
c.
d.
e.
f.
Airfare (coach only)
Lodging (per diem limit)
Mileage or fuel
Rental Car
Tolls, taxis, shuttle, etc…
Meals (per diem limits)
Note : pre-move trips are limited to 5 days
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Temporary Living Quarters (up to 6 months)
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Temporary Storage (over 30 days)
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Meals during final move (per diem limits)
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Other Charges
Original documents/receipts required
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Credit card statements may serve as
supporting documentation but are not
acceptable as the primary document
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Documents should contain the following:
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Name of payee
Date
Amount
Details of purchase/expense
Amount Paid
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Moving Company
Bill of lading; detailed receipt
Proof of payment i.e. cancelled check or credit card statement
Airfare
airline ticket “receipt” coupon and/or equivalent printed receipt
for e-tickets; boarding pass
Mileage
MapQuest or odometer reading
Lodging
itemized hotel bill
Meals
detailed receipt unless claiming per diem
identify number of household members traveling
Alcohol is not permitted on institutional funds
Vehicle Rental
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Rental agreement; detailed receipt
Temporary Living
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original hotel bill or short-term lease agreement
for temporary lodging and proof of payment
brief explanation stating the purpose for
temporary living
Auto fuel and oil
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original receipts for fuel and/or oil
Fuel and oil expenses are not reimbursable if the
employee is claiming reimbursement for mileage
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Labor
◦ receipt from the business employed to provide
labor including:
 Signature
 tax identification number (individual)
 amount paid
◦ maximum total payment of $500
◦ labor provided by the employee or the
employee’s immediate family member(s) is not
reimbursable
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Incomplete relocation package
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Missing signatures
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Original Offer letter does not contain a specific dollar
amount for relocation
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Expenses incurred prior to signing offer letter and
moving agreement
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Inadequate documentation
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Receipts not submitted within 60 days after incurred or
paid
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Expenses for members other than for those in the
household i.e. airfare or meals for friend helping move
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Relocation expenses that are paid via payroll
will be reported on the employee’s W-2 as
part of Federal and State wages.
Relocation expenses that are paid via
accounts payable will be reported on the
employee’s W-2 in box 12
Questions & Answers
Contact Information: Mark Kent ([email protected])
Andre Simmons ([email protected])
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