POLICY AND PROCEDURES FOR APPROVAL AND REIMBURSEMENT FOR NEW EMPLOYEE RELOCATION. B. The move must be in the best interest of the University.

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1 POLICY AND PROCEDURES FOR APPROVAL AND REIMBURSEMENT FOR NEW EMPLOYEE RELOCATION We welcome our new employees to the University of North Florida and to the Greater Jacksonville area. The following information is provided to assist University departments and employees with the process of moving a new hire s personal effects and property from their former residence to their new home. This document also provides information to assist you and your department in the decision making process regarding the allowable cost pertaining to the employees move. We hope that the move is safe, successful and without incident. Should you have any questions regarding any information found in this document you may contact the Purchasing Department at or the Accounts Payable Office at , or you may check the departmental WebPages on the University s website at I. Who is Eligible for Reimbursement of Moving Relocation Expenses A. Full time permanent employees: Generally at the Director level or higher, but exceptions may be made depending on circumstances where they are warranted. B. The move must be in the best interest of the University. II. QUALIFIED MOVING EXPENSES Qualified moving expenses are those expenditures reimbursable by the University for moves preapproved for qualified new employees and the family members of the household from the former home to a new home. Qualified moving expenses, if not paid by an employer, would be those expenses that may be deductible from an individual s tax return when filed. The requirements for qualifying to be authorized for either payment or reimbursement of moving expenditures are listed below along with specific items that may be included in the reimbursement. While qualified moving expense can generally be excluded from an employee s wages, payments (reimbursements) made directly to employees for qualified expenses will be includable on form W-2 for tax reporting purposes as required by the IRS. Payments made to third party movers for qualified moving expenses are excludable from W-2 reporting. A) Payments to vendors or reimbursements to employees for certain moving expenses incurred after December 31, 1993, are considered "qualified moving expenses", provided the move itself meet the following four conditions and must be documented when the payment is made: 1) The expenses are reasonable expenses for moving household goods and personal effects from the former residence to the new residence, and for certain other travel expenses (including lodging) from the former residence to the new place of residence. Moving of household goods are required to be in the most direct and shortest route available and may not include side trips.

2 2) The expense does not include any meals. 3) The employee s new principal place of work is at least 50 miles farther from his/her former residence than was his/her former principal place of work, or if the taxpayer had no former principal place of work, is at least 50 miles from his former residence and, 4) The employing agency reasonably believes, at the time of payment or reimbursement of moving expenses, that during the 12-month period immediately following his or her arrival in the general location of his new principal place of work, the taxpayer will be a full-time employee, in such general location, during at least 39 weeks. A) Payment or reimbursement of moving expenses would be up to the amount specified by the issuing department but are limited as noted below. Expenses that meet the criteria for qualified moving expenses may include the following: 1) Packing and crating. 2) Shipping of household goods and personal effects or moving a mobile home (any vehicle used as a home). a. Transporting the household goods, appliances or personal effects up to the Net Tare Weight of pounds by common carrier, rental truck or trailer, or a vehicle or boat, when preauthorized. 3) Normal liability insurance of the common carrier (not valuation insurance). 4) Approved liability insurance of rental vehicle or truck used in the move. 5) Connecting or disconnecting utilities required because the employee is moving their household goods, appliances or personal effects. 6) Where necessary, reasonable expenses for shipping the employee s automobile to their new home (limited to one vehicle). 7) If the employee drives their vehicle, mileage of $.17 per mile (2017) may be claimed. (Please note that this amount is less than the amount allowed under Section of the Florida Statutes for authorized travel reimbursement). You may include parking and toll fees necessary in the course of the move. You may not include repair parts or general repairs and maintenance, insurance or depreciation for an employee s car. 8) You may include lodging as part of the move provided the expense is incurred during the move and is in direct route to the new location. However, you may not include lodging within the location of the new headquarters. It is assumed that individuals will have acquired a new residence prior to the move.

3 9) If the move represents the commencement of work by a current employee at a new principal place of work located outside the United States and its possessions, the reasonable expenses may also include those for moving household goods and personal effects to and from storage, and of storing such goods and effects for part or all of the period during which the new place of work continues to be the employee s principal place of work. 10) There may only be one move of a single residence to the new employee s home or apartment. In certain circumstances where there are two residences, you can include the cost of moving household goods from a place other than the primary former home. However, you are limited to only include the amount it would have cost to move the household goods from the employees primary home. Example: A new employee s primary residence before being hired is in Orlando but was on an assignment in Miami. It will cost $ to move the household goods from Miami, but had the goods been in Orlando, it would only have cost $ You can include up to $ , for moving the goods from Miami. III. NONQUALIFIED MOVING EXPENSE Nonqualified moving expenses represent the portion of expenditures that are not reimbursable by the University for moves that have been pre-approved for new employees and their family members for household goods from the former home to a new home. Non-qualified moving expenses would be those expenses employees may not be entitled to deductions for when filing their tax returns. Current reporting requirements with the Internal Revenue Service provide that the following Non-Qualified Moving Expenses if they were allowed to be paid, to third parties or directly to the employee, would be reported in the employee s W-2 gross wages and taxed at the time they are reported: A. Pre-move house or apartment hunting trips. B. Temporary living expenses in the general area of the new workplace. C. Meals connected with the relocation. D. Per Diem allowances. E. Taxi fees. F. Mileage in excess of $.17 per mile for (Please note that this amount is less than the amount allowed under Section of the Florida Statutes for authorized travel reimbursement). You may include parking and toll fees necessary in the course of the move. You may not deduct repair parts or general repairs and maintenance, insurance or depreciation for your car.

4 G. Lodging may not include within the general vicinity of location of the new headquarters. It is assumed that individuals will have acquired a new residence prior to the move. H. Unpacking costs. I. Cleaning of any residence in connection with a move. J. Late charges. K. Third party payments to independent contractors hired by the employee to assist with the move when the employee is moving themselves. L. Extra stops. M. Storage, except as provide for foreign moves as noted in the paragraph A. 9) above dealing with Qualified Moving Expenses (employees moving outside the US). N. Valuation charges for contents. Insurance that covers damage or replacement of the contents being moved. However, it is recommended that employees purchase this insurance even though the cost is not reimbursable. IV. Departmental Procedures Requirements A. University departments must request authorization from the Office of Human Resources for approval to pay moving expenses. 1. Obtain Division Vice President approval 2. Obtain approval from the Office of Human Resources. 3. Include sufficient documentation to substantiate the four requirements indicated in part II. A. 1) to 4) above. B. Forward the approval and Banner requisition to the Purchasing Department. The requisition must contain the following information: employee name, old address and phone number, new address (if known) and desired date of move. C. The purchasing office will contact one or more of the University s contracted movers. D. The moving company will contact the new employee for an appointment to provide estimate of move. E. Upon receipt of the estimate by purchasing from the mover, a purchase order will be issued to the moving company to authorize the move. F. The new employee and requesting department will be notified of the issuance of the purchase order.

5 G. After completion of the move, attach receipts, the prior approval form and other documentation as noted in IV, A, above indicating the purchase order number, and submit to Accounts Payable for payment. H. Submit copies of all documentation to the Payroll Office. V. Moving Professional Equipment and Books The payment for separately moving professional equipment and books necessary for employee job performance, where those items are approved to be housed at the University, is not part of the employee moving expense program. In cases where there are items that need to be moved that are not part of the employee move of their household belongings, but those items are necessitated by the relocation, departments must contact the University Purchasing Department to submit a requisition to have those items moved. It is important to understand that moving these items is not part of the move for the employee s personal effects and they need to be separated because of possible tax issues. The above information is provided to establish moving expense eligibility and authorizing moving expenses or reimbursement for new employees. Revised 06/05/2017