RELOCATION POLICY BY LINDA MUNDY

MOVING ALLOWANCE/EXPENSE REIMBURSEMENT UNIVERSITY POLICY IV Implemented April 9, 2007 Reason for Policy: –Offer competitive employment packages –Provides increased flexibility –Enhances the timing of the payment

RELOCATION-PROCEDURES Approval Procedures –Vice President, Dean or Director may approve up to $15,000 –Approved moving allowance/expense reimbursement should be documented in the candidates offer letter or subsequent documentation –Exceptions require the approval of the executive officers reporting to the president

MOVING ALLOWANCE- PAYMENT PROCEDURES Utilize the invoice voucher template/moving direct debit invoice voucher & instructions Include a copy of the approved documentation for the moving allowance with the invoice voucher Forward to Accounts Payable for processing

MOVING ALLOWANCE-TAX IMPLICATIONS Moving allowances are considered taxable Reported on W-2 Employee may recover income tax withheld by filing appropriate IRS forms with the tax return Taxes withheld at the time of payment –Federal Income – 25% –State Income – 3.4% –Social Security – 7.65%

MOVING EXPENSE REIMBURSMENT – PAYMENT PROCEDURES Purpose – To reimburse moving expenses that meet IRS guidelines for tax deductibility Prepare a direct invoice voucher or a direct debit invoice voucher Attach receipts with proof of payment and a copy of the approved documentation Forward to Accounts Payable for processing

MOVING EXPENSE REIMBURSEMENT – TAX IMPLICATIONS Moving expense reimbursements are generally not taxable Refer to the summary of deductible & non- deductible moving expenses If a reimbursement is made for a taxable item, it will be added to the employee’s W-2

RELOCATION PROCEDURE- CONTACTS Tax Manager – Linda Mundy (765) Tax Accountant – Pam Hartman (765) Department Business Managers