1014.0	POLICY	TAX TREATMENT AND REPORTING OF MOVING EXPENSES FOR ALL OFFICERS, FACULTY AND STAFF EMPLOYEES
1014.1	STATEMENT	Under the Internal Revenue Code, qualified moving expenses are excluded from the employee's gross income.  Qualified moving expenses are defined as reimbursement for transportation of an employee's household goods and personal effects, and the reasonable costs of travel and lodging (excluding meals) from the old location to the new one.  This includes the expenses of other members of the household only if they continue living with the employee at the new location (Code Sec 217).  All other amounts received or accrued by an employee will be included in the employee's gross wages, subject to applicable withholdings.  In order for these expenses to qualify for the withholding and reporting exclusion, the move must have been in connection with the commencement of employment at Georgetown.  Also, the distance from new employee's old residence and new place of work (Georgetown) must increase at least 50 miles, and the employee must work full-time for a minimum of 39 weeks during the 12 month period following the move.
1014.2	PHILOSOPHY	The purposes of this policy are: to ensure that the tax laws are observed with respect to all arrangements concerning the payment of moving expenses. to ensure that the Payroll Department is appropriately apprised of any consequential arrangement involving moving expenses. to provide guidance to University campuses, schools, departments, and operating units concerning the meaning of applicable statutes and regulations and the nature of the  substantiation requirements necessary to obtain reimbursement and to support either the exclusion or the inclusion of moving expenses in taxable income.
1014.3	PROCEDURES	Qualified Moving Expenses Qualified moving expenses are excluded from the employee's gross income. Qualified moving expenses are defined as (1) transportation of household goods and personal effects, and (2) travel (including lodging but not meals) to the new residence. Procedures for processing qualified moving expense reimbursements are as follows. Expense Voucher All qualified (non-taxable) expense reimbursements should be submitted on either the Expense Voucher (EA) form or the Expense Report. All EA's and Expense Reports which include moving expenses must be forwarded to the Payroll Department for review and processing.  Examples of non-taxable moving expenses include moving company, rental truck, car rental, airline or train ticket, lodging, and expenses associated with moving family members, excluding meals. Procedures for processing moving expenses on an EA are as follows: The request for reimbursement must be supported by a copy of the relocation agreement and original receipts of all  expenses.  The EA must be approved by the Department Head. All travel expenses must be itemized on an Expense Report with account code 74601 and substantiated by original   receipts.  The allowable reimbursement for mileage is .20 per mile plus tolls.  Payments made directly to the moving company are   acceptable.  In this case, Payroll needs to approve the EA with the original moving company invoice.  Purchase Requisition All Purchase Requisitions which include moving expenses, must be forwarded to the Payroll Department for review and processing. Procedures for processing qualified moving expenses on a Purchase Requisition are as follows:  The Purchase Requisition can only be used for the expenses directly related to the cost of moving household goods.  The request for reimbursement must be supported by a copy of the  relocation agreement and original receipts of all expenses.  The Purchase Requisition must be approved by the Department  Head.  Receipts If all original receipts are not available, the employee should provide a written statement identifying the amount and nature of the expenses and that original receipts are not available.  This statement should be signed by the employee, department head, and appropriate campus fiscal officer. Non Qualified Moving Expenses Non-qualified (taxable) moving expenses are considered employee compensation subject to applicable withholdings.  Examples of taxable moving expenses include, but are not limited to: house hunting trips, meals, temporary living expenses, lump sum payments or allowances, closing costs on new home purchases, and mileage reimbursements exceeding the $.20 per mile rate.  Procedures for processing taxable moving expense reimbursements are as follows. Lump Sum Payment Reimbursement for taxable moving expenses should be processed on a Lump Sum Payment form following established procedures. Departments will be charged fringe benefits at the appropriate rate. The Lump Sum Payment form must be approved by the Department Head and forwarded to the Payroll Department for review and processing. No Receipts If the moving expenses incurred in points A. (1) and A. (2) above are not substantiated by original receipts, then the reimbursement must be included in the employee's compensation, subject to applicable withholdings. These reimbursements must be processed as described in B. (1) above. Reporting Requirements All moving expenses will appear on the employee's paycheck stub with the description of "Relo Tax" for relocation taxable and "Relo NT" for relocation non-taxable. All moving expenses processed on a Lump Sum Payment form will be reported as gross income on the employee's Form W-2.
1014.4	RESPONSIBILITY	The only University officials who are authorized to make decisions or representations concerning the tax treatment of moving expenses are the Treasurer and the Controller or their designated representatives (the Payroll Department).  Other University officials should refrain from making promises or representations, either orally or in writing without first consulting with the Treasurer, Controller, or the Payroll Department.  To the extent that any contract of employment contains promises or representations concerning moving expense reimbursements, the University will not be under any obligation to honor such promises or representations unless they are approved in advance by the Treasurer or the Controller.
1014.5	RESOURCE	Contact the University Payroll Department for questions about this policy.