Moving and Relocation Training Course

Tier 3 Policy

Contact Information10 South Sixth St

Richmond, VA Box 980327

828-1077 (P)828-9188 (F)

http://procurement.vcu.edu/i-want-to/plan-moving-relocation

To be eligible for reimbursement, the employee’s relocation must meet the following requirements: Relocation at the Employer’s Request: The relocation must be at

the request of, and for the good of the University as determined by the Authorized Approver.

Relocation Distance: The distance between the new work location and the former residence must be at least 50 miles greater than the distance between the old work location and the former residence.

One-Year Employment: The employee must satisfactorily maintain employment on a full-time basis at least one year or as specified by the Agreement for Moving and Relocation Expenses commencing on the date that the employee starts work on a regular basis at the new location

Maximum reimbursement is limited to $15,000, excluding Common Carrier expenses and up to thirty (30) days of temporary (in-transit) storage.

A maximum amount is not placed on Common Carrier and temporary storage expenses.

Expenses must be reasonable and necessary Reimbursement happens after the employee executes an employment

tenure agreement Expenses must be submitted within 12 months of the employee’s official

start date If expenses are submitted after 12 months, approval must be obtained

with Authorized Approval Travel related to moving and relocation eligible for reimbursement are

limited to: Trips for actual house hunting The initial trip (employee’s move to new residence), after employment to the new

duty station The trip to bring the family to the new residence (temporary or permanent) Rental cars may be reimbursed under certain circumstances

Mileage Must not exceed the IRS mileage rate established at the time of travel.

All mileage reimbursements over the amount allowed by IRS as a deduction are taxable.

Current rate (as of 01/01/14) is $.560/mile. 2013 rate (as of 01/01/13) is $.565/mile.

Employee’s Spouse Is State Employee If the employee’s spouse is a State employee and otherwise eligible for

moving and relocation expenses, reimbursement of any such expenses will be paid to only one employee within the limits prescribed and only to move the primary household to the new location.

Pre-Employment Expenses Travel related to testing, interviewing and related activities incurred by

or for a prospective employee before the applicant has accepted the employment offer are termed pre-employment expenses are NOT considered moving and relocation expenses.

Included in the $15,000 limitation. House hunting expenses include the following for employee

and spouse while traveling: Cost of transportation (including rental car) Meals (CONUS rates)

▪ Travel policy regarding meal per diem applies.▪ http://procurement.vcu.edu/i-want-to/travel/learn-about-meal-per-diem

Lodging (CONUS rates)▪ Travel policy regarding lodging limitations and documentation

applies.▪ http://procurement.vcu.edu/i-want-to/travel/learn-about-lodging

A limit of 3 trips for the employee and 3 trips for the spouse.

The maximum number of reimbursable lodging nights is 15. A night of combined lodging for both employee and spouse counts as one night.

Included in the $15,000 limitation.

Reimbursement for reasonable lodging or rent may be claimed for a period of 90 days beginning no earlier than 30 days prior to the 1st day of employment.

Reasonable residential parking fees will be reimbursed during the 90 days of temporary quarters.

Expenses for meals may be claimed for the first 30 days of residence in temporary quarters.

Laundry or dry cleaning expenses are not reimbursable.

Included in the $15,000 limitation. A copy of the closing statement, signed by the closing

attorney, the realtor, or the seller, must be included as supportive documentation when requesting reimbursement.

Allowable Expenses: Actual expense of real estate commission Attorney fees Escrow fees State or local transfer taxes Pest inspections

Disallowable Expenses: Sales commissions & similar expenses if the employee acts as a selling

agent (closing and legal costs are allowed) Advertising and “Fix-up” costs Loss sustained on sale of residence Real estate and capital gains taxes Payment or loan payment charges that are negotiable “Carrying” costs (maintenance fees, utilities, principal, etc.) Mortgage penalties Buyer’s closing costs, including Virginia fees

Cancellation of Lease: The settlement of a lease in the former residence is reimbursable if the

settlement is due to moving and relocation.

Actual costs for common carrier expenses are allowed in addition to the $15,000 limitation

Actual costs paid for common carrier transportation of the employee’s household goods and personal effects from the former principal residence to the new residence are reimbursable.

Self Moving (included in the $15,000 limitation) Moving vehicle rental

▪ Moving van, truck, trailer, hand truck, or other appropriate moving equipment, vehicles and supplies are reimbursable with the rental company receipt. Fuel is reimbursable.

▪ Moving supplies, such as packing paper, boxes or cartons, are reimbursable with itemized receipts. The amount for moving supplies must not exceed $500.

Labor used during the move▪ Limited to a reasonable hourly wage not to exceed $500. Labor

provided by the employee or immediate family members is not reimbursable.

Mileage Reimbursable at the current IRS rate. A car or truck with a trailer in tow will also be reimbursed at the

mileage rate. Tolls

A receipt is required for reimbursement if the individual claim is >$25. Storage Expense (excluded from the $15,000 limitation)

The expense for a maximum of 30 days temporary (in-transit) storage of household goods is reimbursable of the employee cannot move directly into the new residence.

Included in the $15,000 limitation

To qualify for reimbursement, the relocated employee must have owned a primary residence at his prior location, which due to relocation resulted in disposal of the residence.

Purchase of a second residence, investment property, business property, or resort/ vacation property at the new site is NOT allowed.

Allowable Expenses: VA funding fee, Loan origination fee, or processing fee, Mortgage

survey, Appraisal fee, Credit report, Title Search, Recording fee, Title insurance, Attorney fee, Home Inspection (Limit 1), Notary fees

Non-Allowable Expenses: Utility deposits and/or connection fees / Deposit for Rent Real estate taxes, prepaid or otherwise Capital gains taxes Mortgage loan differential Realtor fees related to purchasing Remodeling or redecorating expenses Points, discount fees, or loan payment charges Repair and maintenance costs Homeowner Insurance / Homeowner warranty fees Private mortgage loan insurance Permit fees such as building, sewer, and zoning Deposit for rent

Closing within 12 months The replacement (closing) of the prior primary residence must be

accomplished within 12 months after the official start date of employment. Extenuating circumstances that result in the 12 month period prior to the

purchase (closing) of a replacement home may be approved by the Authorized Approver for up to an additional 12 months.

Non-reimbursable expenses include, but are not limited to:

Insurance in excess of bulk rate coverage provided by the Common Carrier

The cost to transport recreation vehicles, such as yachts Laundry or dry cleaning while in temporary quarters The cost to move a pet Personal vehicle damage Tuning pianos after move Fines while moving

Moving and Relocation Agreement

Employee Moving and Relocation Expense Information Form

Travel and Food Expense Reimbursement Voucher (T&FERV)

http://procurement.vcu.edu/i-want-to/plan-moving-relocation/#.Ul6l8dKsghU

Moving and Relocation Agreement for M&R Expenses:

Must be signed prior to reimbursing expenses

New Employee signature required

Total amount approved for the move▪ On the Agreement, specify “inclusive” or “exclusive” of Common Carrier

Authorized Approver signature required

Travel & Food Expense Reimbursement Voucher (T&FERV) Should be filled out with each M&R Reimbursement (not

required for common carrier/storage expense on a Purchase Order)▪ Traveler’s Name, Home Address, SS#, and Signature▪ Traveler’s Supervisor’s Signature▪ Detailed expenses listed separately by date▪ Common Carrier and Packing Supplies should be listed under Other ▪ Gas, rental vehicle, etc should be listed under Car Rental and Gas

Expense▪ Temporary housing, etc should be listed under Lodging▪ Meals should be listed under Per Diem▪ Business Purpose stated on the T&FERV (Moving and Relocation, etc.)

▪ If Additional Space is needed, use additional tabs at bottom of form “T&FERV(2)” “T&FERV(3)”

Employee Moving and Relocation Expense Information Form Filling out the top of the form:

Agency Name: VCU Agency Code = 236 Reimbursement Number Final Reimbursement: Yes or No Employee Name Employee V# Employee Home Address Date Employed Date Agreement Signed Signatures

▪ New Employee’s Signature and Date▪ Authorized Approver Signature and Date

Employee Moving and Relocation Expense Form (Cont.) Taxable Expenses

Type of Moving Expenses  Taxable Expenses:  

Pre-move travel and lodging payments excluding meals:  

All travel expenses (i.e. air, mileage at IRS allowable rate, rental vehicle and lodging) related to house hunting and other allowable pre-move trips.  House Hunting Trips: Limited to 3 trips for employee and 3 trips for spouse.  Maximum # of nights = 15 (employee and spouse combined lodging counts as 1 night).

Number of trips:  _________  Number of nights: ________  

Temporary quarters travel and lodging payments

Temporary quarters: Up to 90 days of reasonable lodging or rent; Reasonable residential parking fees during temporary quarters.

From:__________ To:__________  

Total meal payments for pre-move house hunting and

Overnight per diem during pre-move and house hunting trips, and during first 30 days of temporary quarters; rates are set by the GSA and are based on the loding location.  

temporary quarters  

Total meal payments incurred during travel from old toOvernight per diem during final move; rates are set by the GSA and are based on the loding location.

new home  Travel - mileage in excess of IRS allowable rate DO NOT USE THIS FIELDQualified expenses of buying a new home See qualifying expenses on slide 12Qualified expenses of selling old home See qualifying expenses on slide 8

Other payments (Specify below or on an attached sheet)Include items such as lease cancellation on former residence.

Employee Moving and Relocation Expense Information Form (Cont.)

Non-Taxable ExpensesNon-taxable Expenses:  

Transportation - Common Carrier

Include Common Carrier expenses personally paid or paid on a Purchase Order.  If paid on a purchase order, this should be the only expense included on this moving and relocation submission.  For more information about how to do business with a common carrier, see: http://procurement.vcu.edu/i-want-to/plan-moving-relocation/learn-about-full-service-moving-company/#.Uma_i3Csiew

Transportation other than Common Carrier (i.e.: Moving

Include moving van, hand truck, or other appropriate moving equipment expenses, and gas used by the rental vehicle; packing supplies, such as boxes and packing paper (not to exceed $500) and labor used during the move (not to exceed $500).

vehicle rental)  

Storage (max 30 days)

Maximum if 30 days of temporary (in-transit) storage of household goods, if employee cannot move directly into new residence.

Date From:_______To:_______  

Travel and lodging payments excluding meals for move

Include all travel and lodging expenses, except for meals, related to the final move from old to new residence.

from old to new home (mileage at IRS allowable rate)  

Employee Moving and Relocation Expense Information Form (Cont.)

When filling out this form, be sure to indicate the expenses for this reimbursement in “Total This Report”, as well as indicate expenses reimbursed on previous submissions in “Total All Prior Reimbursements”. This allows all moving and relocation spend to be recorded and tracked in order to ensure allowable budget/policy is not exceeded.

Example

Total This Total All Prior  Report Reimbursements Cumulative Totals

Use this column for expenses to be reimbursed to the employee or paid to the common carrier/storage vendor on a Purchase Order on behalf of the employee.

Use this column for expenses previously reimbursed to the employee or paid to the common carrier/storage vendor on a Purchase Order on behalf of the employee.

This column is used to calculate cumulative total reimbursement amounts and payments to vendors to track budget spend.

  Total This Total All Prior  Type of Moving Expenses Report Reimbursements Cumulative Totals

Taxable Expenses:      Pre-move travel and lodging payments excluding meals:      Number of trips: ____2_____ 600.00 200.00 800.00 Number of nights: _____6___      

Employee Moving and Relocation Expense Information Form (Cont.)

Example of a completely filled out form Be sure to obtain required signatures

EMPLOYEE MOVING AND RELOCATION EXPENSE INFORMATION      Agency Name: ____Virginia Commonwealth University____________________________________ Agency Code: 236   Reimbursement Number: ___2__________ Is this the final reimbursement? Yes _____ No __X___   

Employee Name: _John Doe_________________________________ Employee Number V00000000   

Address: ___1234 Example Ln.__________________________________________________________________   City: __Richmond_________________________________________________ State: ___VA_______ Zip : __23223_____   

Date Employed: _____xx/xx/xxxx_________Date Reimbursement Agreement Signed_______________ xx/xx/xxxx_

         Total This Total All Prior  

Type of Moving Expenses Report Reimbursements Cumulative TotalsTaxable Expenses:      Pre-move travel and lodging payments excluding meals:      Number of trips: ____2_____ 600.00 200.00 800.00 Number of nights: _____6___      Temporary quarters travel and lodging payments      From:__________ To:__________ - Total meal payments for pre-move house hunting and      temporary quarters 200.00 200.00 Total meal payments incurred during travel from old to      new home     - Travel - mileage in excess of IRS allowable rate     - Qualified expenses of buying a new home     - Qualified expenses of selling old home     - Other payments (Specify below or on an attached sheet)       -        Subtotal Taxable Expenses 800.00 200.00 1,000.00 Non-taxable Expenses:      Transportation - Common Carrier   8,000.00 8,000.00 Transportation other than Common Carrier (i.e.: Moving      vehicle rental)     - Storage (max 30 days)      Date From:_______To:_______      Travel and lodging payments excluding meals for move      from old to new home (mileage at IRS allowable rate) 1,500.00 1,500.00 Subtotal Non-Taxable Expenses 1,500.00 8,000.00 9,500.00        GRAND TOTAL 2,300.00 8,200.00 10,500.00

Reimbursement Procedures Reimbursement to employees is paid through Payroll (e.g.: 1st and 16th of

the month)

Third party payments may only be made to the common carriers for transportation of the employee’s household goods and personal effects from the former residence to the new residence or for temporary storage of employee’s household goods up to 30 days if an employee can’t move into the new residence directly

No other third-party payments can be made for moving and relocation expenses

A copy of the Moving and Relocation Expense Summary Form must be attached, along with the required invoices, to the back of each voucher submitted

An adjustment to the employee’s year-to-date gross pay must be made for each third-party reimbursement

Department and Employee Responsibilities

Obtain Original/Itemized Receipts: Each employee eligible for moving and relocation expense reimbursement is responsible for obtaining original receipts and other documentation that are necessary to support all claims for reimbursement

Know Your Limits: Examples, but not limited to 90 days Temporary Housing, 30 days Temporary Storage, 3 quotes needed for non-contracted common carrier, Maximum reimbursement limited to $15,000, excluding Common Carrier Expenses.

Timely Submission: Each designated category of reimbursement expenses should be itemized and submitted for payment within 30 days after the last expenditure is made or the last invoice is received for expenses in a given category

Know Your Deadlines: All claims for payment should be submitted within 30 days after the employee moves into the new permanent residence, but no later than 12 months after beginning employment at the new location, unless extension is granted

Know Your Procedures: All expenses submitted for reimbursement must be actual, reasonable, necessary, and within state and University guidelines. New Employees are responsible for all information contained within VCU Procurement Moving & Relocation procedures (http://procurement.vcu.edu/i-want-to/plan-moving-relocation)

If Employment is Terminated: If 12 month employment term is not met by the employee, then all moving and relocation expenses, including all related taxes deducted, must be refunded and employee’s gross income will be adjusted by the agency for the total amount refunded to the agency

Plan Moving & Relocation: http://procurement.vcu.edu/i-want-to/plan-moving-relocation

Learn Policies and Procedures: http://procurement.vcu.edu/i-want-to/plan-moving-relocation/learn-about-moving-and-relocation-policies-and-procedures

Moving & Relocation Policy:http://procurement.vcu.edu/files/MovingandRelocationPolicy.pdf

Learn About Real Estate Firms on Contract: http://www.provost.vcu.edu/ofrr/welcome.html

Complete and Submit your Moving & Relocation Reimbursement (Required Forms under “Related Documents”):

http://procurement.vcu.edu/complete-and-submit-your-moving-and-relocation-reimbursement/#.UmbF2HCsghU