Move reimbursements will follow the “additional pay” payroll schedule deadlines. Please visit the following link found on the Finance-Payroll Services website, for a detailed payroll schedule: http://intranet.utmb.edu/finance/payrollservices/resources/payday08.pdf

For example: Payroll Services receives a request for moving reimbursement on 11/30/2007. For a biweekly paid employee, the receipt date was after the deadline of 11/29/2007 in order for it to be processed on the current payroll run; therefore, employee can not expect to see the reimbursement until the subsequent payroll cycle with an additional pay deadline of 12/13/2007 and payroll check date of 12/21/2007. For a monthly paid employee, the request was received after the November payroll deadline of 11/21/2007; therefore, the employee can expect to see the reimbursement on the subsequent December payroll cycle with an additional pay deadline of 12/17/2007 and payroll check date of 01/02/2008.

Qualifications:
To qualify as a moving/relocation expense, the move must meet the Internal Revenue Service (IRS) distance test (or “mileage limit test”) and the time test.

• The distance test – the distance between the employee’s new principal place of work and former residence must be at least 50 miles greater than the distance between the old principal place of work and the old residence. The shortest, most direct, and most commonly used route must be used in determining the mileage.
• The time test – the employee must be employed full time in the general location of the new principal place of work for at least 39 weeks of the 12-month period immediately following the arrival at the new location.

If the employer has reason to believe that the employee will meet both of these tests, then a department may pay for all or part of reasonable, necessary, and resulting costs incurred from moving and relocating a new employee at the discretion of Hospital Administration, Department Chairman, or Support Services.

Taxable vs Nontaxable (Employee):
1. Nondeductible (or “Taxable”) expenses generally subject to federal income tax (FIT), Social Security and Medicare (FICA) and reported in boxes 1 thru 6 of the Internal Revenue Service (IRS) Form W-2, Wage and Tax Statement are as follows:

• all meal expenses,
• temporary transportation,
• mileage in excess .20 cents a mile up to the standard rate of 48.5 cents a mile (amounts exceeding the standard rate is not reimbursable),
• the cost of pre-move house-hunting expenses,
• the cost of temporary living expenses for up to 30 days in the general location of the new job, and
• the cost related to the sale of (or settlement of an unexpired lease on) the old residence and the purchase of (or acquisition of a lease on) the new residence in the general location of the new job (except for third-party home sales).

2. Deductible (or “Nontaxable”) moving expenses generally not subject to tax withholding and not subject to reporting on Form W-2 are as follows:

• mileage up to .20 cents a mile,
• moving household goods and personal effects from the former residence to the new residence, and the first 30 days of storage for a domestic move, or
• travel expenses, including lodging during the period of travel from the former residence to the new place of residence.
• No portion of relocation-related meal expenses is deductible.

Nontaxable (Third-party vendors):
An employer-reimbursed moving expense made directly to a third-party is neither taxable nor reportable to the employee. If the move of household goods and effects is to be done by a commercial moving company, payment may be made directly to the moving company. In this case the UTMB department must contact Logistics - Acquisition for approval of the moving company. Payroll Services will not process third-party move reimbursements.

Substantiation:
All reimbursements and payments made to employees or third parties on behalf of employees must be adequately substantiated. Departments will continue to prepare the same Non-P.O. packaging as customarily prepared for Accounts Payable with sufficient information to verify the amount of the expense, time period the expense was incurred, the place, and any other related information.

Requirements:

• Name of the UTMB department
• Title of the UTMB position
• Name of the new hire
• Employee id
• Hire date
• Date the employee accepted the offer
• Original, itemized paid receipt if new employee paid moving company and is being reimbursed
• Itemized travel expenses
• Original, remaining airfare ticket coupon or e-ticket for travel by air carrier
• Original, paid receipts for ground transportation
• Original, itemized, paid receipts for all other allowed moving/relocation expenses