MOVING, RELOCATION AND TEMPORARY
HOUSING POLICY 

MRH-93-041
2
October 5, 1998
1         4   

The reimbursement or payment of MOVING EXPENSES, RELOCATION EXPENSES and/or TEMPORARY HOUSING EXPENSES for faculty and staff members from department current expenditure funds may be authorized to the extent that such funds are available, when the administrative head of the employing department deems this expenditure is necessary and it is approved in advance by the appropriate Vice Chancellor. This policy is intended to aid in recruiting and relocating exceptional candidates for critical University positions. Additional approval by the Principal Investigator is required when appointee’s expenses are to be paid from a Grant or Contract. All such reimbursements/payments shall be made in accordance with procedures outlined in the Procurement Manual.

Moving expenses are the costs of packing, shipping and storage of household goods (personal effects

and property) and the reasonable expense for moving an automobile.

Relocation expenses are the costs of travel for the faculty or staff member and family enroute to the position assigned, including transportation, food and lodging; travel necessary to secure living quarters.

Temporary housing expenses may be incurred when the appointment date precedes the date when permanent living quarters are available.

After a new staff member has accepted employment, travel expenses may be reimbursed for one trip for the purpose of arranging housing.

Reimbursement for moving expenses shall not include moving animals, nonhousehold goods or the cost of connecting or disconnecting appliances or utilities.

Reimbursement may be permitted for the moving of instructional and research materials in addition to the personal household goods outlined above when approved as part of the employee agreement.

Reimbursement for the use of rental trucks or trailers may be authorized if complete documentation is presented that includes receipts for gasoline purchases and truck rental. Reimbursement will be made for the hiring of assistance to help with loading or unloading of household goods when this is the least expensive method.

Personal travel or living expenses in connection with accepting new employment for an individual and his or her immediate family may be reimbursed. Such reimbursement is limited, however, to mileage for one vehicle and for travel in which the most direct route is used.

The MHEC Interstate Moving Contract must be used for contracting with movers, regardless of whether the employee is to be reimbursed or payment made directly to the company. A University purchase order must indicate the dollar limit of reimbursement. Any costs incurred in excess of the amount indicated is the responsibility of the employee.

The University is required to report payments to or on behalf of an employee for moving household goods or related expenses to the Internal Revenue Service and Massachusetts Department of Revenue. Generally, the cost of transporting the employee, his/her family, household goods and personal effects is excluded from federal wages if the employee's new work site is at least 50 miles farther from his former residence than his old work-site was from his old residence. Other reimbursements such as temporary living quarters, house hunting, cost of selling or buying a new residence, breaking a lease, meals consumed while traveling or reimbursement for automobile mileage over 10 cents per mile are reported as federal wages on the employee’s W-2. For Massachusetts tax purposes, all moving expense reimbursements are included on the W-2. The faculty or staff member receiving the reimbursement should be advised to contact their tax consultant to determine which portion, if any, of the moving expense reimbursements are taxable.

All moving expenses to be paid by the University directly to a moving company should be requested on the standard purchase order form and charged to object code 6159.

Reimbursements to the new employee should be charged to object code 2691 and submit the following documentation to the Accounts Payable section:

1. A University invoice with the itemized expenses and departmental approval and the attached original receipts.
2. The completed Moving Expense Tax Form with signatures from the new employee and the Department Head.

The Moving Expense Form is to be completed with the total of all expenses paid on behalf of the employee and/or reimbursed to the employee for a move. If there is more than one payment, then a statement is required with each payment stating that this is not the final payment and the Moving Expense Form will accompany the final payment. A Moving Expense Form will need to be completed for any partially paid moves on December 31 and a second form would be needed for any payments in the following year.

The Accounts Payable section will audit the invoice with attached receipts and the Moving Expense Form for appropriateness and authorization. Upon approval, the invoice will be processed and a copy of the Moving Expense Form will be attached to the invoice. The original Moving Expense Form will be forwarded to the Payroll Department to be reported on the new employee’s payroll records and W-2.

Please see the attached example and the Moving Expense Form.

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