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Sections 45-7-22 through 45-7-24 of the Official Code of Georgia Annotated (O.C.G.A.) authorize the reimbursement of relocation expenses to State employees and charges the Office of Planning and Budget (OPB) with the establishment of rules, regulations, and policies necessary to administer the reimbursement program. The O.C.G.A. is available on the internet at http://w3.lexis-nexis.com/hottopics/gacode/default.asp.
OPB Policy Memorandum No. 2 (Revision 7) dated September 1, 2006 addresses the payment of employee relocation expenses and State Personnel Administration Personnel Board Rule 22 provides uniform guidelines and procedures when reimbursable employee relocations are required. In general, each agency is authorized to set specific policies and establish procedures within the regulations established by OPB Memorandum No. 2 (Revision 7) and State Personnel Administration Personnel Board Rule 22.
The following guidelines and procedures have been established by the Department in accordance with the above-mentioned authority.
Employees who obtain prior approval in accordance with the Employee Relocation Expense Authorization Policy, hereafter referred to as TOPPS 7170-1 on the Employee Relocation Expense Authorization Form, hereafter referred to as DOT 1041, are eligible for reimbursement of relocation expenses. Upon approval of the DOT 1041, the move must be made within one (1) calendar year from the date the employee reports for work at his/her new location to be eligible for reimbursement.
Reimbursement of employee relocation expenses will be made based on an approved Employee Relocation Expense Report, hereafter referred to as DOT 1042. The procedures for completing the DOT 1042 may be read in MAP 1-11, Employee Relocation Expense Reimbursement Procedures. Expenses must be within the guidelines of TOPPS 7170-1.
The Employee Relocation Expense Reimbursement Package should contain the following:
The employee must certify the accuracy of the data on the DOT 1042 and acceptance of the legal requirement to remain an employee of the agency that transfers him/her; and in the location to which he/she is transferred for twelve (12) months after the relocation is made. The employee must also affirm that to the best of his/her knowledge no other family member has independently applied to DOT or any other State Agency for reimbursement of expenses arising from this relocation and that he/she will not knowingly allow any family member to apply for or gain reimbursement for this relocation.
A copy of the DOT 1042 shall be retained in the employee's personnel folder.
Reimbursement will be made only after all relocation expenses have been incurred and the Employee Relocation Expense Reimbursement Package has been approved and processed.
The Internal Revenue Service (IRS) Code requires that an employer report as Wages, Tips, and Other Compensation on each employee W-2 form all relocation reimbursements to IRS. However, since the Code permits an employee to deduct all expenses for which the Employee Relocation Expense Authorization policy authorizes reimbursement, agencies should not withhold taxes on any portion of a reimbursement.
Within this framework, IRS permits some flexibility in the timing and the manner in which a W-2 is prepared and distributed. The Department has chosen to show the relocation reimbursement on the W-2 normally given to an employee at the end of each calendar year.
The IRS further requires that an employer provide an employee with a detailed breakdown, by specified categories, of the reimbursement no later than the January 31 following the move. This information is broken down on the employee’s check stub as Relocation Expense Taxable and Relocation Expense Nontaxable. The employee also has a copy of the DOT 1042.
The IRS Code permits employees to deduct relocation expenses on their personal income tax returns. Such deductions are required to break down the expenses in the same manner reported on the check stub on IRS Form 3903. IRS Publication 521 provides detailed instructions in the preparation of this form. IRS From 3903 is available on the internet at http://www.irs.gov/pub/irs-pdf/f3903.pdf.
Note: The applicable IRS From 3903 should be used. The link provided above is for 2007 returns.
The revised rules, regulations and procedures issued by the Office of Planning and Budget (OPB) became effective on December 1, 1989. Updates and revisions to the policy may be made by OPE from time to time as necessary for the effective administration of State law authorizing the reimbursement of relocation expense. Changes made by OPB will be immediately applied upon the effective date of the revision even if the Department policy has not yet been revised.
Employee Relocation Expense Reimbursement Procedures, MAP 1-11
Employee Relocation Expense Report, DOT 1042
Employee Relocation Expense Authorization Policy, TOPPS 7170-1
Employee Relocation Expense Authorization Procedures, MAP 1-10
Employee Relocation Expense Authorization Form, DOT 1041
Travel and Business Expense Authorization Policy, TOPPS 7195-1
Travel and Business Expense Reimbursement Policy, TOPPS 7195-2
Employee and Business Expense Report, DOT 1031
For further details, contact:
Office of General Accounting, Accounts Payable Unit
Document History:
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