RELOCATION POLICY

BY

LINDA MUNDY

MOVING ALLOWANCE/EXPENSE

REIMBURSEMENT• UNIVERSITY POLICY IV.5.6• http://www.purdue.edu/oop/policies/pages/human_resources/iv_5_6.html

• Implemented April 9, 2007

• Reason for Policy:– Offer competitive employment packages

– Provides increased flexibility

– Enhances the timing of the payment

RELOCATION-PROCEDURES

• Approval Procedures– Vice President, Dean or Director may approve

up to $15,000– Approved moving allowance/expense

reimbursement should be documented in the candidates offer letter or subsequent documentation

– Exceptions require the approval of the executive officers reporting to the president

MOVING ALLOWANCE-PAYMENT PROCEDURES

• Utilize the invoice voucher template/moving direct debit invoice voucher & instructions - http://www.purdue.edu/taxes/Relocation/Moving_Allowance/Welcome.html

• Include a copy of the approved documentation for the moving allowance with the invoice voucher

• Forward to Accounts Payable for processing

MOVING ALLOWANCE-TAX IMPLICATIONS

• Moving allowances are considered taxable• Reported on W-2• Employee may recover income tax withheld by

filing appropriate IRS forms with the tax return• Taxes withheld at the time of payment

– Federal Income – 25%

– State Income – 3.4%

– Social Security – 7.65%

MOVING EXPENSE REIMBURSMENT – PAYMENT

PROCEDURES

• Purpose – To reimburse moving expenses that meet IRS guidelines for tax deductibility

• Prepare a direct invoice voucher or a direct debit invoice voucher

• Attach receipts with proof of payment and a copy of the approved documentation

• Forward to Accounts Payable for processing

MOVING EXPENSE REIMBURSEMENT – TAX

IMPLICATIONS• Moving expense reimbursements are

generally not taxable• Refer to the summary of deductible & non-

deductible moving expenses http://www.purdue.edu/taxes/Relocation/Moving_Allowance/movingdeductgrid.htm

• If a reimbursement is made for a taxable item, it will be added to the employee’s W-2

RELOCATION PROCEDURE-CONTACTS

• Tax Manager – Linda Mundy(765) 494-0521

• Tax Accountant – Pam Hartman(765) 494-7921

• Department Business Managers