FP 06 01 09

Policy for Moving Expense Eligibility and Reimbursement

1. Policy for Moving Expense Allowances

A.	The University maintains a University Moving Expense Account administered by the Office of the Vice President for Finance. Any charges to this account MUST be approved by this office.

B.	The University may grant an allowance for moving expenses when the prior residence of a new employee is beyond 50 miles from the University of Cincinnati campus at which the employee works.

C.	An allowance for moving expenses for the following positions may be available from the University Moving Expense Account up to the amounts stated below:

	1)	The University may pay for moving expenses in full for the President, Vice Presidents, Provosts, Deans, and Vice Provosts.

	2)	Upon recommendation of the administrative unit head or Dean, the University may pay for moving expenses for administrators in levels 16 - 23 of the University Classification Plan, Assistant Deans and Associate Deans as follows:

	Employees in levels 16-17		100.00
	Employees in levels 18-19		250.00
	Assistant Deans		250.00
	Employees in levels 20-21		350.00
	Associate Deans		350.00
	Employees in levels 22-23		500.00

	3)	Upon recommendation of the Dean, the University may pay for moving expenses for faculty employees as follows:

	Instructors		100.00
	Assistant Professors		250.00
	Associate Professors		350.00
	Professors		500.00

	4)	Upon recommendation of the administrative unit head, the University may pay for moving expenses for librarians as follows:

	Beginning Librarians		100.00
	Assistant Librarians		250.00
	Associate Librarians		350.00
	Associate Senior Librarians and Senior Librarians		500.00


	5)	The University may not grant an allowance from the University Moving Expense Account for new employees in the auxiliaries, Hoxworth, and branches. However, an allowance from other sources may be negotiated upon approval of the Vice President.

D.	Any allowance from the University Moving Expense Account may be used to cover those costs defined in the current negotiated contract with the moving vendor.

E.	Additional allowances from fund sources other than the University Moving Expense Account and for other employee types may be processed through normal channels.

2. Procedures for the Payment of Moving Expenses

A.	Effective 1/1/94, the Internal Revenue Code qualifies moving expenses as follows:

	Non-Taxable:

	1)	The reasonable costs of transporting household goods and personal effects from the previous residence to the new residence; and

	2)	The reasonable costs of travel and lodging for members of the employee's household in moving from the old location to the new location (one trip per person). If traveling by automobile, non-taxable reimbursements may be based on actual expenses (such as gas and oil, but not repairs, maintenance, depreciation, and insurance), or at the Internal Revenue Service mileage reimbursement rate plus tolls and parking fees.

Taxable:


	3)	Payments made for additional expenses associated with an employment related move are fully taxable as wages, regardless of the source of funds. Examples of such expenses include a portion of the auto mileage, meals while en route to the new location, all costs associated with house-hunting trips, temporary living expenses at the new location, and any costs incurred in selling the old residence or acquiring the new residence.

		In certain instances, the Internal Revenue Service restricts the tax deductibility of various reimbursements. Individuals should check with their own tax advisors to determine the taxability of these reimbursements.

B.	Direct payment of expenses detailed in section 2 (non-taxable) to a moving company may be made regardless of whether the University has agreed to cover all or part of the expenses incurred.


	1)	Moving companies under contract with the University Purchasing Department should be used - see Variant Section).

	2)	Before the move occurs, the employing department requests estimates of costs from the contracted moving companies. If timing will not permit use of the contracted vendors, the prospective employee (with the approval of the vice president) may obtain bids locally. These estimates are submitted with an RX (Purchase Requisition) to the Purchasing Department. If the moving company with the lower estimate is not preferred, a memo justifying the selection must be forwarded to Purchasing.

	3)	The invoice is submitted to Accounts Payable for payment.

	4)	Accounts Payable reports the payment to Payroll & Employee Information Services (PEIS) for inclusion as a "qualified moving expense" (non-taxable) on Form W-2.

In lieu of direct payment, reimbursements to employees for allowable moving expenses detailed in section 2 may be made on payroll checks. Payments to reimburse employees for all allowable moving expenses other than those detailed in section 2 must also be made to employees on payroll checks. All such moving expense reimbursements should be processed by submission of a Personnel Action Form (PAF).

	1)	Qualified moving expenses (non-taxable) are to be reimbursed by use of the moving expense earnings type (MOV).

	2)	All other allowable moving expense reimbursements require use of the taxable lump sum payment earnings type (LSP).

	3)	PAF's requesting reimbursement must be accompanied by the original itemized receipts.

	4)	Taxable payments will generate tax withholdings based on the flat rates applicable to supplemental compensation. All payments will be appropriately reported on Form W-2, either as non-taxable qualified moving expenses or as wages, per Internal Revenue Service regulations.