Relocation Expense Reimbursement Policy

Purpose

This policy establishes the guidelines and procedures for reimbursing relocation expenses incurred by newly hired employees of McNeese State University. It ensures compliance with Louisiana Policy and Procedure Memorandum (PPM) 49 and applicable IRS regulations, particularly those outlined in IRS Publication 15-B regarding the taxability of moving expenses.

Policy Statement

Relocation expense reimbursements are intended to assist in attracting qualified employees to the University. However, no state funds may be used to reimburse moving expenses. All relocation expenses must be paid through University accounts and pre-funded by the McNeese Foundation before any reimbursement to employees occurs. Additionally, moving expenses are considered taxable income under current IRS regulations and will be reported accordingly.

Funding Source

Relocation expenses may not be reimbursed using state funds under any circumstances. If such expenses are to be covered, the necessary funds must first be transferred from a McNeese Foundation account to the appropriate University index. All moving expenses must then be processed through the University’s moving expenses account (770160). The Payroll Office will use the activity recorded under this account to identify relocation reimbursements and ensure proper tax reporting and withholding in accordance with IRS regulations.

Reimbursement Parameters

Relocation expenses may be reimbursed up to a standard maximum of $2,000, provided original itemized receipts are submitted and approved. In exceptional circumstances, reimbursements up to $5,000 may be considered with prior written approval from the vice president for business affairs or their designee. Reimbursements will not be issued as flat-rate or lump-sum payments; all claims must be supported by actual documented expenses.

Eligible Expenses

Reimbursable relocation expenses may include, but are not limited to:

• Transportation of household goods
• Travel costs (e.g., mileage, lodging en route)
• Temporary storage of household goods

Expenses that are not eligible for reimbursement include:

• Meals
• Costs associated with buying or selling a home
• Lease break penalties
• Vehicle shipment (except in cases where it is the only method of transportation and is pre-approved)

Procedure

Prior to the employee’s start date, the hiring unit must confirm the availability of McNeese Foundation funds for relocation expenses and request that those funds be transferred to the University’s moving expenses account (770160) under the hiring unit’s index. The employee must submit original receipts for eligible relocation expenses to their hiring unit within 60 days of incurring the expense. The hiring unit will then submit a reimbursement request through the University’s standard reimbursement process, including documentation of the McNeese Foundation transfer and all supporting receipts. Reimbursements will be processed through University accounts payable and the amount reported as taxable income to the employee.

Compliance

All relocation expense reimbursements will be conducted in accordance with Louisiana PPM 49, IRS Publication 15-B, and applicable University and McNeese Foundation policies and procedures. Failure to comply with these guidelines or to provide adequate documentation may result in denial of reimbursement.

Communication

This policy is distributed via the University Policies webpage.