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Policy & Procedures for Moves & Transfers
I. Purpose :
The University of California recognizes that in order to attract the highest quality faculty and staff, it is sometimes appropriate to pay the moving expenses of new employees relocating to Los Angeles. To accommodate these arrangements the University of California has developed policies and procedures related to the payment of relocation expenses.
II. Eligibility
Staff Employees’ Eligibility for Reimbursement of Moves and Transfer
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Eligible for 50% Reimbursement of Moves and Transfers |
Senior managers |
Managers, Senior Professionals,
Professionals |
Support staff |
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An employee is transferred to a different university location where his/her skills are needed but which is outside reasonable commuting distance. |
X |
X |
X |
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An employee accepts a position at higher salary grade at a new university location that is located outside reasonable commuting distance of the old location. |
X |
X |
X |
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An employee is transferred to a new principal place of work that is located outside a reasonable commuting distance because UCLA has relocated offices, teaching facilities, or laboratories. |
X |
X |
X |
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An employee accepts a position of the same or lower grade at a campus that is located outside a reasonable commuting distance. |
X |
X |
X |
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An employee accepts an employee-initiated promotion at a campus that is located outside reasonable commuting distance. |
X |
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X |
- Academic Employees’ Eligibility for Reimbursement of Moves and Transfers
Faculty employees: APM 550 covers teaching faculty who transfer to another campus; APM 560 covers new appointees to academic positions.
Relocation expenses are provided for certain new appointees to academic positions. Such expenses are not provided automatically, nor do they constitute a perquisite of University employment. Academic appointees with any of the following title series and titles are eligible for consideration:
- Regular Professional series
- Professor in Residence series
- Acting series if appointed to regular series within one year of initial appointment
- Visiting series if immediately appointed to regular series
- Professional Research series if cost is allowable under the contract or grant
The Chancellor’s Office reimburses the first 50% of allowable expenses ( the Dean’s advance approval is required). For additional information, see Academic Personnel manual 560 (available at web site http:www.ucop.edu/acadadv/acadpers/apm/welcome.html) or call the UCLA Academic Personnel Office at 310/825-1197.
III. Definitions
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Terms |
Definition |
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Employee |
A current UC employee who is transferring UC locations or a new UC employee. |
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Household Effects |
Household and personal effects such as furniture, clothing, musical instruments, household appliances, foods, and other items that are usual and necessary for the maintenance of a household. Household effects do not include automobiles, other motor vehicles, farm tractors, implements and equipment, livestock, trailers with or without property, boats, belonging that are not the property of the employee’s immediate family, or building materials of any description. |
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Freight Costs |
Freight costs include the total charges for transporting household effects from the point of origin to the point of destination. Freight costs also include associated charges such as packing containers, labor, and insurance on household effects. |
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Moving and Transferring Expenses |
Moving and transferring expenses are defined as the reasonable costs of moving household goods and personal effects to a new residence. These costs also include the cost of travel to the new university location for the employee and his or her immediate family. |
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Nontaxable Reimbursement Amounts |
Nontaxable reimbursement is a reimbursement for moves and transfers that is not included in an employee’s gross income. The amount is recorded on the employee’s W-2 form as a fringe benefit that is excluded from taxation. The following expenses are nontaxable:
* Packing of furniture and personal belongings
* Transportation of furniture and personal belongings from old residence to the new residence
* Insurance and in-transit storage charges
* Travel and lodging expenses associated with the final move to the new residence by employee and members of employee’s household
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Provision For Removal Expense |
A fund administered by the Vice Chancellor- Academic Affairs and used to reimburse departments for all or part of the expenses incurred by moves and transfers of academic appointees whose salary is paid from General Funds, 19900. |
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Reasonable Costs |
Reasonable costs are those costs that are reasonable under the circumstances of a particular move (i.e., travel from old to the new residence must be made via a conventional mode of transportation using the shortest and most direct route available and in the shortest period of time normally required to travel the distance). |
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Relocation Allowance |
A relocation allowance is compensation intended to offset higher living costs in a new location. |
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Taxable Reimbursement amounts |
Reimbursement for expenses incurred for moves and transfers that must be included in an employee’s gross income and is therefore taxable. The following expenses are taxable:
* Pre-move house hunting, including travel, meals, and lodging once an offer has been accepted
* Meals and lodging while occupying temporary quarters in the Los Angeles area
* Meals associated with the final move to the new residence
* Rental automobile cost incurred while the primary automobile is being shipped to the new location
* Qualified residence sale, purchase, and lease expenses (including home improvements, disconnecting utilities, mortgage penalties, real estate taxes, breaking a lease, security deposits);
* Storage charges, except those incurred in transit and for foreign moves |
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Recruitment Expenses |
The reimbursement of travel expenses associated with interviewing prospective appointees to position requiring specialized training or experience of a professional, technical or administrative nature.
Reimbursements for authorized travel expenses such as airfare, hotel, and meals incurred during the recruitment process are not taxable to the prospective employee. Once an offer of employment has been accepted, travel expenses incurred by the prospective employee and family are considered taxable (e.g., househunting trips, temporary housing, etc.). |
IV. Authorization
Approval Authority for Moves and Transfers (Academic & Staff)
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Employee type |
Approval Authority |
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New Employee |
Staff
* Department head |
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Faculty
* Vice Chancellor- Academic Affairs |
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Employee type |
Approval Authority |
Terms |
Procedures |
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Transferring employees |
* The authority has been delegated by the President to the Chancellors and to Vice Presidents and University Deans who have line of responsibility for a department |
* Full reimbursement of transferring costs based on meeting the eligibility requirements indicated in section VI of Business and Finance Bulletin G-13 |
* See new employee " Procedures" below (section VI) |
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Exceptions |
Staff
* Director, Corporate Travel Program
Academic
* Vice Chancellor-Academic Affairs |
* Exceptions to policy may be approved when required by extenuating circumstances.
* Reimbursement is limited to the actual costs incurred, provided that they are deemed ordinary and necessary under the circumstances. |
1- The hiring department must request an exception to policy from the approval authority.
2- If approved, the hiring department must attach a copy of the approval to the Relocation Expense Form. |
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New Employees Relocation Allowance |
Staff
* Director, Corporate Travel Program
Academic
* Vice Chancellor-Academic Affairs |
* Employee must be classified as Senior Manager, Manager, or Senior Professional.
* Eligibility is limited to persons who, at the time of recruitment, are not employed by the University and who reside outside the State of California.
* Total relocation allowance may not exceed 25% of the employee’s annualized base salary.
* Relocation allowance is included in the employee’s gross income as taxable wages.
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In progress |
V. Allowable Expenses
Allowable Moving Expenses by Staff Employee Classification
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Moving
Expenses Support Staff |
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1. Transportation of household goods and personal effects from the old to the new residence.
Household effects may include those in storage and used by the employee at or before the time of the move to the new residence. |
X |
X |
X |
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2. Transportation expenses to transport the employee and member of the employee’s household from the old to the new residence. Members of the household may travel separately. |
X |
X |
X |
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3. Meals and lodging, enroute from the old residence to the new residence. The reimbursement of such a cost must be made according to University travel regulations.(Meals are taxable) |
X |
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4. Driving or shipping automobile(s) to the new residence. Automobiles can include vans, mini vans, passenger trucks, etc., that are used as the employee’s or spouse’s primary daily mode of transportation.
If the automobile(s) is to be used to
transport the employee and the employee’s household members, household goods, or
personal effects, the employee will be reimbursed for transportation costs for
parking and tolls fees plus eighteen (18)(effective January 06) cents per mile. This is the only mileage rate associated with moving expenses. The mileage rate allowed for University business travel is not applicable for this purpose. |
X |
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5. Storing and insuring the employee’s household goods and personal effects while in transit, if storage and insurance fees are incurred within any consecutive thirty (30) day period after removing the household goods and effects from the old residence to the new residence. |
X |
X |
X |
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6. Connecting and disconnecting utilities, but not to include refundable deposits. |
X |
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7. Transportation of domestic pets from the old residence to the new residence. |
X |
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8. Foreign employee’s passport expenses incurred with the commencement of work in the United States. |
X |
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9. Pre-move househunting trips, temporary living expenses, can be reimbursed following university approval of employment. At the discretion of UCLA, reimbursement of such expenses may be made for other members of the employee’s family. |
X |
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- University departments must not include reimbursement for any recruitment trips as part of the relocation expense.
(Relocation expenses include all the expenses incurred after the offer of the position, not before. Any expenses incurred before the acceptance of employment should be considered as recruitment expense.)
- Allowable Moving Expenses for Academic Appointees
Faculty employees: APM 550 covers teaching faculty who transfer to another campus; APM 560, covers new appointees to academic positions;
VI. Procedures
The following procedures have been developed to facilitate the reimbursement or payment for relocation expense, and to ensure all payments are in compliance with applicable University and IRS rules and regulations. The University will pay directly for most of the moving expenses directly including household goods, personal effects and transportation to minimize the traveler’s out-of-pocket costs; and also to minimize the income tax reporting for the employees in connection with non-taxable expenses.
At the time of hiring, departments should explain to the new appointee the tax issues involved in the non-deductible (non-excludable) portion of the move. As mentioned above non-excludable expenses (househunting trips, real estate, temporary housing and meals) must be included in the employee’s gross income. The UCLA Payroll Office deducts the appropriate tax percentage from the employee’s Federal and State tax, and will reimburse him or her the expense.
If the new appointee is coming from a foreign country for services rendered as an employee, a visa status that includes work authorization is required. Typical acceptable visa status types at UCLA include: J1, J2, H series, K1, K2, O series, Green card, TN . For details, contact the UCLA Payroll Office ( Tel# 310-794-8726).
A. Obtain Authorization (See Section IV)
1. Academic Appointees:
In most cases the department Chair or Dean issues an offer letter to new academic appointees. This letter includes the hiring agreement and an itemization of allowable relocation expenses. Submit a copy of the offer letter to the Academic Personnel Office (3109 Murphy hall, 140701, Tel# 825-1197). Relocation expenses are not provided automatically, Academic Personnel Office should receive a copy of the offer letter instead of the authorizing signature to approve such expenses.
2. Staff Appointees:
For non-academic appointees, the department head’s signature is required for any relocation expense reimbursement.
B. Provide the new appointee with a list of the University’s contracted moving companies. The current list of UCLA’s preferred vendors is available on the UCLA Purchasing Department’s web page (www.purchasing.ucla.edu) or by calling 310-794-6016.
If the new appointee is coming from another country, he or she should also contact UCLA’s contracted moving companies; the moving company will arrange the move with one of their own agents within that country.
C. Instruct the traveler to:
1. Obtain an estimate in writing from two or more of the moving companies on the list.
2. Advise you, preferably in writing, of the chosen company and the estimate amount. (Reminder: The estimate should include only those expenses that the University will pay for.)
D. If the selected quote is under $15,000, process an L.V.O. with the class
code (A) and fax the
order to the vendor. If the selected quote is over
$15,000, process a requisition with the class
code (R). Fax copies of all estimates to UCLA Purchasing
Department to the attention of J.D. Chamberlain x48020. Purchasing will
issue a Purchase Order and the vendor will contact the employee to make the
final arrangements.
E. After the move, the traveler must pay the movers C.O.D. for any services provided that are not covered by the University.
F. The University receives the mover’s invoice directly and makes the payment for allowable expenses to the moving company.
UCLA Travel Accounting department will automatically pay all invoices up
to 5% over the total invoiced amount.
G. Airfare arrangements for the new employee and eligible family members must be made through the UCLA Travel Center. The traveler may contact the center at
310/ 206-2639
(8 a.m. to 5:00 p.m., Monday through Friday), or via email (Travel@finance.ucla.edu) to obtain airline schedules, fare quotes, availability, etc. He or she should then advise the department of the specifics of the travel arrangements (e.g., flight number, airline) as soon as possible.
- The traveler must provide:
- Desired date(s) of travel
- Originating airport (e.g., Chicago has 2 airports)
- Name(s) of passenger(s) and relation to employee
- Flight schedule (airline flight number., time)
- Preferences for all travelers (seat: aisle or window? all seated together? any special meals)
H. Create an order for airfare arrangements on line through Accounts Payable’s PAC system. The system generates a PAC order number. Provide the PAC order number to the UCLA travel counselor in order to issue the airline ticket. (Note: Fare quotes obtained by the employee cannot be guaranteed until ticketed.)
The UCLA Travel Center will charge the department account directly for the expense, eliminating the need for the traveler to use personal funds and the need for submission of a reimbursement claim afterwards.
I. The department completes one Relocation Expense form per move. All excludable expenses which were paid to a third party or were paid through the EDB system must be listed on the first section of the form; any reimbursable must be listed expense on the second section of the form for reimbursement (see sample). All expenses must be submitted for payment or reimbursement within 21 days after they were incurred.
J. Process taxable expenses through Payroll’s EDB system. These payments should be processed on the EDFT screens. (One time payment using the DOS code of MOV). Please refer to the on-line Payroll Time Reporting Systems Manual ( Special Section).
K. Academic appointees, Relocation Expense Forms should be submitted to the UCLA Academic Personnel Office (3109 Murphy Hall, 140701). The Academic Personnel Office sends the form to the UCLA Travel Center for processing. Staff appointees completed Relocation Expense Forms should be submitted directly to the UCLA Travel Center (Suite
130 Wilshire Center, Mail Code 143348); the signature of the department head is required.
L. File all the receipts for excludable and non-excludable expenses. These receipts must be maintained by the host department for 5 years to satisfy IRS audit requirements.
VII. Funding Sources
In progress
VIII. Tax Treatment
A. Taxable Moving Expense
Reimbursement of moving expenses that are taxable must be included in the employee’s gross income as wages subject to withholding of income and employment taxes. This includes payments for meals, pre-move
househunting trips, temporary living expenses, and real estate expenses. The current tax withholding rates are 28% federal, 6% state, and the appropriate
rate of FICA as determined by the employee’s appointment. The gross amount of the payment and withholdings will be included on the W-2 in the year in which payment is made.
B. Non-taxable Moving Expense
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Payment Made to* |
Taxability |
Tax Reporting |
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Third Party Vendor |
Non-Taxable |
Not Required |
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Incidentals paid directly to employee |
Non-Taxable |
Reported information on W-2 |
- The majority of payments (household move, airfare, etc.) will be paid to the third party per University policy. Incidental paid directly to employees will be out-of-pocket expenses (i.e. transportation to L.A.)
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