|Policy No.:||4-14||This policy applies to:|
|Policy Name:||Relocation Assistance||Non-exempt staff|
Relocation benefits may be provided to:
- Full-time faculty
- Full-time exempt staff
Loyola University New Orleans will reimburse only reasonable expenses which have received advance approval from the respective Division Vice President and for which satisfactory proof of expense is submitted. Relocations must meet the IRS distance and time test definition as outlined in their Publication 521, “Moving Expenses,” which means any relocations occurring within 50 miles of Orleans Parish do not qualify for assistance.
When approved, the following prorated benefit is covered by Human Resources for relocation. Any amount over this must be approved by the respective Division Vice President and will be charged to the employee’s department:
|51 to 500 miles radius||up to $2,000|
|501 - 1,000 miles radius||$2,001 to $2,250|
|1,001 - 1,500 miles radius||$2,251 to $2,500|
|Over 1,500 miles radius and/or outside North America||$2,501 to $4,000|
An example of the above-prorated schedule; 800 miles to New Orleans is eligible for $2,150 while 1,200 miles is eligible for $2,350.
The employee must submit original receipts with a Loyola University Expense Statement, signed by the respective Division Vice President or College Dean and Provost Office, to Human Resources for processing. The reimbursement request must be submitted within 45 days of the expense date and no later than 180 days following employment date. Any expenses submitted for reimbursement or paid directly to a vendor for items related to the move (hotel, moving company, etc.) must be submitted to Human Resources for review before processing.
In accordance with IRS accountable plan regulations, reimbursements must be submitted within 60 calendar days after business-related expenses are paid to avoid inclusion as wages for tax purposes. Reimbursements processed after 60 days from the date the expense was paid will be added to W-2 taxable earnings and appropriate taxes will be withheld from the employee’s next regular paycheck. Relocation expenses are paid based upon the following criteria:
- All relocation expenses are considered taxable (temporary housing, pre-approved house-hunting trips, real estate, lodging, meals, etc.) by the IRS and will be reported as ordinary income on the employee’s Form W-2.
- Specific expenses not covered by Loyola’s relocation policy include, but not limited to, are: furniture purchased after relocation to furnish apartment or house; side trips or sightseeing; driver’s license fees; car tags; security deposits to obtain new residence; mortgage penalties; breaking or entering into a lease for old or new residence.
Employees should discuss their relocation expenses with a tax accountant or refer to IRS Publication 521 at www.irs.gov/pub/irs-pdf/p521.pdf.