Administrative Procedures

Moving & Temporary Assignment Expense Reimbursement

 

1. Purpose

Outline moving and temporary assignment allowances and expense reimbursement.

2. Scope

This procedure applies to all KCTCS employees.

3. Moving Expense Reimbursement

3.1

For new college employees initial approval for moving expense should be obtained from the College President and final approval should be obtained from the KCTCS Vice President for Administrative Services.

3.2

For new employees assigned to the System Office or for college CEOs, initial approval should be obtained from the appropriate KCTCS Vice President or KCTCS Chancellor and final approval from the KCTCS President.

3.3 Moving Allowance Amount:

1. The final approval authority should establish a moving allowance amount for the new employee.
   
   
2. The KCTCS Assistant Vice President of Business Services/COO shall be notified of the employee’s name and the amount of the moving allowance and any expenses paid on behalf of the employee as these expenses are subject to payroll withholding taxes per IRS regulations.

3.4 Moving Estimates:

1. The employee shall obtain three (3) estimates from moving companies and select the lowest bid.
   
   
2. Prior approval by the College President/KCTCS Vice President/Chancellor as appropriate, is required in the event that there is an unusual circumstance and the firm that did not submit the low bid is chosen by the employee.
   
   
3. The employee shall retain copies of all estimates to submit with their reimbursement package as supporting documentation.
   
   
4. Any special circumstances (e.g., payment required at the time of delivery) shall be included in the invoice or payment document.

3.5 Tax Requirements:

1. Moving expenses paid by the employer is considered a taxable event per Internal Revenue Service regulations.
   1. Any moving expense paid by KCTCS on behalf of an employee will be added to the employee’s taxable wage and applicable taxes will be deducted from the employee’s check.

3.6 Allowable Taxable House Hunting Reimbursements:

1. Meal expenses
   
   
2. Expense of buying/ selling home
   
   
3. Pre-move house-hunting expenses
   
   
4. Security deposits
   
   
5. Storage charges – except those incurred in transit

3.7 Reimbursement Process:

1. Moving allowance reimbursement requests for expenses shall be submitted as an Expense Report.
   
   
2. The taxable reimbursements will be added to the employee’s paycheck on the next available payroll.
   
   1. Payroll code TXB is used on paychecks to identify taxable moving expenses.
      
      
   2. These reimbursements are included as income on the employee’s W2 Form.
      
      
3. If the employee, the moving company, and KCTCS have completed an arrangement where KCTCS will directly pay the vendor, then the college should process a PAY voucher made payable to the moving company.
   
   1. Voucher should include three (3) quotes from moving companies.
      
      
   2. A copy of the payment will be forwarded to System Office Payroll Services for tax purposes.

4. Temporary Assignment Expense Reimbursement Process

4.1 Temporary Housing:

1. Under certain circumstances, KCTCS may provide funding or reimburse new hire employees for temporary housing, while the employee is finding a permanent residence or for employees on a temporary assignment that meets IRS temporary housing qualifications.
   
   1. Employees hired on an interim or temporary basis, who do not have an expectation of employment continuation, may also have paid temporary housing. Per Internal Revenue Service regulation, the payment is considered a fringe benefit and subject to tax withholding.
      
      
   2. KCTCS System Office Payroll Services and the KCTCS Assistant Vice President of Business Services/COO should be notified to allow for review of taxability of payments.
      
      
   3. Temporary housing is not to exceed 180 days without the approval of the KCTCS System President.
      
      
2. If paid with KCTCS funds, the procedure to process such payments is as follows:
   1. College submits a PAY voucher to the landlord in advance of rent due date.
      1. If this is to be a long-term arrangement due to the temporary assignment being greater than 180 days, then KCTCS Office of Procurement to Payment Services should be consulted for possible inclusion of payments with regular issuance of recurring lease payments.
         
         
   2. Deposits for housing should be paid via PAY voucher.
      1. Once the employee has moved to a permanent residence, the deposit should be returned to the college business office.
         
         
      2. The employee has the responsibility of ensuring the entire amount of original deposit is returned on a timely basis.
         
         
3. If KCTCS is reimbursing the employee, the procedure to process such payments is as follows: 
   1. The employee submits an Expense Report and documentation of the expense (receipt, canceled check, etc.) shall be attached.
      1. If taxable, the appropriate taxes will be withheld on the next available paycheck.