Moving Expenses

General

Moving expenses for relocation can be paid for unclassified faculty and staff who move more than 50 miles to their new location. All expenses must be paid with private funds. No state funds can be used, and no exceptions are made. Sources of funding allowed include KU Endowment Association (KU Endowment) fund 725, but some can be paid from KU Center for Research, Inc. (KUCR) funds 720 and 721. Authority to approve moving expenses to be reimburses by KU Endowment funds resides with the authorized representative responsible for those funds on deposit with KU Endowment.

Moving office or lab equipment for the use in the employee’s place of work should be paid separately and not included as part of the employee’s moving expense. The process for payment is the same as moving employee’s office content (expense account 521200).

Procedures

To begin the process for paying moving expenses the employee and department are to complete the written agreement.

Written Agreement

Moving expenses may be paid only after the employee agrees in writing (Form DA-22) to remain in University service for 12 months from the date of transfer or appointment, unless separated for reasons beyond the employee's control that are acceptable to the University. If the employee leaves before the 12-month period, the employee must reimburse the University of Kansas the full amount received. In the event of an employee's early termination, the department is responsible for collecting the full amount paid to the employee. The person responsible for the funds on deposit with KU Endowment or KUCR is required to sign Form DA-22 as the designated official "Agreement for Reimbursement of Moving Expenses".

Moving Expenses

The Taxable Moving Expense Analysis Worksheet can assist with the process of planning a move and capturing the expenses that may be reimbursed.

The value of moving expenses paid with KU Endowment or KUCR funds for the benefit of a KU employee are taxable to the employee and will appear on the employee's W-2 form. All payment of moving expenses through direct reimbursement of KU (State) employees must be paid through the KU payroll process no matter the funding source. When submitting moving expense documentation for payment/reimbursement, include the completed form Additional Fringe Benefit Income for W-2 Reporting.

• Cost of Moving Personal and Household Items

  Preferred Method: The preferred method for paying a moving company is to have the cost direct-billed rather than reimbursing the employee. The invoices should be sent to the attention of the department, but then are submitted directly to KU Endowment or KUCR for payment rather than Payables. Three estimates are required for KUCR funds with the employee utilizing the lowest bid.. Employees are not limited to moving only 12,000 pounds. There are other restrictions that do not apply when the University is direct-billed. Whenever possible, this method should be used.

  Reimbursing an Employee: If the moving company cannot direct-bill the cost and the employee must be reimbursed for moving personal and household items, three firm rate bids must be obtained. The bid includes the cost of transportation, material and labor for packing and unpacking, delivery, and insurance. The employee must use the lowest responsible carrier. The employee can only be reimbursed for moving up to 12,000 pounds. If the carrier normally charges by cartons or cubic feet, the actual weight must still be obtained.

• Moving a Mobile Home

  The employee may be reimbursed for either of the following:
  
  A mileage allowance at the established IRS moving mileage rate, including the payment of necessary tolls, charges, and permit fees if the trailer or dwelling is transported by the employee.
  
  Commercial transportation of the trailer or dwelling including tolls, charges, and permit fees.

• Self-Moves

  Self-moves are allowed when deemed desirable by both the employee and the department provided the costs appear reasonable. While estimates are not required, the department may request estimates be provided.

  Reimbursable expenses include the rental costs plus insurance of a moving van or trailer or private car mileage (one-way) at the current mileage rate. Fuel for the moving van is reimbursed at the actual amount with receipts or the standard mileage rate in IRS publication 521. Repairs for the moving van are not allowed.

  Packing material (boxes, tape, etc.) is reimbursable.

  Paying others (friends and family) to help move is not a reimbursable expense. This includes buying meals as “payment” for those helping.

• Storage

  Employees may be reimbursed for storage of household goods before being delivered to the new residence.

• Airfare

  Airfare for moving purposes may be reimbursed when purchased in accordance with State procurement policy and will be taxable as a moving expense.

• Lodging

  Up to 30 days of lodging can be reimbursed as taxable while the employee is occupying temporary lodging and waiting to occupy a new residence. Lodging is reimbursed at the State travel rates for employees. Lodging is reimbursed for single occupancy only, even though the employee may be accompanied by the employee's family. 

• Meals

  Meals while en route to the new residence can be reimbursed. Alcoholic beverages are not reimbursed. Employees will use the Meals and Incidental Expense (M&ID) rates per state policy. The day and time the employee leaves the old residence and arrives at the new residence along with the number of quarter day increments being reimbursed will need to be submitted with the moving expense paperwork.

• Transportation for Employee and Family Exceeding Tax Exempt Rate

  Mileage for the employee and family members between the old and new residence is reimbursable at the State standard mileage rate.

• Multiple Trips

  Reimbursement of expenses for multiple move-related trips must receive prior approval.

• House Hunting

  Lodging, meals, and mileage reimbursements for house hunting trips must follow State travel rates for employees.

Required Actions