In an effort to further induce a candidate to accept a position, UMW may offer a candidate a Moving and Relocation package. Moving & Relocation packages serve as a recruitment incentive to induce an external candidate. The candidate must be NEW to the University of Mary Washington. (NOTE: There are IRS mileage limitations that restrict whether or not UMW can offer a Moving & Relocation package. See “Requirements for Relocation Packages” below.)
Moving and Relocation Packages:
- Are administered by Accounts Payable and reimbursed by Payroll but also involve:
Departments and the dean’s office for those positions being filled that ultimately report to an Academic Dean (see Flow Chart for this scenario),
A hiring manager and Human Resources for positions being filled that do NOT ultimately report to an Academic Dean (see Flow Chart for this scenario).
EXCEPTION: The James Farmer Post-Doctoral Fellow position. (The James Farmer Scholars Program handles the negotiations for filling this position, and a dean’s office, the provost office, OR Human Resources will be involved in the process, depending upon the candidate that is hired for this position.)
- Require a separate Moving and Relocation Agreement Form (that must be signed, dated, and returned to UMW PRIOR to incurring house hunting expenses, contracting with common carrier, or renting a moving vehicle) and a Moving and Relocation Expense Summary Form (that is completed AFTER the move has taken place).
- Are bound by the Commonwealth and IRS regulations for Moving and Relocation. (The strict regulations are defined below.)
- Are payments that are made as a reimbursement to an employee OR a payment made directly to a moving company. (NOTE: Some items in Moving and Relocation are taxable as defined by the IRS.)
NOTE: Accounts Payable and Payroll are the departments that are primarily responsible for ensuring compliance with Commonwealth of Virginia and IRS Moving and Relocation regulations. ALL departments are responsible for ensuring candidates are offered Moving and Relocation ONLY as a further inducement for the candidate to accept employment at UMW and ONLY if the candidate meets the IRS mileage requirement.
Benefits of Moving and Relocation Packages
If a Common Carrier (full service moving company) is used—and if the Common Carrier accepts a credit card—the Common Carrier expense can be charged to the Accounts Payable MANAGER’S SPCC (credit card) which means that the new employee does not have to wait for reimbursement. (If you have questions about this process, contact the Accounts Payable Manager at 540-654-1226 for details. Be able and ready to provide the completed Moving and Relocation Agreement.) NOTE: If the move is a self-move where the new employee rents a moving vehicle, the new employee will pay upfront and will request reimbursement that will be reimbursed to the employee through Payroll after employment begins.
Restrictions Associated with Moving and Relocation Packages
All Commonwealth of Virginia Moving and Relocation regulations must be followed, including but not limited to, the following:
- New employee MUST submit receipts for all expenses (except food) for reimbursement of items requested.
- New employee must take the most direct route during the move.
- Items can be moved from ONE location only. (For example, if employee has items in storage in PA but is moving from TX, we can move items from only ONE location.)
- If Common Carrier (full service moving company) is used, the Commonwealth of Virginia has contracts that may be utilized through April 30, 2018 under Contract Number E194-72840 (be sure to reference the contract number):
- Dunmar Moving Systems (S) – (Contact Britt LaLiberte at 804-714-2528)
- J. Barber Moving & Storage (Contact Jeffrey Barber at 540-710-1803)
- Kloke Transfer (S) – (Contact Donna Erickson at 866-666-7679)
- Reads Moving Systems (S) – (Contact Jim Hannon at 804-641-5951)
If you use one of these companies, no quotes are needed. If you choose to use a company that is NOT on this list, you will need to obtain a quote from one of the vendors listed with an “(S)” beside the vendor name. Please contact the Procurement Services Department (540-654-1057) with questions regarding these contracts.
If the company accepts VISA, the Accounts Payable Manager’s SPCC (contact the Accounts Payable Manager at 654-1226) may be used, but the following forms are required and MUST be attached to the invoice with the SPCC paperwork:
- A completed Employee Moving and Relocation Expense Summary Form and
- A completed Moving and Relocation Agreement Form.
If the company does not accept VISA and will not accept a Purchase Order, contact the Accounts Payable MANAGER (ext. 1226) for direction. The Accounts Payable Manager will have to get direction from the Associate Vice President for Finance and Controller.
- If a self-move, the new employee is limited to ALL of the state’s self-moving regulations, including, but not limited to:
-Labor limit of $250
-Moving supplies limit of $200
-Inability to pay for lodging or return trip expenses for others who help with move
-Inability to pay expenses for family or friends who may help with packing
REQUIREMENTS FOR MOVING AND RELOCATION PACKAGES
The State and IRS have strict regulations regarding Moving and Relocation. Read this site CAREFULLY and BEFORE entering into ANY verbal or written agreement with a potential employee, contact the Accounts Payable MANAGER (654-1226) with questions.
THINGS TO CONSIDER
- Does the new employee meet the IRS mileage requirement?
Complete this document Moving and Relocation IRS Mileage to determine eligibility. If the candidate does not meet this IRS requirement, then you CANNOT offer a Moving and Relocation package.
IRS MILEAGE REQUIREMENT
The distance between the employee’s new work location and the former residence must be at least fifty (50) miles greater than the distance between the employee’s old work location and the former residence. That is, the employee’s commuting distance must have increased by at least fifty (50) miles one way. For example, if the original commuting distance from the former residence to the old work site was 10 miles, the new work site must be at least 60 miles (10 miles original commuting distance plus the 50-mile increase) from the former residence. If your candidate does NOT meet this mileage regulation, the University of Mary Washington CANNOT, under State & IRS regulations, pay for moving and relocation for this new employee. By offering a Moving and Relocation package to an employee, the hiring manager/department chair/dean certifies that the IRS mileage requirement has been met.
- If you have offered a Moving and Relocation package, do you have a Moving and Relocation Agreement?
The state requires a Moving and Relocation Agreement to be signed IN ADVANCE (before ANY house hunting expenses or Moving expenses are incurred), as a Moving and Relocation package is offered as a further inducement to accept the position. The Moving and Relocation Agreement must be completed as follows:
For those employees who are offered Moving and Relocation who ultimately report to an ACADEMIC Dean (defined as the Dean of the College of Education, the Dean of the College of Business, or the Dean of the College of Arts and Sciences), the Dean’s office will complete and send the Moving and Relocation Agreement to the candidate. The new employee should return the Moving and Relocation Agreement to the Dean’s office, as instructed on the form. (The dean signs/dates the Moving and Relocation Agreement after the new hire signs/dates.)
For those employees who are offered Moving and Relocation who do NOT ultimately report to an ACADEMIC Dean (defined as the Dean of the College of Education, the Dean of the College of Business, or the Dean of the College of Arts and Sciences), the HIRING MANAGER’s office will complete the form (as indicated on the form) BEFORE sending it to Human Resources. Human Resources will mail the Moving and Relocation Agreement to the new hire for the new hire’s signature and date. The new employee should return the Moving and Relocation Agreement to Human Resources, as instructed on the form. (The Cabinet Member signs/dates the Moving and Relocation Agreement after the new hire signs/dates.)
- Is there funding to offer your candidate Moving and Relocation?
The department that is hiring the new employee determines the source of funding for Moving and Relocation. (If unsure about funding, ask a Vice President or Dean in your division.) Accounts Payable pays from the funding source that is shown on the Moving and Relocation Agreement. Although UMW follows the Commonwealth’s Moving and Relocation regulations in the CAPP manual topic 20345, UMW typically limits the relocation amount to an amount which is less than the maximum allowed by the state. The relocation amount cannot–under any circumstances–exceed the maximum dollar amount allowed by the state in CAPP section 20345. In addition to CAPP section 20345, under Moving and Relocation packages, state travel regulations apply during the actual move. Travel regulations can be found by clicking this link. The new employee is expected to travel using the most direct route.
ADDITIONAL IMPORTANT DETAILS
Any payment–including reimbursements–relating to Moving and Relocations MUST:
- Be in compliance with section 20345 of the CAPP manual and in compliance with the State Travel Regulations.
- Have a completed Moving and Relocation Agreement. This form must be signed and dated by the employee BEFORE THE EMPLOYEE STARTS WORK AND BEFORE THE EMPLOYEE INCURS ANY MOVING AND RELOCATION EXPENDITURES, including house-hunting expenditures. Contact the Accounts Payable MANAGER at 654-1226 BEFORE changing any information on the form; UMW MUST remain in compliance with the state’s regulations. If any information on the form is altered, both parties (UMW and the new employee) must initial.
- Have a completed Moving and Relocation Expense Summary Form. This form is completed AFTER the move has taken place.
- THE RELOCATION MUST TAKE PLACE WITHIN 12 MONTHS OF THE EMPLOYMENT DATE SHOWN ON THE MOVING AND RELOCATION AGREEMENT.
- INVOICES FROM MOVING COMPANIES MUST SHOW THE PICK UP ADDRESS AND THE DELIVERY ADDRESS OF GOODS.
If the new employee is being reimbursed for moving and relocation expenses, the new employee must submit the following to the Accounts Payable (AP) department at Eagle Village Suite 480:
- A completed Travel Expense Reimbursement Form;
- Original, itemized, detailed receipts (except NO food receipts);
- A completed Moving and Relocation Agreement Form; and
- A completed Employee Moving and Relocation Expense Summary Form
(Accounts Payable will gladly complete this form for the new employee.)
AP will review the paperwork to ensure reimbursement meets the State Travel and Moving and Relocation regulations and is within the guidelines written in the UMW Moving and Relocation Agreement contract.
AP will then submit all the paperwork to Payroll. The employee will be reimbursed through PAYROLL–NOT Accounts Payable.
Any reimbursed items that are considered taxable under IRS regulations will be taxed; any reimbursed items that are considered NON taxable under IRS regulations will NOT be taxed. NOTE: The Employee Moving and Relocation Expense Summary Form determines which items are taxable/non-taxable.
If UMW is making a payment directly to a vendor (the moving company, for example) the invoice should be submitted to Accounts Payable at Eagle Village Suite 480. The invoice should show the Purchase Order number and pick-up and delivery addresses of household goods. The State requires the following documents to be attached to any invoice related to moving and relocation:
- A completed Employee Moving and Relocation Expense Summary Form and
- A completed Moving and Relocation Agreement Form.
All expenses (other than Common Carrier, defined as a full service moving company, or a PODS-oriented vendor) must be paid out-of-pocket by the new employee. The new employee will be reimbursed through Payroll and will NOT be reimbursed until AFTER employment begins.
Accounts Payable will GLADLY help any new hire through the Moving and Relocation process AS LONG AS Accounts Payable has been provided a copy of the completed Moving and Relocation Agreement Form for that individual.
CONTACT THE ACCOUNTS PAYABLE MANAGER (540-654-1226) WITH ANY QUESTIONS.