MOVING & RELOCATION SUMMARY PREPARATION INSTRUCTIONS

NEW THIS YEAR:The Employee’s M&R Allowance is reduced by the Employer Portion of FICA for the total taxable M&R expense amount to show the maximum reimbursement the employee may receive.

  • The employee’s M&R Allowance is reportable as income to the employee, some of which is taxable.
  • The Preparer of the M&R Expense Summary should include all M&R expenses up to the maximum Allowance the employee was provided.
  • The M&R Expense Summary includes a Payroll formula to calculate the employer portion of FICA and subtract the tax from the employee’s M&R Allowance.
  • The M&R Expense Summary will automatically reduce the taxable portion of the M&R expenses to show the maximum reimbursement the employee may receive.
  • The employee will not receive the full Allowanceas it will be reduced by the employer portion of FICA.

Moving and Relocation (M&R) Reimbursements can be submitted on a Travel Reimbursement Expense Voucher (TERV) which includes allowable House-Hunting (HH) and Moving expenses. Direct pays to professional moving companies should be submitted on a Vendor Payment Request (VPR)

Preparing the Moving and Relocation (M&R) Summary:

Each TERV or VPR submitted should be put into a separate column on the M&R Summary in order of the date it was submitted.

EXAMPLE: See the attached M&R Summary last page. The three (3) M&R Reimbursements below are shown on the properly completed M&R Summary.

REIMBURSEMENT TERV #1is submitted on 1/10/14 for HH expenses. All HH expenses are taxable, so all expenses on the TERV are placed in the first column of the M&R Summary, under Taxable Expenses. The first column total on the M&R Summary matches the total on the TERV.

VPR DIRECT PAY #1is submitted on 1/24/14 to pay the moving company. The VPR expense is placed in the second column under Non-Taxable Expenses. The second column total on the M&R Summary matches the total on the VPR.

REIMBURSEMENT TERV #2is submitted on 1/25/14 for final moving expenses. All expenses on the TERV are placed in the third column. The third column total on the M&R Summary matches the total on the TERV.

M&R Process

Every M&R Reimbursement voucher, whether it is a TERV or a VPR, MUST include a copy of the Tenure Agreement and an original current M&R Summary signed by the Provost. The Tenure Agreement should be dated prior to any M&R expenses being incurred by the new employee. If it is not, a copy of the Letter of Intent (Offer Letter) signed by the employee and the department should accompany the Reimbursement. The date on the Letter of Intent should be prior to any expenses being incurred by the new employee.

M&R reimbursements should be marked as such and expenses should be coded to 712810.

Reimbursements must include original, itemized receipts for each expense.

  • After preparing the initial M&R Summary, the file should be saved for future use in the event that there will be more M&R expenses for the same employee.
  • The Department should prepare and approve the M&R package, make a copy of the package for the Department and send the completed original package to the Provost's Office for approval.

For VIMS – the package must be submitted to the VIMS Dean and Director’s Office to be initialed prior to sending to the Provost’s office for approval.

  • The Provost's Office will review and approve the package by signing the Moving & Relocation Summary and will forward the approved package to the AP Travel Office.
  • AP Travel Office will review the M&R package for compliance and to ensure total reimbursements/payments do not exceed the agreed-upon amount noted on the Tenure Agreement and forward to the Director of General Accounting for approval.
  • Once approved by the Director, the reimbursement will be processed for payment. Note: All M&R expenses are reportable on the individual's W-2. M&R expenses that meet IRS Code, Section 217 requirements are deductible.

TERV #1 submitted on 1/10/14

VPR #1 submitted on 1/24/14

TERV #2 submitted on 1/25/14