Moving Expenses: Requesting and Processing Reimbursements

Requesting Reimbursement

Use the Research Foundation’s Moving Expense Reimbursement Request and Authorization Form (pdf) to itemize and request reimbursement for moving expenses. Employee moving expenses must be substantiated before reimbursement is made. The following table describes the steps operating locations should take when an employee requests reimbursement for moving expenses:

Step

Action

1

Assist the employee in completion of the Moving Expense Reimbursement Request and Authorization Form (pdf).

2

Request that the employee attach required documentation to validate the expenses listed on the form. The table below provides examples of appropriate documentation for different types of expenses:

Moving Expense

Documentation Required

Commercial Mover

Canceled check or original receipt from mover (if mover was already paid) and an itemized invoice.

Shipping

Receipted bill of lading.

Packing

Authorized certificate of packing.

Storage

Canceled check or original receipt and itemized invoice.

Mileage

Shortest highway route at current IRS reimbursement rate for mileage for moving expenses. This should not to be confused with the corporate travel reimbursement rate for mileage.

Meals and Other Expenses

Original receipts.

3

Obtain required approvals. The Moving Expense Reimbursement Request and Authorization Form (pdf) must be signed by the

- employee to confirm that the expenses listed on the form are accurate.

- project director to attest that the moving expense reimbursement was necessary to
attract the candidate and that sponsor guidelines allow such reimbursement.

- operations manager (or designee) to certify that the payment of moving expenses and
any associated policy waivers are proper and authorized.

Processing the Reimbursement

Operating Location

To process the reimbursement, follow the steps in this table below:

Step

Action

1

Determine whether the payment(s) will be made to the employee and/or to a third party. Ensure that all nonqualified reimbursements are identified for payment directly to the employee.

If the payment will be made to

Then

the employee

Go to Step 2.

a third party

The reimbursement must be qualified and the payment must be made through an Accounts Payable (AP) invoice. A copy of the Moving Expense Reimbursement Request and Authorization Form (pdf) must be included with the documentation for the invoice. For instructions on entering an AP invoice, refer to the work instruction Enter an AP Invoice.

2

Element Entry - Assign the appropriate nonrecurring element from the list below to the employee's assignment record. If there are both Qualified and Nonqualified expense reimbursement, assign both elements.

- Move Exp Qual Direct -- nontaxable

- Move Exp NQual Direct -- taxable

 

In the Entry Values window, enter the amount listed on the Moving Expense Reimbursement Request and Authorization Form (pdf).

For instructions on entering a non-recurring element, refer to the work instruction Enter a Nonrecurring Earnings or Deductions Element.

3

Labor Distribution Entry - An element level labor distribution schedule must be entered for the same pay period with the nonrecurring element. To properly charge fringe benefits, use the appropriate expenditure type listed below:

- Move Exp Qual Element Payments - use Expenditure Type "REL Relocation Non Taxable" (no fringe benefits charged)

- Move Exp NQual Element Payments - use Expenditure Type "SWR Relocation Taxable" (fringe benefits charged)

What to Do if an Employee Resigns

Federally-Funded Projects

If an employee resigns from a federally-funded project for reasons within the employee's control within 12 months of the appointment start date, moving expense reimbursement must be repaid to the federal government. The operations manager must arrange to collect reimbursement amounts from the employee.

Nonfederally-Funded Projects

If an employee resigns from a nonfederally-funded project for reasons within the employee's control within 12 months of the appointment start date, the operations manager may arrange to collect reimbursement amounts from the employee.

Where to Direct Reimbursement Collected from Employee

When the sponsored program account from which the reimbursements were made is

Record Retention

Operating locations and the Office of Human Resources, Payroll Unit, should maintain a copy of the forms.

Both the IRS and NYS laws require that forms and supporting documentation are retained for 4 years after the due date of the tax for the return period to which the record relates or the date the tax is paid, whichever is later.

Example of Processing a Moving Expense Reimbursement

Situation

An individual transfers from Washington, DC to Albany, NY as an incentive to become a Research Foundation employee. The Research Foundation agrees to pay for all of her documented expenses and to waive the 12,000 lbs reimbursement limit.

Requesting Reimbursement

The employee submits the "Moving Expense Reimbursement Request and Authorization Form" with appropriate documentation for the following expenses.

Moving and storage of household goods and personal effects

$7,000

Travel to Albany, NY from Washington, DC:

 

 

Mileage (600 miles at $.19 per mile, the 2011 rate)

114

 

Hotel

450

 

Meals

125

Pre-move house hunting and temporary living expenses:

 

 

Hotel (20 days)

1,500

 

Meals

400

 

Car rental

350

Total

$9,939

Processing the Reimbursement

Steps Taken by Operating Location

Step

Action

1

Review the submitted form and attached documentation.

2

Determine that the employee’s move satisfies the time and distance tests for qualified moving expenses.

3

Determine which of the expenses are qualified and nonqualified moving expenses and indicate this on the form.

4

Determine that the $7,000 move and storage expense will be paid directly to the movers through an accounts payable invoice.

5

Pay the remaining $2,939 to the employee as follows:

- $564 for qualified expenses through the payroll system using the Move Exp Qual Direct

element. (Per IRS rules, meals not included as qualified expenses so $125 not included here)

- $2,375 for nonqualified expenses through the payroll system (this amount will be
taxed) using the Move Exp NQual Direct element.

Where to Find More Information

For information about Research Foundation (RF) and Internal Revenue Service (IRS) requirements regarding reimbursements for moving expenses, see the following documents in the Payroll business area:

Change History

 

 

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