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RELOCATION POLICY

RELOCATION POLICY. BY LINDA MUNDY. MOVING ALLOWANCE/EXPENSE REIMBURSEMENT. UNIVERSITY POLICY IV.5.6 http://www.purdue.edu/oop/policies/pages/human_resources/iv_5_6.html Implemented April 9, 2007 Reason for Policy: Offer competitive employment packages Provides increased flexibility

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RELOCATION POLICY

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  1. RELOCATION POLICY BY LINDA MUNDY

  2. MOVING ALLOWANCE/EXPENSE REIMBURSEMENT • UNIVERSITY POLICY IV.5.6 • http://www.purdue.edu/oop/policies/pages/human_resources/iv_5_6.html • Implemented April 9, 2007 • Reason for Policy: • Offer competitive employment packages • Provides increased flexibility • Enhances the timing of the payment

  3. RELOCATION-PROCEDURES • Approval Procedures • Vice President, Dean or Director may approve up to $15,000 • Approved moving allowance/expense reimbursement should be documented in the candidates offer letter or subsequent documentation • Exceptions require the approval of the executive officers reporting to the president

  4. MOVING ALLOWANCE-PAYMENT PROCEDURES • Utilize the invoice voucher template/moving direct debit invoice voucher & instructions - http://www.purdue.edu/taxes/Relocation/Moving_Allowance/Welcome.html • Include a copy of the approved documentation for the moving allowance with the invoice voucher • Forward to Accounts Payable for processing

  5. MOVING ALLOWANCE-TAX IMPLICATIONS • Moving allowances are considered taxable • Reported on W-2 • Employee may recover income tax withheld by filing appropriate IRS forms with the tax return • Taxes withheld at the time of payment • Federal Income – 25% • State Income – 3.4% • Social Security – 7.65%

  6. MOVING EXPENSE REIMBURSMENT – PAYMENT PROCEDURES • Purpose – To reimburse moving expenses that meet IRS guidelines for tax deductibility • Prepare a direct invoice voucher or a direct debit invoice voucher • Attach receipts with proof of payment and a copy of the approved documentation • Forward to Accounts Payable for processing

  7. MOVING EXPENSE REIMBURSEMENT – TAX IMPLICATIONS • Moving expense reimbursements are generally not taxable • Refer to the summary of deductible & non-deductible moving expenses http://www.purdue.edu/taxes/Relocation/Moving_Allowance/movingdeductgrid.htm • If a reimbursement is made for a taxable item, it will be added to the employee’s W-2

  8. RELOCATION PROCEDURE-CONTACTS • Tax Manager – Linda Mundy (765) 494-0521 • Tax Accountant – Pam Hartman (765) 494-7921 • Department Business Managers

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