Employee Relocation

1. Employee Relocation Ed DuPree – Purchasing Leisha Moxness – Controller’s

2. How to Start • Contact Ed DuPree, Assistant Director of Purchasing (x2795) when someone has been hired who will be relocating. • Provide Ed’s contact information to the employee and their contact information to Ed. • Scan a copy of the offer letter to Ed (o.k. to hide salary information.) This will document the arrangement with the employee and what expenses will be covered by the University.

3. Standard Policy • Creighton will pay up to a maximum of $5,875.00 as follows: 100% of the first $1,000.00 $1,000.00 75% of the next $6,500.00 $4,875.00 Total $5,875.00 * * *VP approval required for payments beyond the standard policy amount

4. Purchasing’s Role • Seek professional mover with good industry track record • Seek competitive discounts while ensuring quality of service • Act as liaison between new employee and moving company

5. Tax Implications • The following are deductable moving expenses per the IRS and, therefore, may be covered by an employer with no tax implications: • Transportation of household goods • Lodging (not meals) en route including last night in old location and first night in new location • Actual car expenses, such as the amount paid for gas and oil, or the IRS standard mileage rate for moving purposes, but not both • Airline tickets for members of employee’s household • Storage of household goods for up to thirty days

6. Tax Implications Cont. • The following are not deductable per the IRS and are therefore considered taxable income when covered by an employer: • Storage over 30 days • More than one day temporary housing either at old or new location • Mileage in excess of IRS’s standard moving rate • House-hunting trip costs • For more information on what expenses are deductable and non-deductable, refer to www.irs.gov/pub/irs-pdf//p521.pdf

7. Tax Implications – Payroll • Payment by the University for any non-deductable items will be taxable to the new employee • These amounts will be calculated by the Controller’s office and sent to the Payroll department • The amount will be recorded as income on the employee’s paycheck and taxed appropriately

8. Processing Invoices • The processing of move-related invoices and expenses should follow the general guidelines for Purchase-Order-Related payment processing (APPR02) • The purchase order must fund the total cost of the move, not just the share covered by the University • Use a TER (Travel and Expense Form) to request reimbursement for an employee’s out-of-pocket moving expenses and classify using account 7835 on the right side in the accounting distribution box

9. Processing Invoices Cont. • Submit TERs to the Controller’s Office • Controller’s Office will review the expenses for tax implications • When possible any expenses with tax implications will be counted towards the employee share

10. Employee Share • When all payments relating to the move are complete, the Controller’s Office will calculate the employee’s share of moving costs • Controller’s Office will bill the new employee • Bills are sent via e-mail • Employee may choose between paying by check or payroll deduction • Payroll deduction can be spread over 6 months

11. Helpful Hints • The Department may find it helpful to keep a log of employee’s expenses, so no TERs are submitted beyond what employee is allotted • Please indicate House Hunting on the TER if a trip was made for this purpose.

12. Resources • Policies are contained in • Controller’s Manual, GNPL 05, Relocation Policy • Contacts: • Ed DuPree, Purchasing, x2795 • Leisha Moxness, Controller’s Office, x3878