Administrative Responsibility:   Associate Director of Disbursements, reporting to the AVP for Business Services

PURPOSE

This policy outlines rules and processes related to personal moving expenses.

SCOPE

This policy applies to any new hire employee who received as part of their employment offer an allowance for moving expenses.

DEFINITIONS

1. N/A

POLICY

This policy outlines rules and processes related to personal moving expenses. The term "personal moving expenses" includes the costs incurred for relocating the household goods (as defined in the policy statement below) and/or the family of a new employee. Non-personal moving expenses such as the moving of a Laboratory and/or Lab Equipment related to a Federal Grant/Contract are not included in this section since they are University expenses accomplished via a purchase order requested through the Procurement & Strategic Sourcing (Procurement) Department (Refer to APPM Section 2.2 Initiating a Request.)

It is important to note that Internal Revenue Service regulations currently consider all reimbursements associated with the move as taxable income to the employee, subject to withholding and reporting on the employee's Form W-2. The Payroll Department will be notified of all personal moving expense reimbursements so as to withhold appropriate taxes. Employees will be notified prior to the withholding.

Reimbursement of personal moving expenses from university funds may be authorized in select cases of new faculty members and staff according to the following set of criteria:

1. Payment must be essential for competitive recruitment purposes.
2. Moving expenses may only be paid for faculty and staff normally recruited through regional or national search processes.
3. Moving expenses over $10,000 need approval of the respective associate vice president, dean, or above.
4. The offer letter to a new employee must specify the maximum moving expense reimbursement that the University will pay, and the related tax implications to the employee.
5. Moving expenses may be paid only if the employee's overall commute from his/her previous residence to his/her new job is at least 50 miles greater than the commute from his/her previous residence to his/her previous job.

Adequate budget must exist within the department to cover the moving expenses. Examples include but are not limited to:

1. House-Hunting Expenses - This includes all expenses related to travel for the employee and immediate family for up to two trips.
2. Travel and in-transit costs - Includes cost of transportation, lodging for the employee, and immediate family living at home. For this move, only one trip from the prior residence is to be included in the reimbursement. In addition, if the family moves by motor vehicle, the number of days is to be limited to those required, assuming 500 miles per day.  Mileage will be reimbursed using the standard mileage rate for moving that is determined by the IRS annually. The WSU published rates are available on the TravelWayne website.
3. Temporary Living Expenses - Expenses incurred for temporary living arrangements while relocating near the university for up to 3 months after date of hire, but only if specifically approved by the associate vice president, dean, or above.
4. Moving of Household and Personal Effects - Includes actual costs of packing, transporting, and unpacking household effects; in-transit storage costs; insurance; and moving household pets.
5. A reasonable cost for storage of household goods may be included for up to 30 days.  

Note: The amount and type of reimbursement, for travel and meal expenses for the above trips, are to adhere to the guidelines (daily meal maximum, coach fare for airlines, etc.,) as outlined in APPM section 7.1 Travel Expense Policies and Procedures.

If desired, the movement of household goods may be coordinated through the Procurement & Strategic Sourcing (Procurement) Department via the normal purchase order process. Procurement has strategic suppliers to provide moving services. The new hire should coordinate a home walk through with the strategic supplier in order for them to provide a binding "guaranteed not to exceed" quote.

Alternatively, the new hire may choose to arrange the move without using the University strategic supplier, may pay a commercial carrier/truck rental company directly, and subsequently request reimbursement from the University. If the new hire elects to coordinate their relocation through a moving company other than the University strategic supplier, the University will not issue a purchase order and the reimbursement process is the only option available to the new hire.

Items which may not be reimbursed include:

1. Moving expenses for special items, such as livestock, boats, recreational vehicles and major recreational equipment items.
2. Living and commuting expenses, other than indicated above, subsequent to commencement of employment.

When the new hire's spouse moves simultaneously to another area employer, all moving expenses are to be prorated if reimbursement from the other employer is forthcoming.

PROCEDURE

Department Responsibility/Action:

1. If the move was coordinated through the University's strategic supplier for moving, establish a WayneBuy purchase order against the appropriate funds utilizing GL Account code 721J1 or 721J2 as appropriate for consistent recording. Upon completion of the move, submit the invoice(s) against the purchase order to Disbursements to initiate payment to the vendor. Refer to APPM Section 2.2 Initiating a Request.
2. If the move was coordinated by the new hire and the University's strategic supplier was not used, reimburse the new hire utilizing the WayneBuy Direct Payment Request (DPR) process utilizing GL Account code 721J1 or 721J2 as appropriate for consistent recording. All reimbursements must be accompanied by adequate receipts supporting the expenses, in accordance with established expense guidelines. Refer to APPM Section 1.3.2 Special Payment Authorization, (SPA) 10-102A.

Purchasing Department Responsibility/Action:

1. If the move was coordinated through the University's strategic supplier, process the requisition to establish a WayneBuy purchase order.  Refer to APPM Section 2.3, the Purchase Order Process.

Disbursements Responsibility/Action:

1. Run quarterly reports to identify expenses against the moving expense general ledger accounts.  Provide employee totals to Payroll for appropriate IRS W-2 Withholding. Communicate the information to the affected new hire employees.

Payroll Responsibility/Action:

1. Review the report information provided by Disbursements, and apply to employee's W2 information to trigger appropriate tax withholding.

APPENDICES

1. N/A

RELATED UNIVERSITY/BOARD POLICIES

1. APPM Section 2.2 Initiating a Request
2. APPM Section 7.1 Travel Expense Policies and Procedures
3. APPM Section 1.3.2 Special Payment Authorization, (SPA) 10-102A

Effective Date: Prior to 2000

Revised Date: 9/16/2019

Reviewed Date: 9/16/2019

To be reviewed, at minimum, every three years and/or revised as needed by: Associate Director of Disbursements, reporting to the AVP for Business Services

Next Review By Date: 9/16/2022

SUPERSEDES POLICY

1. N/A

HISTORICAL DATES

08/5/2016, 03/18/2012