Moving and Relocation Expenses
The University is authorized, depending upon availability of funds, to assist in paying a portion of the moving and travel costs of a new faculty member or administrator.The State of California and the Trustees of the California State University have issued rules and regulations concerning the procedures for making reimbursement of household moving expenses for a new employee. All claims for reimbursement must be accompanied by receipts for each expenditure processed by the University. Claims for Faculty must be approved and signed by the Vice President for Academic Affairs. Claims for administrators must be approved and signed by the Vice President for Administration.
The University letter of offer indicates the maximum dollar amount which the University may pay toward relocation, moving and travel expenses. All costs paid or reimbursed to an individual regarding relocation, moving, and moving-related travel are considered income and are reported to the Internal Revenue Service and California State Franchise Tax Board.
Important Notice Regarding Tax Law Changes for Moving and Relocation Expenses
Effective January 1, 1999, reimbursements for the following expenses are subject to withholding, including Federal income tax (25%), State income tax (6%), Medicare (1.45%) and Social Security(6.2%) for a total of 38.65% withholding.- pre-move househunting trips
- sale of former residence (see also section Reimbursement for Sale of Residence below)
- temporary living expenses
- leases (unexpired or new)
- meals connected with the move
- reimbursement for mileage connected with the move in excess of 27 cents per mile effective July 1, 2008.
Scope
- Current employees. Whenever a current CSU employee is required by the current appointing authority to change his /her place of residence because of a change in assignment, promotion or other reason related to the employee's duties deemed to be in the best interest of the CSU, such employee shall receive reimbursement for his/her actual, necessary and reasonable moving and relocation expenses. To qualify for reimbursement, the new primary job location must be at least 50 miles farther from the employee's former home than the old primary job location. The appointing authority may authorize exceptions to this requirement in cases where it creates unusual and unavoidable hardship for employees.
- Initial appointments. An individual who has been offered a position within the CSU by an appointing authority and has accepted such appointment, may receive reimbursement for his/her actual, necessary and reasonable moving and relocation expenses. This provision applies to an employee of a CSU campus who accepts an ongoing assignment at another CSU campus. Every appointee will not be authorized moving and relocation expense reimbursements. The determination of who is to receive such reimbursements and the amount of such reimbursements shall be made by the appointing authority.
- Temporary appointments. A current CSU employee who accepts a long-term temporary assignment offered by a CSU appointing authority other than his/her current appointing authority may receive a temporary relocation allowance. To receive consideration for this allowance, the employee's temporary job location must be a least 50 miles farther from the employee's permanent residence than the former job location. (The appointing authority for the temporary assignment may authorize exceptions to this requirement in cases where it creates unusual and unavoidable hardship for temporary employees.) The temporary employee must also maintain a permanent residence in the vecinity of the temporary appointment.
- Reimbursement. Reimbursement of relocation expenses shall be payable from monies made available for such purpose by the appointing authority. In addition, relocation expense incurred by newly-appointed Presidents shall be reimbursed by the appropriate campus.
Definitions
For the purpose of these procedures, the following definitions will apply:
- "Appointing authority" shall mean the Chancellor or campus President, as appropriate.
- "Chancellor" and "President" shall include designees.
- "Campus" shall include the headquarters office as well as any of the campuses of the CSU.
- "Household goods" means personal effects and items used or to be used in the employee's residence necessary for the maintenance of a household. Household or personal goods include items such as furniture, clothing, musical instruments, household appliances, foods, and other items which are usual or necessary for the maintenance of a household. Household effects shall not include automobiles or implements thereof, other motor vehicles, boats, equipment, firewood, building material, etc.
- "Long term temporary assignment" shall normally mean an assignment period of six months or more.
- "Employee" refers to either a current CSU employee or an individual who has been offered a position within the CSU by an authorized authority and has accepted such offer.
Reimbursement for Moving and Relocation Expenses
Full or partial reimbursement, within budgetary constraints, may be allowed for the actual and necessary expenses incurred for packing, insurance, transportaion, storage in transit (not to exceed 60 calendar days), and unpacking and installation of the employee's household goods at the new residence, when properly documented by invoices and receipts. Should employees elect to move themselves, reimbursement for such moves may not exceed the costs that would have incurred had a commercial firm been used.An employee and spouse may be reimbursed for relocation travel (defined as a one-way trip from the former residence to the general area of the new campus or other primary job location) in accordance with the CSU Internal Procedures Governing Travel Expenses and allowances. (When authorized, travel expenses for spouses will be reimbursed on the same basis as travel expenses for employees.)
An employee and spouse may be reimbursed for actual lodging expenses, supported by a voucher, plus meal and incidental expenses in accordance with the Reimbursement for Travel: Subsistance Allowance section. When authorized, lodging, meal and incidental expenses for spouses will be reimbursed on the same basis as subsistence expenses for employees.
- This allowance shall not be paid for more than 60 days unless the appointing authority has determined in advance that the search for a new residence will result in unusual and unavoidable hardship for an employee and spouse and, therefore, has granted an exception.
- This allowance shall terminate immediately upon establishement of a permanent residence.
Procedure for Payment of Claims
The appointing authority may contract directly with a carrier for moving and relocation services. Claims (STD 262), including receipts, or invoices verifying the actual costs of a move shall be submitted directly by the employee to his/her appropriate appointing authority or designee. Claims/invoices for faculty moving expenses must be approved by the Vice President for Academic Affairs. Claims/invoices for administrator's moving expenses must be approved by the Vice President for Administration.Reimbursement for Sale of Residence
Whenever an employee is required to change assignment and designated place of work which requires the sale of a residence, the employee may be reimbursed for actual and necessary selling costs as determined by prevailing practices within the area of sale. Claims for reimbursement must be substantiated by the seller's closing escrow statement and other pertinent supportive documents. Note: Reimbursement for expenses associated with the sale of a residence are subject to the wittholding of taxes. Refer above to the section titled Important Notice Regarding Tax Law Changes for Moving and Relocation Expenses. Actual and necessary selling costs may include:
- Brokerage commission;
- Title insurance;
- Escrow fees;
- Prepayment penalties;
- Taxes, charges or fees fixed by local authority required to consummate the sale of the residence; and
- Miscellaneous seller's costs customary to the area may be reimbursed if determined approriate by the appointing authority.
Claims for the sale of residence must be submitted within one year following the date the employee reports to the new work location designated by the appointing authority. An extension may be granted by the appointing authority upon receipt of evidence warranting such extension.
Reimbursement for sale of a residence that does not conform to these procedures may be granted when the appointing authority has determined that reimbursement is reasonable in light of the individual circumstance and that the employee will otherwise be subject to hardship by reason of the change of residence.
Settlement of a Lease
Whenever an employee is required to change an officially designated place of work and such change requires the settlement of a lease on the employee's former residence, the employee may receive the actual and necessary cost of settlement of the unexpired lease of a maximum one year.Claims for settlement of a lease shall be documented and itemized and submitted to the appointing authority within six months following the new reporting date except that the appointing authority may grant an extension upon receipt of evident warranting such extension prior to the expiration of the six-month period. Reimbursement shall not be allowed if the appointing authority determines that the employee knew or reasonably should have known that relocation was imminent before entering into a lease agreement.
Temporary Relocation Allowance
A temporary relocation allowance to defer the cost of housing may be authorized for the duration of a temporary appointment as described in the "Scope: Temporary Appointments" section. The allowance may be negotiated at any rate up to and including 75% of the current long-term in-state travel subsistance allowance (see Reimbursment for Travel: Subsistance allowance section). The full temporary relocation allowance paid to an employee as reimbursement must be supported by a voucher, lease agreement, or other documentation reflecting actual housing expenses. Reimbursement may be claimed by the employee, via the submission of appropriate receipts, no more frequently than once per month. Housing expenses for long-term temporary employees may also be paid directly by the temporary appointing authority, up the the maximum reimbursement level noted above.
Appointing Authority for Reimbursements
The Chancellor or campus President shall approve, deny or grant exceptions for all moving and relocation reimbursements. The Chancellor or President may also authorize reimbursement for actual, necessary and reasonable relocation expenditures not identified in these procedures. Any such reimbursement shall be documented and paid in accord with established accounting practices. Authorization from the Chancellor or President may not be delegated to a person in a position lower than the principal business officer.
Repayment Provisions
If an employee whose moving or relocation expenses have been reimbursed, does not continue his/her employment with the CSU for a period of at least two years (unless the discontinuance of the employment was the result of death, disability or other similar unexpected cause beyond the control of the employee as determined by appointing authority, the employee or appropriate representative shall repay the following percentage of the amount received for reimbursement for such moving and relocation expenses:
- 100% if employed less than 6 months
- 75% if employed at least 6 months but less than 12 months
- 50% if employed at least 12 months but less than 18 months
- 25% if employed at least 18 months but less than 24 months
