Relocation Expenses, 2.30 - Ohio State University



231775612140Overview of Proposed Revised Policy: Relocation ExpensesThe Office of Human Resources is recommending the revision of the Relocation Expenses policy. This proposed policy revision is related to the Enterprise Project. The proposed revised policy: Revises the opening policy statement. (p. 1)Relocates sections from Policy Details regarding the type of payments an employee can receive (cash, reimbursement, and direct pay) to the Procedure Section to ensure consistency with the University Policy Template. The cash advance option was deleted.Adds a definition table, with definitions for “Full-Time Equivalency” and “Unit.” (Definitions, p.1)Adds language to clarify that relocation expenses will not be paid to an employee prior to their hire or transfer date. (Policy Details III.B, p. 1)Clarifies and updates language in Eligible and Ineligible Relocation Expenses sections to reflect current practice. (Policy Details III.C and IV.A, pp. 1-2) Adds a section regarding the taxability of payments and reimbursements for relocation expenses. (Policy Details V, p. 2).Adds an Employee Repayment of Relocation Assistance section. (Policy Details VI, pp. 2-3)Adds a Negotiation section. (Procedure I.A., p. 3)Adds a Vendor Information and Direct Billing section. (Procedure II, p.3) Adds an Obtaining Reimbursement section. (Procedure III, p.3)00Overview of Proposed Revised Policy: Relocation ExpensesThe Office of Human Resources is recommending the revision of the Relocation Expenses policy. This proposed policy revision is related to the Enterprise Project. The proposed revised policy: Revises the opening policy statement. (p. 1)Relocates sections from Policy Details regarding the type of payments an employee can receive (cash, reimbursement, and direct pay) to the Procedure Section to ensure consistency with the University Policy Template. The cash advance option was deleted.Adds a definition table, with definitions for “Full-Time Equivalency” and “Unit.” (Definitions, p.1)Adds language to clarify that relocation expenses will not be paid to an employee prior to their hire or transfer date. (Policy Details III.B, p. 1)Clarifies and updates language in Eligible and Ineligible Relocation Expenses sections to reflect current practice. (Policy Details III.C and IV.A, pp. 1-2) Adds a section regarding the taxability of payments and reimbursements for relocation expenses. (Policy Details V, p. 2).Adds an Employee Repayment of Relocation Assistance section. (Policy Details VI, pp. 2-3)Adds a Negotiation section. (Procedure I.A., p. 3)Adds a Vendor Information and Direct Billing section. (Procedure II, p.3) Adds an Obtaining Reimbursement section. (Procedure III, p.3)0-11430000Relocation Expenses, 2.30 University PolicyApplies to:Faculty and staff Responsible Office Office of Human Resources POLICY Issued:10/01/1973 Revised:06/22/2020 (target effective date)A unit may provide relocation assistance to eligible faculty and staff.Purpose of the Policy To provide processes and procedures for the payment or reimbursement of eligible relocation expenses to eligible faculty and staff.DefinitionsTermDefinitionFull-time equivalency (FTE)The percentage of full time (40 hours per work week) hours worked during the period covered by a given position (for example, 10% full-time equivalency [FTE] equals four hours of work per work week).UnitCollege or administrative unit.Policy Details GeneralA unit may provide relocation assistance to eligible employees for eligible relocation expenses as described below. The provision of relocation assistance to an eligible employee is at the discretion of the employing unit.Relocation assistance should be offered to an eligible employee only when such assistance is a significant factor in being able to attract a potential employee to the university or an existing employee to another campus.Any offer to provide relocation assistance, including the maximum amount to be paid or reimbursed, must be included in the eligible employee’s offer letter.Eligible EmployeesThe following university employees are eligible to receive relocation assistance:Newly hired faculty and staff who hold a regular position or appointment of at least 75% FTE and are relocating at least 50 miles from their previous residence.Current faculty and staff who hold a regular position or appointment of at least 75% FTE, transfer from one university campus to another (e.g., Columbus to Wooster), and are relocating at least 50 miles from their previous residence.Eligible Relocation ExpensesA unit may only provide relocation assistance to an eligible employee for eligible relocation expenses as described within this section.No relocation expense reimbursements will be made to employees prior to their hire or transfer date. Eligible relocation expenses include:Commercial moving company costsCharges for packing, crating, mailing, and/or shipping household goods, and other miscellaneous packing suppliesOptional insurance on items such as furniture, clothing, and utensilsRental truck costsCost of in-transit storage for up to 90 consecutive daysShipment cost for car(s), if not used in the moveCost of meals at any point in the relocation process, in accordance with current federal per diem rates for meals and incidental expensesTravel and lodging costs for one trip (employee and family) from the old primary residence to the new residence, which may include:Actual gas cost, based upon receipts or current Internal Revenue Service (IRS) rates for personal or rental vehicles as indicated on the Relocation RequestLodging in transit, based upon the current federal per diem rates for the cities involvedAirfare (coach only)Rental car (economy only unless unit approval of a larger vehicle is documented in advance of the rental)Transportation fees (such as tolls, Uber/Lyft, taxi, parking, etc.)Household pet shipping chargesHouse hunting expenses (one trip only, not to exceed five days) which may include:Actual gas cost, based upon receipts or current IRS rates for personal or rental vehicles as indicated on the Relocation RequestLodging, based upon current federal per diem rates for the city involvedAirfare (coach only)Rental car (economy only unless unit approval of a larger vehicle is documented in advance of the rental)Transportation fees (such as tolls, Uber/Lyft, taxi, parking, etc.)Temporary housing costs until the earlier of six months following the date of hire/transfer or the employee’s occupancy of a permanent residence Ineligible Relocation ExpensesExpenses not paid or reimbursed by the university include:Business trip expensesStorage costs (excluding in-transit storage for up to 90 consecutive days)Meals and travel costs incurred by laborersExpenses incurred by persons not considered to be the employee’s dependents for tax purposesCosts related to immigration, such as passports, visas, etc.Utility and telephone installation chargesLoss of security depositsReal estate expensesPostage costs for realty and mortgage documentsPersonal telephone calls, tips, movies, or other entertainment costsCosts related to extraordinary items requiring special handling (e.g., boats)Bank fees for cashier’s checksExpenses for relocating offices and laboratory equipmentAny other expenses not explicitly permitted by this policyThe payment and/or reimbursement of all relocation expenses will be treated as taxable wages in accordance with applicable law, and subject to applicable tax withholdings.Employee Repayment of Relocation AssistanceA.If an employee voluntarily leaves university employment for any reason or is involuntarily terminated pursuant to the Corrective Action and Involuntary Termination 8.15 policy or the Faculty Rule 3335-5-04 process within two years of the employee’s date of hire or transfer, the employee will be required to reimburse the university for relocation assistance received. The amount of the reimbursement will be determined in accordance with the following schedule:If termination occurs prior to, or on, the first anniversary of the employee’s date of hire or transfer, the employee must reimburse the university 100% of the relocation assistance provided.If termination occurs after the first anniversary of the employee’s date of hire or transfer, but prior to the second anniversary of the employee’s date of hire or transfer, the employee must reimburse the university 50% of the relocation assistance provided.Any reimbursement due under this Section VI must be remitted to the university within 30 days following the university's written notification to the former employee of the amount due.PROCEDURE Issued:10/01/1973 Revised:06/22/2020 (target effective date)Relocation ExpensesNegotiation Relocation expenses and payment options must be, in consultation with Talent Acquisition, negotiated with the faculty or staff member during the hiring or transfer process.Offer letters to candidates who will receive relocation assistance must:Set forth the maximum relocation assistance that will be paid or reimbursed; Inform the employee that applicable taxes will be withheld for paid or reimbursed relocation expenses under this policy; andInclude a link to this policy. Vendor Information and Direct BillingVendor InformationTalent Acquisition will maintain and provide information regarding how an employee receiving relocation assistance should contact vendors (such as movers, realtors, etc.).Direct Billing When direct billing is utilized, the employing unit must:Submit a copy of the request for direct billing with a copy of the offer letter to Payroll Services;Issue a purchase order for direct payment of commercial carriers for moving expenses; andEmail Payroll Services at taxoffice@osu.edu with the following employee information for audit purposes:Employee name;Employee ID number; andEmployee hire date.Obtaining ReimbursementIn order to obtain reimbursement, an employee must:Complete the Relocation Request form and submit it to the employing unit; Submit itemized receipts to the employing unit. Receipts are not required for mileage or meal reimbursement. Online driving directions may be supplied to support mileage claimed;Complete the Relocation Check Request form and submit it to Payroll Services; and Retain copies of all documents for audit purposes.When a faculty or staff member submits the documentation required in Procedure III.A, Payroll Services will:Issue reimbursement payment in accordance with the receipts the employee has submitted and applicable federal per diem rates, with the next regular pay cycle;Withhold applicable income and employment taxes at the current supplemental rate;Report payments and reimbursements on the annual Form W-2; andRetain documentation for audit purposes.Talent Acquisition will maintain and provide information regarding the necessary documentation an employee must submit to receive reimbursement. Responsibilities Position or OfficeResponsibilitiesThis table will be completed after university feedback has been received and integrated.Resources FormsRelocation Check Request form, busfin.osu.edu/sites/default/files/reloccheckreq.pdfRelocation Request form, busfin.osu.edu/sites/default/files/relocreq.pdfGovernance Documents Internal Revenue Service (IRS), U. S. General Services Administration (GSA), travel/plan-book/per-diem-ratesTravel policy, busfin.osu.edu/sites/default/files/211_travel.pdfContacts SubjectOfficeTelephoneE-mail/URLPolicy clarificationPayroll Services614-292-2311taxoffice@osu.eduTravel policies and practicesTravel Office614-292-9290osutravel.osu.eduHistory Issued: 10/01/1973Revised: 09/01/1986Revised: 05/29/1996Renamed to Relocation ExpensesEdited: 10/31/1997Revised:01/22/2001Edited:01/02/2002Edited:01/06/2003Edited:04/14/2004Edited:03/08/2006Edited:01/01/2009Revised:05/01/2013Interim Revised: 02/15/2018 Revised:06/22/2020 (target effective date) ................
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