75.38 - Moving Expenses Reimbursement for UI Personnel

Owner:

• Position: Accounts Payable Manager
• Email: ap-staff@uidaho.edu 

Last updated: May 1, 2018

A. General. In order to recruit the best qualified person. UI will reimburse a newly hired employee for actual and reasonable moving expenses as a condition of securing his or her employment, subject to the limits described below. In addition, UI may, but is not obligated to 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. [ed. 7-07, 2-18, rev. 11-10]

B. Approval, Limitations, and Funds Required. All or some portion of the moving expenses of an employee may be reimbursed when the payment is in UI’s interest, when funds are available, and when approved in writing by the president, the provost, a vice president, or a dean and, under certain circumstances, by the Board of Examiners before the actual move. Maximum moving expense reimbursement will not exceed the lesser of 10% of the employee’s base salary or $15,000. If more than one member of a household is employed by UI, moving reimbursement will be allowed for one employee only and the amount will be based on the employee with the greater base salary. The University reports all moving reimbursements to the Secretary of the Board of Examiners annually. [rev. 11-10, 2-18, ed. 5-18]

C. Moving Expenses Defined. Moving expenses as used in this section, mean the actual and reasonable expenses incurred in the relocation of household goods and also travel expenses (mileage or airfare, lodging and food), to the extent that they are directly related to the transport of household goods. [ed. 7-07, 11-10, rev. 2-18]

D. Household Goods Defined. Household goods means household furnishings, personal effects, and normal equipment and supplies used to maintain and enjoy a dwelling, including the employee’s professional library. [rev. 2-18]

E. Items Eligible for Reimbursement. Moving expenses allowable for reimbursement (original receipts required) include: [add. 2-18]

• One house-hunting trip for up to two people (travel, lodging and in-state per diem for up to 5 days)
• Transportation of household goods and personal effects (see limitations in paragraph F below)
• Personal property insurance up to replacement value not to exceed $100 of additional insurance premium in excess of that provided by the mover
• Storage of household goods for a period of no longer than 30 consecutive days
• Transportation of up to two personal vehicles (see paragraph G below)
• Parking fees and tolls paid during moving
• Travel expenses (lodging and per diem) for employee and up to 3 dependents one-way to employment location for a reasonable transit period, not to exceed 10 calendar days

F. Items Excluded from Reimbursement. UI does not reimburse expenses for transporting campers, trailers, boats, snowmobiles, airplanes, mobile homes that are not the primary residence of the employee, explosives, flammables, firearms, ammunition, perishable foodstuffs, building materials, sand, animals, plants, firewood, or other non-household items. UI does not reimburse expenses incurred in any real estate transactions associated with the move, nor for carpet, drapery, or other cleaning services, disassembly or reassembly of items, appliance service, or alterations to structures or items. It is suggested that employees personally arrange for moving of articles of high sentimental value, jewelry, negotiables, and collector’s items. [ed. 11-10, ed. & ren. 2-18]

G. Reimbursement for Transporting Vehicles. UI may reimburse the employee for one-way transport of up to two (2) privately owned vehicles (POV) from the old to the new location by the most economical means. The UI and employee shall choose the most economical mode of transportation from the following:

G-1. Driving Vehicles. The employee (or dependent) may drive the vehicle(s) and receive reimbursement at the current state mileage rate (no receipt required) for use of privately owned vehicles plus per diem and lodging pursuant to UI travel policy; or [rev. 11-10, rev. & ren. 2-18]

G-2. Commercial Vehicle Transport. The employee may hire a commercial moving company to transport the vehicle(s) and receive reimbursement for the transport charges plus travel expenses for the employee and dependents pursuant to UI travel policy. [ren. 2-18]

H. Limitations. Under the State Board of Examiners policy, an employee’s household move must meet the Distance and Time tests below to qualify for reimbursement of moving expenses.

H-1: Distance: 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.

H-2: Time: Moving expenses qualify for reimbursement when incurred within one (1) year from the date the employee started work at UI. [add. 2-18]

I. Employee Obligations. If an employee who receives moving expense reimbursement fails to fulfill his or her contract or appointment obligation and voluntarily resigns within one (1) year of the beginning date of employment, he or she will be required to repay to UI 100% of the moving expense reimbursement received. Individuals who received moving expense reimbursement exceeding $5,000 and who voluntarily resign more than one year and less than two years from the beginning date of employment will be required to repay the amount of reimbursement exceeding $5,000. Individuals who received moving expense reimbursement exceeding $10,000 and who voluntarily resign more than two years and less than three years from the beginning date of employment will be required to repay the amount of reimbursement exceeding $10,000. To the extent possible, these repayments will be withheld from the employee’s final paycheck, as authorized by signing the Moving Expense Reimbursement Form. [ed. 7-07, rev. 11-10, 2-18]

J. Process and Method of Payment.

J-1. Reimbursement of Moving Expenses. After an offer letter is sent to the new employee, a copy must be sent to Purchasing Services. [rev. 11-10]

i) The department sends a written offer letter to the employee or prospective employee, with copy to Purchasing Services. The offer letter must include: [rev. 11-10]

a) the moving expense allowance dollar amount; [rev. 11-10]

b) the consequences of the employee’s failure to fulfill his/her contract; and [ed. 11-10]

c) disclosure of the taxable nature of reimbursed moving expenses.[ed. 11-10, rev. 2-18]

ii) A copy is sent to Purchasing Services. [rev. 11-10]

iii) Purchasing Services sends the new employee a UI welcoming letter, which identifies several moving agents and explains UI’s moving procedures. The new employee is responsible for making all arrangements for their household move. [rev. 11-10, 2-18]

iv) The new employee must submit a completed “Moving Expense Reimbursement Form” with an adequate accounting (original receipts, invoices or similar record) for eligible moving expenses to his or her department contact for reimbursement within 60 days of the completion of the move. The Form is available on the Accounts Payable Forms page. [add. 2-18]

v) UI will reimburse the employee for eligible expenses through the employee’s payroll, with applicable federal and state taxes and other required deductions withheld. [add. 2-18]

K. Information. For questions about eligible moving expenses, see the New Employee Moving Expenses page - https://www.uidaho.edu/finance/controller/accounts-payable/moving-expenses. [ed. 7-07, 11-10, 2-18]

L. Offer Letter. The following information should be inserted into the offer letter: [add. 11-10]

Reimbursement of allowable moving expenses has been approved up to a maximum of $________.

Allowable moving expenses include transportation of household goods, relocation of your family, transportation of two personal vehicles, and a house-hunting trip. Purchasing Services (purchasing@uidaho.edu, 208-885-6116) will assist with questions related to your relocation. [2-18]

Household moves are further governed by all provisions of the Idaho State Board of Examiners policy, available at the State Controller website.

The Tax Cuts and Jobs Act of 2017 repealed the exclusion from gross income for qualified moving expense reimbursements beginning in 2018. Therefore, all expenses reimbursed to or paid on behalf of employees for moving expenses will be treated as taxable income to the employee. [add. 2-18]

Sample offer letters can be obtained from the following UI offices:

M. Exceptions. Unique circumstances that may require an exception to this policy must have prior written approval from the Division of Finance and Administration. Please contact Purchasing Services. [add. 2-18]

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