Relocation & Moving Expenses

1. Relocation & Moving Expenses Mark Kent

2. Agenda/Topics To Be Covered • Policy Background • Eligibility • Relocation Package • Payment/Reimbursement Guidelines • Common Mistakes • Adequate Documentation • Year-End Reporting • Resources

3. Policy Background • Board of Regents (BOR) - September 2007 • University of Georgia - February 2008 • BOR policy added to BPM – July 2008

4. Resource • 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

5. Eligibility • Move related to start of work • Within one year after report to work unless extenuating circumstances • Time • 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) • Distance • new work >50 miles farther from former home than the old workplace

6. Distance Test - Example Professor X worked 25 miles from his old home. The former home is 225 miles from the new work place. • 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? • □ Yes. You meet this test.□ No. You do not meet this test. You cannot deduct your moving expenses.

7. Eligibility - Additional Guidelines • 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 • Full-time salaried position • 1 year

8. Offer Letter • 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

9. Relocation “Package” • 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 • 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 **

10. Allowable Funding Sources • 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.  • UGA Research Foundation funds must be approved by the Office of the Vice President for Research Director of Fiscal Affairs. • Funds provided through the Office of the Senior Vice President for Academic Affairs must be approved by the Provost. • Grant funds must be approved by the project’s Principal Investigator (PI), the Department Head, and the Contracts & Grants department.

11. Payment/Reimbursement Guidelines • Relocation Package to encumber funds • Pink Check Request ONLY • E-check request will be rejected • Request for Reimbursement of Relocation Expenses form

12. Payment/Reimbursement Guidelines • Non-taxable Expenses • Processed through Accounts Payable • Encumbrance will automatically be reduced • 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.

13. Qualified (Non-Taxable) Expenses 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 • Airfare (coach only) • Lodging (per diem limit) • Mileage or fuel • Rental Car  • Tolls, taxis, shuttle, etc…

14. Qualified (Non-Taxable) Expenses Transporting Household Goods: • Common Carrier • Less than $25000 • 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 • Everify for Payments over $2500 http://www.busfin.uga.edu/procurement/PDF/EVerifyForm.pdf • Greater than $25000 • 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***

15. Qualified (Non-Taxable) Expenses Transporting Household Goods (cont): • Self-Move • 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

16. Mileage – IRS Guidelines 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

17. Non-Qualified (Taxable) Expenses Pre-Move Travel/House hunting trips: • 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

18. Non-Qualified (Taxable) Expenses (cont.) • Temporary Living Quarters (up to 6 months) • Temporary Storage (over 30 days) • Meals during final move (per diem limits) • Other Charges

19. Adequate Documentation • Original documents/receipts required • Credit card statements may serve as supporting documentation but are not acceptable as the primary document • Documents should contain the following: • Name of payee • Date • Amount • Details of purchase/expense • Amount Paid

20. Adequate Documentation • 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

21. Adequate Documentation • Vehicle Rental • Rental agreement; detailed receipt • Temporary Living • 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 • original receipts for fuel and/or oil • Fuel and oil expenses are not reimbursable if the employee is claiming reimbursement for mileage

22. Adequate Documentation • 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

23. Common Mistakes • Incomplete relocation package • Missing signatures • Original Offer letter does not contain a specific dollar amount for relocation • Expenses incurred prior to signing offer letter and moving agreement • Inadequate documentation • Receipts not submitted within 60 days after incurred or paid • Expenses for members other than for those in the household i.e. airfare or meals for friend helping move

24. Year-End Reporting • 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

25. Questions & Answers Contact Information: Mark Kent (mkent@uga.edu) Andre Simmons (asimmons@uga.edu)