Moving Expense Best Practices

Moving expenses are fully taxable to the employee at their standard rate.  Taxes will be deducted from employee in future pay periods.

UMBC Moving Expense Best Practices & Procedures

This guidance has been developed to help department personnel facilitate the payment of moving expenses which may be incurred by the campus when employees are being recruited. This guidance is developed in compliance with the University of Maryland (USM) Board of Regents Policy and Procedure VIII – 16.00 concerning “Moving Expenses”.

PRE-APPROVAL:

All agreements which include the payment of moving expenses are to be approved by the Provost or the respective Vice President or their designee prior to the agreement being offered. If the payment of moving expenses is approved, the employment offer letter must detail the agreement including the maximum amount of moving expenses that will be paid or reimbursed.

PAYMENT FOR MOVING EXPENSE:

Payment Request Guidance

All costs related to the relocation of the employee, their immediate family, and the movement of household goods and personal effects that were paid by the employee should be submitted for reimbursement on a completed UMBC Request for Reimbursement Form. The original invoices (with proof of payment), and/or receipts must be submitted with this form. If the move is contracted by the University, the department should follow normal Procurement Policy and submit a Purchase Requisition prior to the move. The correct account number for these expenses is 6018200. A separate Reimbursement of Moving Expenses Per Offer of Employment form should be submitted with the UMBC Request for Reimbursement Form. You are required to separate the costs into the following three categories:

1. Transportation and storage of household goods.
2. Travel and lodging during the actual move.
3. All other expenses, including all meals, all costs related to house hunting trips and the cost of temporary quarters.

UMBC is required to report all moving expense reimbursements to the IRS on a calendar year basis and Central Payroll Bureau on a quarterly basis.

The Internal Revenue Service Code says that reimbursed costs must be reasonable and in compliance with a pre-approved agreement between the University and the employee.  See examples of Expenses considered Unreasonable below.

A copy of the employee’s signed offer letter showing UMBC’s commitment to pay or reimburse moving expenses (including the maximum dollar amount allowed) must be forwarded with all reimbursement requests submitted to the Financial Services Accounts Payable section.

Undocumented expenses will not be reimbursed, with the following exceptions:

• In lieu of gasoline receipts, the employee may claim mileage (at current rate) from starting point to ending point of the actual move. The route driven must be the shortest, most direct route available by conventional transportation. Stopovers or side trips are not related to the move and may not be included in the mileage total. Tolls may be claimed (with receipts) in addition to this per mile rate.
• In lieu of meal receipts, the employee may claim current per diem (per person) for meals consumed during the actual move.
• If either of these options is elected, the employee must submit a signed statement detailing the items being claimed and showing the calculated dollar value of each. This signed statement must be attached to the UMBC Request for Reimbursement Form.

OTHER INFORMATION:

If the new employee is moving laboratory equipment to UMBC, it is the responsibility of the department to send a memorandum of this transfer to the Plant Funds Accountant in Financial Services. The expenses of moving this type of equipment should be contracted for on a Purchase Requisition. This cost should be charged to Other Contract Services account code 7089900.

EXCLUSIONS:

Nothing in this guidance or the USM Board of Regent’s Policies and Procedures requires the payment of moving expenses.

The payment of moving expenses is authorized under this guidance only when the distance between the new place of work and the former residence is greater than fifty (50) miles one way. Exceptions to this rule may be made at and for the convenience of UMBC and when pre-approved by the Provost or the respective Vice President or their designee.

Considered NOT REASONABLE:

These are a examples of items to AVOID considering as Moving Expenses when seeking reimbursement:

• Any part of the purchase price of your new home.
• Car Tag, Title, or Registration, Excise Tax or Taxes of any kind.
• Driver’s license, Moving Violations, Parking Violations
• Expenses of buying or selling a home (including closing costs, mortgage fees, and points).
• Expenses of entering into or breaking a lease.
• Home improvements to help sell your home.
• Loss on the sale of your home.
• Losses from disposing of memberships in clubs.
• Mortgage penalties.
• Real estate taxes.
• Refitting of carpet and draperies.
• Return trips to your former residence.  (1st trip to find housing is acceptable)
• Security deposits (including any given up due to the move).
• Household Items purchased during the move. (e.g. Buying a new Toaster during the move is not an acceptable moving expense.)
• Storage charges except those incurred in transit and for foreign moves.

 

Revised: January 2022