Process for Handling Moving Expenses
New faculty and staff at Central Michigan University may be authorized, through their appointment letter, a maximum dollar amount for the direct costs of moving their household goods to the Mt. Pleasant area. Some allowable expenses are: moving van rental, u-haul trailer rental (or some other self-service conveyance), gasoline costs for automobile (if towing a trailer), lodging and meal expenses for the driver of the towing vehicle only, and storage costs in the Mt. Pleasant area if difficulty is encountered finding housing. Some expenses which are not allowable are: lodging and meal expenses for individuals other than the driver of the towing vehicle, automobile repairs or maintenance expenses, gasoline expenses for automobile (not towing a trailer), and living expenses in the Mt. Pleasant area while seeking housing.
If you will be using a moving firm and CMU is covering the entire cost of the move, it is preferred that you provide cost quotes from two or three different firms. The University has agreements with six national moving firms giving CMU employees preferred rates. These rates are available to you whether or not the University will be paying for the cost of your move. Information about contacting these three firms can be found above.
There are two separate procedures available for handling expenses incurred in moving your household goods to the Mt. Pleasant area:
All moving expenses, whether paid directly to a vendor or reimbursed to the employee, are 100% taxable to the employee. This tax, including Federal, State, and FICA, will be withheld from the employees pay after the expenses have been paid by the University.
Direct Billing Procedure can be used when a moving firm has been contracted to do the moving and the cost is greater than $500. If this procedure is selected, the firm's name and mailing address must be submitted to the hiring department at least two weeks prior to the intended move. With this information, a letter of authorization will be prepared and mailed to the firm indicating the University's agreement to pay up to a maximum dollar amount toward your moving expenses. Usually, this letter of authorization is sufficient authorization to allow the firm to transport goods although some firms may not be willing to participate in such a plan.
When the move is complete, the employee pays the driver directly for any expenses in excess of the stipulated maximum allowance. The moving company will then bill the University directly for the allowable maximum amount or the total dollar amount if less than the maximum authorized. Questions regarding direct payments with the moving company may be directed to the Purchasing department (989) 774-3929. Although the payment is made directly to the moving company, the employee (not the university) remains responsible for negotiating and contracting with the moving company. In the event a dispute arises between the moving company and the employee, responsibility for resolving the matter rests with the employee.
Reimbursement Procedure can be used either when a moving firm is contracted or the employee moves herself/himself. With this procedure, the employee pays all expenses connected with the move to the CMU work location. After the move is completed, the employee needs to submit an employee reimbursement voucher detailing expenses with all itemized original receipts * to her/his supervisor. The employee's supervisor must approve and forward to the Payroll & Travel Services Office (Warriner 204).
The reimbursed amount is directly deposited into the employee's bank account; therefore, the employee must complete the direct deposit form for employee reimbursements. Both the direct deposit and the employee reimbursement voucher can be found on the forms page of the associate controller's webpage. The University will not pay amounts in excess of the maximum allowance stipulated in the appointment letter.
*Original itemized receipts are required for charges for lodging, tolls, and parking (excluding metered parking which must be indicated on the travel report). Receipts are not necessary for meal expenses, although reimbursement will be limited to the maximum allowable per diem amount. Mileage is reimbursed for one-way trip only at the standard rate in effect at the University. For more information about taxable moving expenses, please see Publication 521 at the IRS.