OSU MOVING
“The inside picture”
Presented by Business Affairs/FA&A
Agenda
O Review of governing rules and policies
O Who can deduct moving expenses
O Taxability related to moving expenses
O Processing of moving reimbursements
O Case Study
Who Made These Rules?
Internal Revenue Service
Oregon University
System
Oregon State
University
Governing Policy
O Internal Revenue Service – Publication 521
O Defines who can deduct moving expenses
O Move closely related to start of work
O Distance test
O Time test
O Other guidelines
OUS Policy
O OUS Fringe Benefits/Moving Exp Policy 66.200
O Defines Limits: Time / Expense / Per Diem
OSU Policy
O OSU Moving Policy 415
O Relocating employees must move at their
own expense
O Business Affairs/FA&A Review
O Applies governing rules
O Reviews for taxability
O Account Code
O Audits documentation
O Assist in processing
Who Is Eligible?
O OSU Employees:
O Unclassified positions
O Classified positions (rare)
O The employee’s offer letter must state the
maximum amount eligible for moving
reimbursements
Relocation/Moving
Agreement Form
O This document is considered “sensitive”
O Needs to be signed and forwarded to
Business Affairs/FA&A prior to expenses
being incurred
O If on a grant/gift funds – OPAA approval
CATEGORIES
HOUSE HUNTING
RELOCATING/MOVING
TEMPORARY LIVING
MISCELLANOUS
House Hunting
O Expenses incurred in the process of finding
housing in the new work location.
O Travel Costs
O Lodging
O Meals
O Ground Transportation
O NOTE: All House Hunting expenses are Taxable
Relocating/Moving
O Expenses incurred when relocating from old location to
new location
O Moving personal items
O Direct Billing – Moving companies
O Transportation
O Lodging
O Meals
O Other Expenses
O Note: Taxability based on expense type
Temporary Living
O Expenses incurred after the employee has
relocated to the new location but
permanent housing has not been secured.
O Lodging
O Meals
O NOTE: All Temporary Living expenses are
Taxable
Miscellaneous
O Miscellaneous: Based on actual expense
O Could include:
O Closing costs, Utility hookups
O Does not include:
O Refundable deposits, furnishings or décor
O Capped up to $1500
PROCESSING
SET UP
SUBMISSION
PAYMENT
Prior to Processing
O New employee must be set up in Banner
HRIS System for employee verification
O Relocation/Moving Agreement form must be
on file with Business Affairs/FA&A before
expenses are incurred
Submission Process
1. Travel Reimbursement Entry System
O Transfer to Business Affairs “Accounts Payable”
Inbox in TRES for tax review
O Documentation
2. Relocation Reimbursement Form
O Email to Business Affairs staff as a PDF document
for tax review
O Documentation
3. Direct Payment to moving company
Payment
O Employee Payments:
O Non-taxable:
O Issued through Accounts Payable
O Taxable:
O Included on their paycheck; Supplemental Rate
O Business Affairs reports to Central Payroll
O Direct Vendor Payments:
O Commonly issued to Moving Companies
O The relocation/moving agreement form must be
on file in Business Affairs/FA&A
CASE STUDY
Case Study – The Beaver Story
O Olivia Beaver accepted OSU’s offer of
employment in May 2012. She will start working
at the Enviro Dept starting 9/16/2012.
O She and her family; Walter, Fred and Lucy will
begin looking at houses in Corvallis June 2012.
O The Beavers have scheduled their relocation to
Oregon around August 1, 2012.
O The Beavers will stay in a condominium until
their personal items arrive and they can move
into the permanent home.
House Hunting
O June 22-26, 2012
O The entire Beaver family flew round trip from
Boston to Portland.
O They rented a mid-size car from Budget to
drive from Portland to Corvallis.
O They family stayed in a local hotel in
Corvallis for 4 nights.
Moving Week
O Beavers pack personal belongings in
preparation for Mayflower Moving Company to
transport.
O Walter Beaver (spouse) drives personal vehicle
from Boston to Corvallis August 1-5th, 2012
O Olivia and children (2) fly on one-way trip from
Boston to Portland on August 5th, 2012
O Personal belongings stored until permanent
housing is available.
Moving
Temporary Living
O The Beaver family moves into condominium awaiting
their permanent housing Aug 5th-15th, 2012
Misc. Expenses
O Beaver family has moved into their
permanent home. Closing costs and utility
hook up expenses have been incurred.
Documentation
O Actual receipts must be retained by OSU
O Receipts need to show:
O Proof of payment
O Who paid the expense
O Method of payment
O Other
Helpful Links
O Business Affairs Relocation and Moving
http://oregonstate.edu/fa/businessaffairs/reloc
ation-and-moving
O OSU FIS 415 Relocation and Moving Policy
http://oregonstate.edu/fa/manuals/fis/415
O PaCS – Buy Orange / Moving Services
http://pacs.oregonstate.edu/buyorange/moving
QUESTIONS?
Contacts
O Business Affairs
O Financial Accounting & Analysis
O Stephanie Smith 737-1825
O Rae Lee Aguilar 737-0635