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Viewing: 1270.1 – University of North Carolina at Chapel Hill Procedure for Employee Moving Expense Reimbursements

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Current Status: Active PolicyStat ID: 5136999

1270.1 – University of North Carolina at Chapel Hill Procedure for Employee Moving Expense Reimbursements

Introduction

Purpose

Due to legislation changes in the 2017 Tax Cuts and Jobs Act which reinstated personal moving expense payments as taxable wages, the University has changed the payment procedure so that the payment and tax implications are contemporaneous.

Scope of Applicability

This policy applies to departments who are engaging in the recruitment of highly qualified and/or highly recruited individuals and issuing payment to relocate the individual for initial employment.

Procedure

Departments should submit the payment request with all corresponding documentation via a Moving Expense Reimbursement lump sum payment ePAR form. The ePAR should be submitted after the new hire action has executed, utilize the first day of the current pay period, and use account 517140. The work period start and end date should be the same date as the payment date. Receipts for reasonable and actual moving expenses should be provided as back up to this payment. Reimbursements for purchases of personal property are not permitted.

In addition to the reimbursement of actual moving expenses, 30% is added to mitigate the tax impact to the employee. For example, Professor X receives an offer letter which includes an allotment of $2,500 to reimburse moving expenses. Professor X provides $2,100 in receipts of actual and reasonable moving expenses. $2,100 is then multiplied by 30% ($630) which increases the amount to $2,730; however, since this total amount exceeds the offer letter amount of $2,500, the ePAR payment should be $2,500.

Regardless of the amount submitted via an ePAR, the employee should not expect to net the amount submitted via receipts due to tax considerations.

House hunting and temporary housing reimbursements submitted after the employee's start date should use the ePAR procedure for reimbursement. No additional percentage is included. Pre-employment expense reimbursement processes for house hunting expenses remain the same. Departments should use account 528430 on campus voucher payments to ensure these amounts are reported by Accounts Payable to Payroll Services for inclusion in the employee's W-2.

Related Data

Instructions for creating an ePAR may be found here:

https://ccinfo.unc.edu/files/2014/07/ePAR-Overview-QRC.pdf

Contact Information

Primary Contacts

Payroll Services                               919-962-0047           payroll@unc.edu

All revision dates: 7/3/2018, 6/22/2018, 2/28/2018, 10/6/2014, 10/1/2014, 12/10/2010
Attachments:

Approval Signatures

Step Description Approver Date
Publication Matthew Teal: University Program Specialist 7/3/2018
Finance Communication Office Janet Kelly-Scholle: Associate Director 7/3/2018
Payroll Director Walter Miller: Director of Payroll Services 7/3/2018
Payroll Manager Stephanie Kidd: Payroll Manager 7/3/2018
Older Version Approval Signatures
Step Description Approver Date
Publication Matthew Teal: University Program Specialist 7/3/2018
Finance Communication Office Janet Kelly-Scholle: Associate Director 7/3/2018
Payroll Director Walter Miller: Director of Payroll Services 7/3/2018
Payroll Manager Stephanie Kidd: Payroll Manager 7/3/2018
Older Version Approval Signatures
Publication Matthew Teal: University Program Specialist 6/22/2018
University Policy Review Committee Jennifer DeNeal: Administrative Director 6/22/2018
Finance Policy and Communication Subcommittee Janet Kelly-Scholle: Associate Director 6/21/2018
Payroll Director Walter Miller: Director of Payroll Services 6/21/2018
Payroll Manager Stephanie Kidd: Payroll Manager 6/21/2018
Bernard Law: Dir. Purchasing Services [AD] 2/28/2018