ACE may have a business need for employees to reside in certain locations within the United States, therefore the College will reimburse certain expenses incurred due to a relocation up to a maximum of $10,000. The amount allowed for a relocation will be determined upon the decision and must not exceed the stated maximum amount. The purpose of this policy is to provide a standard procedure for the relocation of a newly hired or transferring exempt level employee to locations elsewhere in the United States. The provisions of this policy will apply only to assignments and relocations that are planned to exceed 12 months. Employees relocating on their own accord are not eligible for relocation benefits.
ACE will reimburse reasonable amounts or provide advance assistance of expenses incurred as a result of the relocation of employees for distances that exceed fifty miles from their current place of residence and assigned work location. Please note that if advance assistance (also known as a “lump-sum” benefit) is provided, this will be reported as taxable income to the employee.
All relocation expenses must be incurred within 90 days of the date the written relocation agreement is signed. Expenses incurred after this period will not be reimbursed. Some expenses may be paid directly by ACE to the vendor if negotiated prior to the relocation. For all other reimbursement expenses, the employee must obtain receipts for incurred expenses and submit them in our expense reporting system.
Approved Expenses
A. Lodging
ACE will reimburse costs for temporary lodging for eligible employees and dependents for a period not to exceed 30 days. Lodging expenses may be at the site of departure or site of arrival or split between the two sites. (Please note that travel and lodging reimbursements beyond the actual movement of persons and property will be reported as taxable income to the employee.)
B. Community Visit and Transportation
An employee and spouse will be reimbursed for travel costs and lodging costs to the planned transfer area to orient themselves with the community and look for appropriate housing. The maximum community visit period permitted is five days and can be taken all at once or split between no more than three (3) round trip visits. Travel noted 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. (Please note that any community visit reimbursements will be reported as taxable income to the employee.)
D. Household Goods Storage and Transportation
ACE 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. The employee will make all arrangements with the relocation transportation company.
ACE will pay actual costs for the transportation of two non-recreational vehicles from point of departure to point of arrival.
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 ACE.
The transportation and boarding of small domestic pets, dogs, cats, etc. is permitted. ACE will reimburse costs associated with movement and boarding of such pets for a period not to exceed 30 days.
E. Miscellaneous Household Fees
ACE will pay the cost of appliance installation and fees for utilities installations to a maximum of $500.
F. Insurance
1. Relocating employees are covered during periods of active status while traveling under ACE’s accidental death and dismemberment insurance plan with coverage provided at two times salary to a maximum of $400,000.
2. If the employee wants to purchase insurance for goods in-transit above the carrier-provided insurance, such excess coverage will be at the employee’s expense.
Repayment Provision
If the employee resigns and leaves ACE voluntarily within 12 months of the date of the relocation, the employee agrees to and will be subject to repayment of costs associated with the relocation.
Tax Considerations
Prior to or at the time the written relocation agreement is signed, the employee can elect to meet with the CFO to review the potential tax implications of all costs reimbursed by the company and the potential impact on the employee’s W2 taxable income. Employees receiving relocation benefits are strongly encouraged to meet with a licensed tax professional to review their individual circumstances to determine the specific impact to individual taxable income.
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