Payment for relocation expenses is possible for faculty above the rank of instructor, for professional and administrative staff appointed on a full time basis for a period of at least one academic year, and for other University employees with the approval of the Dean or equivalent administrative officer.
Authorization for payment must be approved in advance by the appropriate Dean or equivalent administrative officer. Additional approvals may be required if funding is from contracts and grants administered by the office of Sponsored Projects Administration (SPA).
It is recommended that payment be limited to reimbursement of actual and substantiated moving expenses (qualified or unqualified) not to exceed one month's salary (1/9 of "B" rate or 1/12 of "A" rate depending on which is applicable) or an amount agreed upon at the date of hire. The department should inform employees that pursuant to current internal revenue code provisions, reimbursement of nonqualified moving expenses represents taxable income to the employee and will be reported on form W-2 subject to appropriate payroll tax withholding.
The University of Minnesota will pay moving expenses for newly appointed faculty and staff when necessary to attract a suitable candidate for a position. The University wants to ensure appointees have access to quality services for relocation and that reimbursements comply with state and federal tax laws.
- Moving expenses
- Includes such services as packing, loading, hauling, insuring, temporary storage, etc.
- Personal travel expenses
- Actual Expenses (transportation, lodging, meals) for the appointee and family en route to the University. Transportation may not exceed coach class air fare by the most direct or least expensive route for the new staff member, spouse, and dependent children, or the current mileage rate. Such expenses may also include travel and expenses for trips necessary to secure living quarters and/or temporary living expenses at the new employment location. Reimbursement may not exceed the current rates of University travel guidelines.
- Qualified Moving Expenses
- The reasonable cost of moving household goods and personal effects from former to new residence. Includes such services as packing, loading, hauling, insuring, temporary storage, etc. See Appendices.
- Qualified Travel Expenses
- The reasonable cost of travel, including lodging but not meals, during the period when moving from former to new residence for the appointee and members of the appointee's household. See Appendices.
- Nonqualified Relocation Expenses
- Expenses, that, if reimbursed by the University, represent taxable income to the employee and will be reported on form W-2 subject to appropriate payroll tax withholding. See Appendices.
- Appointee
- Retain moving expense receipts. Certify moving expenses.
- Dean or equivalent
- Approve reimbursement of moving expenses.
- Department
- Request advance approval from Dean or equivalent. Inform newly-hired staff member about the moving expenses that will be paid and the limitations on such payments. Inform newly-hired staff member to retain original receipts. Inform newly-hired staff member that the IRS requires the University to report the reimbursement of nonqualified relocation expenses as taxable income subject to the appropriate tax withholding. Prepare a Moving Expense Form after the move. Ensure that expenses claimed for reimbursement are within the limits of the current policy.
- Disbursement Services
- Process Expense Report and forward it to payroll.
- Human Resources
- Provide orientation information to new employees.
- Purchasing Services
- Maintain policy and procedures. Negotiate moving contracts. Communicate policy information.
- Payroll Services
- Capture information for IRS reporting.
- Amended:
- July 2008 - Policy and procedure updated to reflect rollout of Enterprise Financial System.
- Amended:
- January 2006: Modified the Moving Expense Reimbursement Form (BA 1357) to be consistent with the IRS 2006 rulings.
- Amended:
- January 2005: Modified the Moving Expense Reimbursement Form (BA 1357) to change the Qualified Mileage Reimbursement & Excess Mileage Reimbursements rates to be consistent with IRS 2005 rulings.
- Amended:
- July 1997: Modified the Moving Expense Reimbursement Form (BA 1357) to clearly distinguish taxable and nontaxable moving expenses. Updated payroll address in BA 1357.
- Amended:
- November 1996 - Modified policy statement to state that payment of moving expenses is not limited to 1 month's salary.
- Supercedes:
- Was part of the Employee Business Related Expenses Policy
- Effective:
- December 1995
-
To obtain a copy of a historical policy,
e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.
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