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Before you start
- Ensure that all moving-related expenses are necessary, proper and reasonable.
- To minimize out-of-pocket expenditures, request payments be made directly to a vendor who is providing moving-related services
- If this is the first time you will be receiving a UCSC non-payroll payment, complete a Payee_Setup_204
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Eligibility
General Requirement:
A SMG employee is eligible to receive reimbursement of reasonable moving-related expenses. Department heads are authorized to approve payment of actual moving expenses of new appointees and current employees eligible to receive such payments. A department may pay all or a portion of the expenses. The appropriate approval authority is to be consulted before the hiring unit offers such benefits.
- New Appointee. To be eligible for reimbursement, the appointee’s position must require specialized training and/or experience of a technical, professional, or administrative nature. In addition, the new appointee must reside outside the commuting distance of the campus to which he or she has been appointed.
Specific Requirements:
An appointee must meet all of the following criteria in order to obtain a reimbursement of moving-related costs:
- Be a new hire or a current UC employee being assigned to a new UC location
- Be qualified for and have accepted ands intends to fulfill his or her new appointment for at least one year from the date the appointment commences
- Be in active status in the Payroll Personnel System prior to the reimbursement
- Be relocating his/her primary residence in order to accept the new appointment
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Authorization
A moving expense reimbursement request is approved by a department head with the appropriate delegated authority.
- A division head may redelegate authority in writing to a direct report to approve non-exceptional moving expenses.
- Reimbursement of moving-related expenses that are exceptions to policy must be approved by the appropriate Dean, Campus Provost / Executive Vice Chancellor, or Chancellor. Refer to Appendix: Moving expense summary information for a list of expenses requiring exceptional approval.
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Reimbursable costs
General Provisions:
- Only actual and reasonable costs will be reimbursed
- One household move is allowed per SMG appointee
- The move must be completed within one year of the date the appointee first reports to the new job
Reimbursable Expenses:
- Household goods and personal effects:
- From former to new primary residence
- Includes packing, crating, transporting, unpacking, and uncrating
- Must use a common carrier from UCSC's preferred vendors list
- Hiring authority must explicitly approve reimbursement of costs for disassembling and reassembling unusual items, such as swing sets, pools, satellite dishes, etc.
- Books (professional or scholarly), records and equipment, including laboratory supplies:
- Requires itemized documentation of costs that must be discussed with hiring authority to determine extend costs will be reimbursed and documentation requirements
- House-hunting trips:
- Costs for looking for new living accommodations, including transportation, meals, and lodging
- Limited to two trips each for the appointee and the appointee's spouse or domestic partner
- Reimbursement is based on UC BFB G-28 Policy and Regulations Governing TravelHouse-related expenses
- Penalty to terminate a contract, such as a lease or mortgage, on the appointee's former primary residence
- Furnished temporary lodging, up to 90 days
- Residential parking fees, up to 90 days
- Meals for first 30 days of residence in temporary quarters not having cooking facilities
- Reimbursement is based on UC BFB G-28 Policy and Regulations Governing TravelMotor vehicles
- Transport of up to two personal motor vehicles which may include motorcycles
- If driven, reimbursement is based on the moving reimbursement rate listed in UC BFB G-28 Policy and Regulations Governing Travel (Appendix A).
- Moving supplies (if appointee is moving him- or herself):
- Includes vehicle and moving equipment rental, boxes, and packing materials
- Passport processing expenses:
- If incurred with the commencement of work in the United States
- Pets (household):
- Domesticated animals normally and ordinarily kept or permitted in the appointee's personal residence
- Relocation (Professional) services:
- Such services may include providing local destination information, home sales assistance, home search, etc.
- Return trips to former residence:
- Storage and insurance while in transit:
- Applies to costs incurred within any 30-day period after removal of household goods and effects from former primary residence
- May include costs for up to 90 days storage immediately after removal from primary residence
- Travel expenses en route:
- For travel, meals, and lodging between former and new primary residences for the appointee and members of his or her household
- Includes one day's lodging in the area of former primary residence if not suitable for occupancy due to move
- Includes one day's lodging in the area of new primary residence if not suitable for occupancy on day of arrival
- Utilities: disconnection and connection
- Excludes refundable deposits
If you leave UC employment within 39 weeks of starting work, any moving/relocation expense reimbursement payments made to you will be considered taxable compensation, subject to all mandatory payroll deductions.
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Non-reimbursable expenses
Expenses related to moving the following items are not reimbursable for any employee:
- Assembly and disassembly of unusual items, such as swing sets, swimming pools, satellite dishes, hot tubs and storage sheds
- Animals, except household pets normally and ordinarily kept or permitted in the appointee's personal residence
- Building supplies
- Canned, frozen, and bulk foods
- Farm equipment
- Firewood
- Motorized recreational vehicles, such as boats, airplanes, camping vehicles, trailers, jet skis, etc.
- Plants
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Receipt and documentation requirements
The following receipts and documentation must be submitted with a request for payment or reimbursement of moving-related expenses:
- Each expense must be listed in detail
- As applicable, an original receipt or equivalent electronic receipt must be submitted in support of each expense
- As applicable, a copy of your employement offer letter
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Obtaining reimbursement
All moving-related expenses must be accounted for on a completed, signed, and approved Moving_Relocation_Reimbursement form:
- Attach original receipts for ALL relocation expenses to the form to substantiate each expense’s reasonableness. The following are examples of expenditures requiring a receipt.
- Airfare
- Lodging
- Rental car or van
- Taxi or ground transportation
- Parking/Tolls
- Meals & incidentals
- Professional movers (Household, Library, Vehicle)
- House hunting expenses (lodging, meals, rental car, etc.)
- Temporary living expenses (lodging, meals, rental car)
- Storage charges
- Miscellaneous expenses (packing supplies, shipping, etc.)
- Attach a copy of your employment offer letter to the form. The letter must show the job title and moving allowance authorized.
- Forward the completed and signed form, along with receipts, and supporting documentation to the Divisional Funding Authorizer, who is responsible for reviewing and approving the report.
- A divisional funding authorizer is usually a supervisor, department chair, or senior campus official, who has been officially delegated authority to approve the funding for the payment of your moving-related expenses.
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Payments made directly to a vendor
Having a payment made directly by UCSC to a vendor for moving-related services, such as shipment or storage of household effects, reduces out-of-pocket expenditures and the risk of a personal tax liability.
- Use a common carrier from the University’s preferred vendor list. Request that a purchase requisition be processed in the CruzBuy system. For more information, refer to the Procurement Office website.
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Tax considerations
The Internal Revenue Service (IRS) requires all of the following conditions be met in order for a moving expense reimbursement or move-related payment made directly to vendors to be treated as non-taxable:
- The moving expense must be incurred within one year from the time you first report to the new job, even if the appointment is effective prior to the report date.
- You must be employed full-time for at least 39 weeks during the 12-month period immediately following the move.
- The distance from your UCSC job location must be at least 50 miles farther than the distance between your old job location and your former principal residence. For example, if your old job location was 5 miles from your former residence, the distance from your UCSC job location must be at least 55 miles from your former residence.
The IRS requires that the following common, moving-related expense reimbursements be reported as taxable income, subject to payroll tax withholding and Form W-2 reporting.
- Meals and incidentals while moving from the old to the new residence
- Temporary living expenses up to 30 days, including meals and lodging
- Rental car, while the primary automobile is being shipped to the new location
- Pre-move house hunting, including travel, meals and lodging
- Household goods storage charges, except those incurred in transit and for moves from foreign countries, for up to 30 days
If you leave UC employment within 39 weeks of starting work, any moving/relocation expense reimbursement payments made to you will be considered taxable compensation, subject to all mandatory payroll deductions.
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Funding sources that can be used
This funding limitation applies to the payment of moving expenses of extramurally-funded appointees:
- State funds (“19900”) may not be used.
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Speed up getting your payment by avoiding these common oversights
- Forgetting to obtain the signature of a division head for approval of the reimbursement of expenses that are exceptions to policy.
- Forgetting to sign the forms
- Forgetting to attach original receipts to forms
- Forgetting to submit a Payee_Setup_204
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Policy references
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Distance Test
This test is used to determine whether or not moving expenses can be deducted:
| 1. |
Enter the number of miles from your old home to your new workplace |
Miles |
| 2. |
Enter the number of miles from your old home to your old workplace |
Miles |
| 3. |
Subtract line 2 from line 1. if zero or less, enter -0-
is line 3 at least 50 miles? |
Miles |
| 4. |
Yes. You meet this test.
No. You do not meet this test. You cannot deduct your moving expenses. |
Note: Members of the Armed Forces may not have to meet this test. See Members of the Armed Forces
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Where to get help
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Moving expense summary information
The following chart provides a summary of reimbursement, accounting, and tax information related to moving expenses for eligible non-academic employees. If you leave UC employment within 39 weeks of starting work, any moving/relocation expense reimbursement payments made to you will be considered taxable compensation, subject to all mandatory payroll deductions.
| Moving-related Expense |
UCSC Account Code |
MSP/PSS Positions % Reimbursable |
SMG Positions % Reimbursable |
W-2 Reported Taxable Income |
|---|
| House Hunting |
|---|
| House hunting (travel, lodging, meals, rental car, and all other related expenses not to exceed G-28 allowances |
004540 |
Exceptional approval |
100% |
Yes |
| Items Shipped |
|---|
| Household goods and personal effects, including packing & unpacking *** |
004520 |
100% |
100% |
No |
| Motor vehicle transport (up to two vehicles)** |
004520 |
100% |
100% |
No |
| Storage charges - non-transit-related up to 30 days after removal from former primary residence |
004540 |
100% |
100% |
Yes |
| Enroute Travel |
|---|
| Airfare |
004520 |
100% |
100% |
No |
| Automobile (private) mileage - paid at the rate allowed by policy |
004520 |
Not to exceed cost of air coach transportation |
100% |
No |
| Automobile (private) mileage - paid in excess of moving rate* |
004540 |
Exceptional approval |
Exceptional approval |
Yes |
| Rental car |
004540 |
Exceptional approval |
100% |
Yes |
| Rental van (to include fuel & related expenses) |
004520 |
100% |
100% |
No |
| Taxi |
004520 |
100% |
100% |
No |
| Parking/tolls |
004520 |
100% |
100% |
No |
| Enroute Meals & Incidentals |
|---|
| Meals & incidentals not to exceed BFB G-28 “UC Policy and Regulations Governing Travel” allowance rates |
004540 |
100% |
100% |
Yes |
| Enroute Lodging |
|---|
| Lodging en route (room & tax only) |
004520 |
100% |
100% |
No |
| Temporary Lodging at Destination |
|---|
| Storage charges - in-transit or foreign move |
004520 |
100% |
100% |
No |
| Temporary lodging quarters up to 30 days in the area of the new job location. |
004540 |
100% |
100% |
Yes |
| Meals only if temporary quarters do not have cooking facilities. Costs not to exceed G-28 allowances |
004540 |
100% |
100% |
Yes |
| Other |
| Pets (household) - Kennel charges not included |
004520 |
100% |
100% |
No |
| Passport processing (employee only) |
004520 |
Exceptional approval |
100% |
No |
| Utilities disconnection and connection |
004520 |
Exceptional approval |
100% |
No |
* Mileage reimbursement paid in excess of the allowable rate for moving is taxable income reportable on Form W-2.
** Does not include any recreational vehicles, e.g., boats, canoes, kayaks, camping vehicles, snow machines, jet skis, etc.
*** Must use a common carrier from the University's preferred vendors list
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