Systems and Procedures
A Division of The Corporate Controller's Office
IN

Procedure CR2049 - Reporting Moving Expense Compensation

Office of the Corporate Controller

Policy Steward facilitating procedure: Associate Vice President for Finance and Corporate Controller

Table of Contents:


GENERAL:

Internal Revenue Service regulations require that the University must retain a record of reimbursement of moving expenses to employees or to a moving company on their behalf. Refer to HR104 and HR75 in the Policy Manual for the respective dollar amount limits. Any exceptions to these limits need the approval of the Corporate Controller.

PROCEDURE:

ITEMIZING MOVING EXPENSE COMPENSATION:

The Moving Expenses Support Form is prepared for each employee move that is paid for by their administrative area. The Department of Purchases will provide the administrative area with estimates or give instructions to proceed with the move through University-approved vendors under contract. This information must be itemized and supplied on the Moving Expenses Support Form for each move made from one residence to another during a calendar year. The details of the payment are itemized on the form from information appearing on official University cash or purchasing documents.

The form is submitted to Accounting Operations with the receiving report or SRFC with attached receipts. The employee should retain a copy of the Moving Expenses Support Form for his/her tax records.

Completed forms are accumulated by Accounting Operations, listed and submitted on a monthly basis to the Payroll Office, where employee records are continually revised.

RECORDING AND REPORTING COMPENSATION ON FORM W-2 WAGE AND TAX STATEMENT:

All W-2 information showing monthly and annual earnings and withholdings, as well as adjustments to the W-2 forms for moving expense compensation, are maintained in the Payroll Office. The federally taxable amount of the reimbursement is included in the employee's gross income as compensation for services, and is reported on the W-2 and given to the employee and the Internal Revenue Service (IRS) at the end of the calendar year. The non-taxable amount is included in the appropriate box on the W-2.

After the last payroll for the calendar year has been charged to University departments, the Payroll Office begins preparation of the W-2 Wage & Tax Statements for each employee.

When the W-2 forms are completed, Payroll verifies that all adjusted totals are accurate, at which times the W-2 forms are mailed to employees.

In compliance with Internal Revenue Service mandates, W-2 Forms are electronically filed each years with the IRS.

AUDIT COORDINATION - FINANCIAL AND PROCEDURAL

The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.

RECORD RETENTION, DISPOSITION AND DESTRUCTION:

Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management, and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.

Upon expiration of a stated period of time, documents must be discarded and/or destroyed, unless permission is granted by Records Management Officer or designee to retain the records. Archival records created more than 20 years prior to the current date must be reviewed before destruction. Units should also contact the University Archivist before discarding any document which may be of permanent or historical value to the University. To safeguard the privacy of individuals, documents that contain salary information, personally identifiable information (PII), or student records must also be shredded. See Policy AD53 - Privacy Policy and AD22 - Health Insurance Portability and Accountability Act for additional information regarding privacy and the protection of an individual's personal information. For documents that must be shredded, departments may arrange for Blue Bag service by contacting the Blue/White Shredding Program of the Office of Physical Plant. Exceptions to the practice are as follows:

Additional questions may be directed to the University Archivist or the Records Management Officer.

EXHIBITS:

None

CONTACT INFORMATION:

For questions, additional details, or to request changes to this procedure, please contact the University Tax Manager.

CROSS REFERENCES:


Procedure Status:

Date Approved: 09-11-08

Most recent changes:

Revision History: