|Responsible University Administrator:||Vice President of Finance and Administration|
|Responsible Officer:||Director of Procurement and Contract Services|
|Current Revision Date:||04/02/19|
|Next Review Date:||04/02/23|
|End of Policy Date:||N/A|
This policy is required for the effective communication of university policies regarding new employee moving.
All members of The University of Southern Mississippi community.
The University may pay reasonable expenses for a newly hired faculty or staff member to move his or her family from their former residence (outside a 50-mile radius of their primary job location) 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, and the offer letter must reference any expenses that are not normally reimbursed. All moving reimbursements should be done within 90 days of the employee’s initial 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 the problems that may result from the move, is between the employee and the moving company. The moving 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 choosing 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.
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 and 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 will be based on the approved mileage rate set by the Mississippi Department of Finance and Administration.
As of January 1, 2018, the Tax Cuts and Jobs Act of 2017 suspended (until January 1, 2026) the exclusion from taxable income for qualified moving expenses incurred by employees. In other words, unless you are active military, you cannot currently deduct moving expenses on your federal tax return. Further, as of July 1, 2018, the Act suspended (until June 30, 2026) the tax-free reimbursement of qualified moving expenses. As a result of this change in the federal law, moving expenses incurred by employees during calendar years 2018 through 2026 will be treated as wages and paid through the Payroll Department subject to federal, state, and FICA tax withholding. Further, please note that employees may not deduct these expenses on their individual income tax returns respectively. After all your moving expenses are processed, you will receive a letter from the Tax Compliance Officer in October/November that will explain that these expenses will be included as income and taxed accordingly.
IRS Publication 521 contains more detailed information on Moving Expenses. This publication is available on the IRS website-http://www.irs.gov/
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://eduprod.usm.edu/procurement/files/apforms/ap-Moving_form.xlsx (Also found on the Accounts Payable Forms and Instructions website at https://eduprod.usm.edu/procurement-contract-services/accounts-payable-forms-and-instructions).
Amendments: Month, Day, Year – summary of changes
11/01/11: Formatted for Institutional Policies website.
02/20/13: Formatted for template. Minor editing throughout.
Procedure section updated.
General Information section updated.
Expenses Reimbursed Under This Policy section updated.
Expenses Not Reimbursed Under This Policy Unless Referenced in the Offer Letter
Tax Information section updated.
Tax Information section updated to reflect suspension of Tax Cuts and Jobs Act of 2017.