College departments may, in hiring new employees, agree to pay a portion of the cost of relocating individuals and their families to Hanover. Procurement & Auxiliary Services will coordinate arrangements for the relocation of newly hired members of the faculty and administration.
Recently hired employees moving to the Hanover area may be reimbursed per mile for transportation of their automobile(s) to their new home. (See http://www.dartmouth.edu/~control/ for rates.) All relocation costs should be charged to natural class 7773, regardless of whether the expenses are paid directly (by submitting invoices payable to the vendor for payment) or employees are reimbursed for their out-of-pocket expenses (by submitting approved travel vouchers).
WHAT WILL BE REPORTED ON THE NEW EMPLOYEE'S W-2 FOR TAX PURPOSES?
Certain types of moving expenses paid or reimbursed by the College must be treated as additional compensation to the employee, subject to both income and employment tax withholding. If the expenses paid by the College qualify as deductible moving expenses and are supported by original receipts or other appropriate documentation, the payments are not required to be reported on the employee's W-2. In summary,
Non-Taxable Moving Expenses - not subject to payroll reporting, if supported by adequate documentation:
the cost of moving household goods and personal effects to the new primary residence; and
the cost of traveling, excluding meals, to the new primary residence; such costs would include airfare, mileage reimbursement for driving a personal automobile, and lodging costs en route from the old primary residence.
Taxable Moving Expenses - subject to payroll reporting and tax withholding:
the cost of traveling, after obtaining employment, to the new place of work for the purpose of searching for a new residence; i.e., "house-hunting" trips;
expenses of selling, purchasing, or leasing the old or new residence;
temporary storage costs in excess of thirty days;
cost of meals en route to the new residence; and,
cost of travel for spouses and/or dependents other than during the move to a new residence.
A Department may elect to cover certain taxable expenses of relocating a new employee to Hanover; but the employee should be informed in advance of the move that the payment of these expenses will be subject to payroll reporting and tax withholding.
Note: It is critical that all relocation expenses, either directly paid to vendor or employee reimbursements, are charged to natural class 7773 to facilitate all necessary IRS reporting.
Oversight:
The primary responsibility for interpretation of these policies rests with the departments and supervisors who are authorizing travel and approving expense reimbursements.
Exceptions to these policies may only be granted by the President, a Dean, a Vice-President, or an administrative officer specifically acting on their behalf, by memo to the Controller.
Employees whose travel is funded by a sponsored grant or contract should check in advance of the trip with the Office of Grants & Contracts to ensure that all agency procedures and restrictions are followed.
Prior to processing Travel and Entertainment Expense Vouchers for payment, the Controller's Office will routinely review these documents for accuracy and proper documentation. Depending on the dollar amount of the reimbursement, this review includes verification of: (a) proper supporting documentation, (b) accuracy of addition and mileage calculations, (c) authorizing signature, and (d) account numbers and subcode's. In the course of the review, the Controller's Office may request approval from senior administrative officers when claimed reimbursements appear unreasonable or do not comply with College policy.
