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General
Moving expenses for relocation can be paid for unclassified faculty and staff who move more than 50 miles to their new location. All expenses must be paid with private funds. No state funds can be used, and no exceptions are made. Most of the funds will come from KU Endowment Association (KUEA) fund 725, but some can be paid from Center for Research, Inc. (KUCR) funds 720 and 721. Authority to approve KUEA funded moving expenses continues to reside with the person having the funds, and the responsibility for those funds, on deposit at the KUEA.
Moving office or lab equipment that will be used in the employee’s place of work should be paid separately and not included as part of the employee’s moving expense. It should be paid by the department in the same manner as moving employee’s office (expense account 12120).
Procedures
The first step in paying moving expenses is for the employee and department to complete the written agreement.
Written Agreement
Moving expenses may be paid only after the employee agrees in writing (Form DA-22 ) to remain in University service for 12 months from the date of transfer or appointment, unless separated for reasons beyond the employee's control that are acceptable to the University. If the employee leaves before the 12-month period, the applicant will reimburse the University of Kansas the full amount paid for moving expenses. In the event of an employee's early termination, the Department will be responsible for collecting all amounts reimbursed to the employee and contacting Central Accounting Services. The Designated Official to sign Form DA-22 "Agreement for Reimbursement of Moving Expenses" will reside with the person having the funds, and the responsibility for those funds on deposit with KUEA.
Next, it must be determined what expenses are allowed. Then, decide which are non-taxable and taxable.
Moving Expenses
The Moving Expense Analysis Worksheet (Taxable , Non-taxable) assists with this process. If the new work location is at least 50 miles further from the former residence than the former residence was to the former place of work, (See Moving Expense Analysis Worksheet - Table A) then the following items are considered to be non-taxable and can be reimbursed through Central Accounting & Purchasing Services (CASPUR):
Non-Taxable
Anything not specifically mentioned in this section is taxable.
- Cost of moving personal and household items
Preferred Method—The preferred method for paying a moving company is to have the University direct-billed rather than reimbursing the employee. These payments are submitted directly to KUEA rather than CASPUR. This is much better because it gives the employee much greater flexibility. For example, three estimates are not required. Employees are not limited to moving only 12,000 pounds. There are other restrictions that do not apply when the University is direct-billed. Whenever possible, this method should be used.
Reimbursing the Employee—If the moving company cannot direct-bill the University and the employee must be reimbursed for moving personal and household items, three firm rate bids must be obtained. The bid includes the cost of transportation, material and labor for packing and unpacking, delivery, and insurance. The employee must use the lowest responsible carrier. The employee can only be reimbursed for moving up to 12,000 pounds. If the carrier normally charges by cartons or cubic feet, the actual weight must still be obtained.
Costs associated with disassembling yard toys, patio equipment, window air conditioners, and shelving are taxable reimbursements.
Shipping pets, boats, and vehicles via carrier are taxable reimbursements. Expenses associated with towing a vehicle are reimbursed as a taxable reimbursement.
The employee may be reimbursed for either of the following:
- An allowance of up to $0.30 per mile for moving the home if transported by the employee
- Commercial transportation of the trailer or dwelling including tolls, charges, and permit fees
Self-moves are allowed when deemed desirable by both the employee and the department provided the costs appear reasonable. While estimates are not required, the department may request estimates be provided.
Reimbursable expenses include the rental costs plus insurance of a moving van or trailer or private car mileage (one-way) at the current mileage rate. Fuel for the moving van is reimbursed at the actual amount with receipts or $0.18 per mile without receipts. Repairs for the moving van are not allowed.
Packing material (boxes, tape, etc.) is reimbursable.
Paying others (friends and family) to help move is not a reimbursable expenses. This includes buying meals as “payment” for those helping.
- Storage (30 days or less)
Employees may be reimbursed storage of household goods (does not include automobiles) for a period of 30 days or less as tax exempt before being delivered to the new residence.
Only the employee can be reimbursed for airfare as non taxable. Reimbursement of airfare for other family members is a taxable reimbursement.
Lodging is reimbursed at the state travel rates for employees. The reimbursement is for single occupancy only, even though the employee may be accompanied by his/her family. If incurred, lodging expenses the day before the employee leaves the old location and lodging expenses the day the employee arrives at the new location can be reimbursed.
Taxable
Anything not specifically mentioned above, is a taxable reimbursement. It will be reimbursed by Payroll and submitted through Central Accounting and Purchasing Services. The reimbursement will appear on the employee’s W-2 Form.
When submitting taxable moving expenses to CASPUR, include the completedForm. Below are some common examples of taxable moving expenses:Additional Fringe Benefit Income For W-2 Reporting
Meals while en route to the new residence can be reimbursed. Alcoholic beverages are not reimbursed. Employees can choose to use per diem travel meal allowance rates. If per diem is used, the day and time the employee leaves the old residence and arrives at the new residence along with the number of quarters being reimbursed will need to be submitted with the moving expense paperwork.
Up to 30 days of lodging can be reimbursed as taxable while the employee is occupying temporary lodging and waiting to occupy the new residence. Lodging is reimbursed at the state travel rates for employees. Lodging is reimbursed for single occupancy only, even though the employee may be accompanied by his/her family.
Storage of household goods over 30 days before they are delivered to the new residence is a taxable reimbursement.
- Transportation for Employee and Family Exceeding Tax Exempt Rate
Mileage for the employee and family members between the old and new residence is taxable when it exceeds $0.18 per mile. Up to $0.47 per mile can be reimbursed for FY 2008.
Reimbursement for multiple trips related the move are taxable.
All expenses associated with house hunting are taxable. Lodging, meals, and mileage reimbursement rates follow moving expense rates.
Questions
Please direct moving expense questions to Mike Lewis, Central Accounting and Purchasing Services, malewis@ku.edu, 864-5938.
Procedures
Responsibility |
Action Step |
Department |
Enter into agreement for reimbursement of moving expenses (Form DA-22) with employee. |
State Employee |
Obtain three bids from various commercial carriers and select the lowest responsible carrier. |
Department |
- Determine that the expenditure is legal and proper and complies with regulations as set forth in this policy.
- Use Moving Expense Analysis Worksheet - Table A and B to determine the portion of moving expenses that are allowable. Use table to sort taxable and non-taxable expense receipts.
- If directly paying the commercial moving carrier, send appropriate documentation to KUEA for payment processing.
- All other employee reimbursable expenses - Prepare the payment voucher in PeopleSoft Financials for the non-taxable items. Use Fund 725. Code the moving expenses as expenditure account code: 12130 (employees' personal effects - in-state) or 12140 (employee's personal effects - out-of-state). Attach supporting documentation to voucher log.
- Prepare a Taxable Fringe Sheet for the taxable amounts. Check Moving Expense and indicate the funding source (must be Fund 725). Attach supporting documentation.
- Submit all documentation to Central Accounting Services. The supporting documentation will include:
- Three bids obtained from commercial carriers
- Bill of lading and receipts
- All other moving expense receipts requesting reimbursement for - please separate non-taxable expenses from taxable expenses and attach to the appropriate forms.
- Form DA-22
- Endowment Fund Payment Verification Form
- Payroll's Taxable Fringe Sheet
|
CASPUR |
Review forms and attachments and approve payments as appropriate. CASPUR will then forward taxable expenses to Payroll Office for processing. |
