75.38 - Payment Procedures for Household Moves

Last updated August 24, 2005 (Moved from Chapter 60 - June 6, 2007)

A. General. In order to recruit the best qualified person UI will reimburse a newly hired employee’s actual and reasonable moving expenses as a condition of securing his or her employment. In addition, UI will reimburse actual and reasonable moving expenses when a current employee is transferred from one official station to another within the state [intrastate] for the benefit and convenience of UI [See APM 60.41, Moving Expenses for UI Personnel].

B. Method of Payment – Claim Voucher. Reimbursement of actual and reasonable moving expenses are reported on a claim voucher [See APM 75.31] and sent to Accounts Payable for processing. The claim voucher must include complete description of items to be reimbursed with complete and original receipts attached. [ed. 6-07]

B-1. Reimbursable Moving Expenses. Moving expenses allowable for reimbursement include the following:

  • Actual receipts and expenses for moving household goods and personal effects
  • Traveling expenses
  • Transporting vehicle expenses [See APM 60.41]
  • Parking fees and tolls paid during moving

NOTE: Personal expenses (E.g., purchases of items that are kept by the employee) are not reimbursable.

B-2. Taxable Expenses. The following are expenses, that if reimbursed with actual moving expenses are considered taxable expenses to be reported with the employee’s income and are subject to withholding.

  • Mileage reimbursement over $.14 per mile
  • Meals while moving from your old residence to your new residence
  • Travel expenses, meals, and lodging for pre-move house hunting trips
  • Meals and lodging while occupying temporary quarters
  • Temporary household goods storage expenses

B-3. Payment Exceeds Maximum Allowance. If the actual expenses paid by UI exceed the maximum allowance, the employee has 90 days to promptly reimburse UI the difference in full. If not paid, the amount will be placed on the employee’s Accounts Receivable for repayment, payroll deduction will be used for accounts with outstanding balances.

C. Method of Payment – Purchase Orders. Purchasing Services, after receiving the proper approval and information, issues a purchase order [See APM 75.32] to the designated vendor. After completion of move, Accounts Payable will receive the invoice to pay against the purchase order. [ed. 6-07]

C-1. Procedures. Purchasing Department Requirements. When Purchasing Services receives the departmental requisition and employment agreement, the new employee is sent a UI welcoming letter. The letter identifies several moving agents. The employee is asked to select three agents from the list and return the choice to Purchasing Services.

C-2. Bids Solicited. Purchasing Services contacts the selected agents and requests a “not-to-exceed” estimate. These estimates are sent to the employee. The employee then negotiates a level of service and chooses one carrier. The employee is required to notify Purchasing Services of their selection.

C-3. Purchase Order Issued. Purchasing Services issues a purchase order to the selected carrier after receiving back written verification of the final cost estimate. [Note: Any adjustments to the final estimate by either the carrier or the employee must be sent in writing with an explanation to Purchasing Services.] Purchasing Services notifies the employee’s department of the carrier selected and the final estimate of costs.

C-4. Payment of Invoice. After completion of move, Accounts Payable will receive the invoice to pay against the purchase order.

C-5. Payment Exceeds Maximum Allowance. If the actual expenses paid by UI exceed the maximum allowances, the employee has 90 days to promptly reimburse UI the difference in full or the amount will be placed on the employee’s Accounts Receivable using payroll deduction to recover the funds.

D. IntraState Moving. Reimbursement for actual and reasonable moving expenses when a current employee is transferred from one official station to another within the state for the benefit and convenience of UI is allowable.

D-1. Authorization and Procedure. All intrastate moves require prior written approval of the department director or designated representative. All intrastate transfers of department personnel shall be in the best interest of the department, and at its discretion. [Reference State of Idaho Moving Policy.] Agreements to reimburse moving expenses which exceed $5,000, must have prior approval of the State Board of Examiners.

D-2. Method of Payment. Reimbursement of actual and reasonable moving expenses are reported on a claim voucher and sent to Accounts Payable for processing. The claim voucher must include an itemized description of items to be reimbursed with complete and original receipts attached.

D-3. Limitations. Time and Distance Tests. In order for qualified moving expenses to be excluded from income, a newly hired or relocated employee’s new work assignment must increase his or her commute by at least 50 miles. If the employee is starting a first full-time job or resuming full-time work after a substantial period of unemployment or part-time work, the new work location must be at least 50 miles from the employee’s old residence. If these qualifications are not met, the full amount of moving expense reimbursement to the employee is considered nonqualified and therefore taxable.

D-4. Reimbursable Moving Expenses. Moving expenses allowable for intrastate moving reimbursement include the following:

  • Actual receipts and expenses for moving household goods and personal effects
  • Traveling expenses
  • Transporting vehicle expenses [See APM 60.41]
  • Parking fees and tolls paid during moving

D-5. Taxable Expenses. The following are expenses that if reimbursed with actual moving expenses are considered taxable expenses to be reported with the employee’s income and are subject to withholding:

  • Mileage reimbursement over $.14 per mile [effective 01/01/04]
  • Meals while moving from your old residence to your new residence
  • Travel expenses, meals, and lodging for pre-move house hunting trips
  • Meals and lodging while occupying temporary quarters
  • Temporary household goods storage expenses

E. Yearly Tax Information. Each December, summaries of moving information are sent out to applicable employees for tax purposes. Applicable employees will receive the original expense documents and receipts of expenses reimbursed, plus a breakdown of moving expense payments received. In addition, included for employee information, reference IRS Publication 521, Moving Expenses, IRS website.

F. Information. Please address any questions or concerns regarding payment procedures of moving expenses to Accounts Payable/Travel Manager at (208) 885-5379.