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Moving and Relocation

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, new to the University of Mary Washington, to accept employment at the University of Mary Washington.  (NOTE:  There are 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 but also involve Human Resources OR a Dean’s office, depending upon the job classification, and Payroll.  (Accounts Payable and Payroll are the departments that are primarily responsible for ensuring compliance with Commonwealth of Virginia and IRS Moving and Relocation regulations.)
  • Require a separate Moving and Relocation Agreement Form.
  • 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.)

Benefits of Moving and Relocation packages

  • If a Common Carrier is used—and if the Common Carrier accepts a credit card—the Common Carrier expense can be charged to the Accounts Payable SPCC (credit card) which means that the new employee does not have to wait for reimbursement.  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.

Cons of Moving and Relocation packages

  • If Common Carrier is used, three quotes (including one from a Virginia-based company) MUST be submitted and all state regulations for Moving and Relocation must be followed.
  • 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
  • New employee MUST submit receipts for all expenses (except food)
  • 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.)

 

REQUIREMENTS for Moving and Relocation packages

The State and IRS have strict regulations regarding Moving and Relocation.  BEFORE entering into ANY verbal or written agreement with a potential employee, contact the Accounts Payable MANAGER (654-1226).

Things to consider

  •  Does the new employee meet the IRS mileage requirement?
    If not, 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. 

  • 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.

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.

Any payment–including reimbursements–relating to Moving and Relocations MUST:

  1. Be in compliance with section 20345 of the CAPP manual and in compliance with the State Travel Regulations that can be found at http://adminfinance.umw.edu/ap/travel/.
  2. Have a completed Moving and Relocation Agreement. This form must be signed and dated by the employee and the President (or designee) BEFORE THE EMPLOYEE STARTS WORK AND BEFORE THE EMPLOYEE INCURS ANY MOVING AND RELOCATION EXPENDITURES, including house-hunting expenditures. (This is a sample document that you may use. If you alter the information on this form, 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.)
  3. Have a completed Employee Moving and Relocation Expense Information Form. This form is completed AFTER the move has taken place.)

In advance, the new employee should obtain three price estimates from moving companies (at least one quote should be from a Virginia-based company).  The Purchasing Department (540-654-1057) can assist with questions regarding Purchase Orders to moving companies.  If the company accepts VISA, the Accounts Payable SPCC may be used, but the following forms are required and MUST be attached to the invoice with the SPCC log:

  1. A completed Employee Moving and Relocation Expense Information Form and
  2. 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.

  • 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:

  1. A completed Travel Expense Reimbursement Form
  2. Original, itemized, detailed receipts
  3. A completed Employee Moving and Relocation Expense Information Form and
  4. A completed Moving and Relocation Agreement Form.

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 Information 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 Information Form and
  • A completed Moving and Relocation Agreement Form

All expenses (other than Common Carrier) 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.

CONTACT THE ACCOUNTS PAYABLE MANAGER (540-654-1226) WITH ANY QUESTIONS.