Relocation Expenses Policy

The purpose of this policy is to provide a standard procedure for the relocation of newly hired and transferring exempt level staff to locations elsewhere in the United States. Under the general provisions of this policy, a written relocation and repayment agreement for relocations will be entered into with the new hire or employee. The provisions of this policy will apply only to assignments and relocations that are planned to exceed 12 months.

[Company name] will reimburse reasonable amounts or provide advance assistance of expenses incurred as a result of the relocation of staff for distances that exceed fifty miles from their current place of residence and assigned work location.

[Company name] will audit expenses against relocation agreements and employees must document receipted expenses claimed for reimbursement.  

Any request to exceed the provisions of the standard relocation policy (outlined below) must be approved by two levels of management above the department head.

All relocation expenses must be incurred within 180 days of the date the written relocation agreement is signed. Expenses incurred after this period will not be reimbursed. Some expenses will be paid directly by [Company name] to the vendor. For all other reimbursement expenses, the employee must obtain receipts for incurred expenses and submit them along with company reimbursement request forms.

Approved Expenses – Standard Agreement

Per diem and Lodging

[Company name] will reimburse costs for per diem living expenses to include temporary lodging for eligible employees and dependents for a period not to exceed 30 days. Lodging and per diem expenses may be at the site of departure or site of arrival or split between the two sites. Per diem expenses for meals and incidentals will be provided at one-half the daily rate for the employee for each eligible dependent.

Site Visit

An employee and spouse will be permitted and will be reimbursed for travel costs, per diem and lodging costs to the planned transfer site to tour the company facility, orient themselves with the area in which it is located, and look for appropriate housing. The maximum site visit period permitted is five days.

Transportation – Employee/Dependents

Costs for relocation travel of the employee and dependents to the transferred facility will be reimbursed. Additionally, costs for travel to and from the transfer site will be reimbursed for up to three (3) two-way trips for the employee to visit the prior home. Travel noted above will be by means of the most cost-effective common transport carrier using coach fare; however, in many cases, personal vehicles may be the preferred means of travel.

Household Goods

[Company name] will pay actual costs for the packing, movement, and insuring of household goods and personal effects for such goods up to a maximum of 14,000 pounds from point of departure to point of arrival. If storage of goods is required at either point, the company will pay for up to 30 days of storage. [Company name] will make all arrangements with the relocation van company directly through its national contract. 

Any property of special value, i.e., art objects, paintings, jewelry, firearms, precious metals, and antiques should be separately insured or transported by the employee.

The transportation of boats, recreational vehicles, firearms, special machinery, outdoor playground equipment, hot tubs, and other specialty items of a similar nature will not be paid by [Company name]. 

The transportation and boarding of small domestic pets, dogs, cats, etc. is permitted. [Company name] will reimburse costs associated with movement and boarding of such pets for a period not to exceed 30 days. 

Miscellaneous Household Fees

[Company name] will pay the cost of appliance installation, fees for utilities installations, re-registration of personal vehicles and driver's licenses to a maximum of $[amount].

Insurance

Relocating employees are covered during periods of inactive status while traveling under [Company name] accidental death and dismemberment insurance plan with coverage provided at two times salary to a maximum of $[amount]

Under its national contract, while household goods are in transit or storage, the company provides per pound insurance for up to 14,000 pounds of goods. If the employee prefers to purchase excess insurance over and above this limit, [Company name] will provide vendor contact information to obtain an estimate of cost for excess insurance.

Repayment Provision

If the employee resigns due to circumstances within his or her control, as determined by [Company name], within 12 months of the date assigned to the transferred facility, the employee agrees to and will be subject to repayment of costs associated with the move.

Tax Considerations

Prior to or at the time the written relocation agreement is signed, the employee will meet with Accounts Payable staff to review the federal and state tax implications of all costs reimbursed by the company and its impact on the employee's W-2 taxable income. The employee will be given a written estimate of costs for tax planning purposes.