NEW EMPLOYEE MOVING POLICY
The university may pay reasonable expenses for a newly hired faculty or staff member to move his or her family from their former residence to their new residence.
Reason for Policy/Purpose
This policy is required for the effective communication of university policies regarding new employee moving.
Who Needs to Know This Policy
All members of The University of Southern Mississippi community.
Website Address for this Policy
The University may pay reasonable expenses for a newly hired faculty or staff member to move his or her family from their former residence to their new residence. Departments wishing to pay moving expenses for new employees may pay full or partial expenses, provided the funds are available in their budget. The allowable moving expense must be referenced in the offer letter to the employee as well as reference to any expenses that are not normally reimbursed. All moving reimbursements should be done within 90 days of the employee’s start date.
USM has established pricing agreements with Armstrong Relocation-United Van Lines (www.usmrelocation.com) which provide many benefits and substantial discounts to a new employee. The new employee is responsible for contracting for his or her own move. The move itself is solely the responsibility of the new employee. The contract for the move, along with any problems that may result from the move, is between the employee and the moving company. The moving company is only authorized to transport household goods in accordance with the provisions outlined in this policy. Services outside of these provisions and/or which are not pre-approved in writing are the personal financial responsibility of the relocating employee. Competitive quotes are not required but are recommended. Fiscal prudence and common sense should be used when determining a moving carrier.
Reimbursements are limited to actual costs incurred up to the amounts agreed to by the department and the employee within the limits outlined in this policy.
Expenses reimbursed under this policy
If payment is made to an individual (cannot be a family member) for assistance in loading or unloading, an invoice or a signed document showing recipients name, address, phone number and signature reflecting receipt of money must be provided for reimbursement. Employee must provide proof of payment (copy of front and back of check).
Mileage rate – Based on the approved mileage rate set by the Mississippi Department of Finance and Administration.
Expenses not reimbursed under this policy unless referenced in the offer letter
Since the IRS allows a deduction for the cost of moving your household goods and personal effects and the cost of traveling (including lodging) to your new home, reimbursement for these expenses will not be reported as taxable income. This is the case regardless of whether the reimbursement is made to the employee or to a third party. It should be noted that only the primary one-way move to your new home is non-taxable.
The IRS considers reimbursement for other moving expenses as taxable income that are subject to income tax withholding, Social Security and Medicare. After all of your moving expenses are processed, you will receive a letter from the Tax Compliance Officer explaining which of the reimbursable expenses the IRS considers taxable income. The letter will then explain that these expenses will be included as income on your next paycheck and taxed accordingly.
The following is a list of some of the expenses that may be reimbursed but that are considered taxable income by the IRS. Please refer to IRS Publication 521 for a complete list of non-deductible/taxable moving expenses.
Please note that employees must work full time for at least 39 weeks in the first 12 months after moving to be able to deduct moving expenses. The entire reimbursement of moving expenses is taxable if you do not meet this 39-week requirement. In order to deduct moving expenses for tax purposes, the location of your new main job must be at least 50 miles farther from your former residence than your old main job location was.
The Director of Procurement and Contract Services is responsible for the review of this policy every four years (or whenever circumstances require immediate review).
Employee Moving Reimbursement Form available at https://www.usm.edu/ procurement/files/apforms/ap_moving_form.xlsx (Also found on the Accounts Payable Forms and Instructions website at https://www.usm.edu/procurement-contract-services/accounts-payable-forms-and-instructions)
Please see IRS Publication 521 for more information on Moving Expenses. This publication is available on the IRS website –http://www.irs.gov/ .
Amendments: Month, Day, Year – summary of changes
11/01/11: Formatted for Institutional Policies website.
02/20/13: Formatted for template. Minor editing throughout.