DHS Adminstrative Policy: Job Rotation and Developmental Assignment Reimbursements

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Policy Title: Job Rotation and Developmental Assignment Reimbursements

Policy Number: DHS-040-005
Version:
1.0
Effective Date:
02/28/2002

Approved By: DHS Chief Administrative Officer
Approved Date: 02/28/2002

Purpose:

Establish a consistent practice of reimbursement to sending employers for payments made to employees on job rotation or developmental assignment.

Policy:

It is the policy of DHS to encourage the highest and best use of staff. Job rotations and developmental assignments allow employees to increase their knowledge and skill. These opportunities must be balanced with the other needs of DHS.

Job Rotations and Developmental Assignments will not begin until a Memorandum of Agreement has been signed by the employee, sending supervisor and receiving supervisor.

The receiving supervisor will be responsible for approving the employee's time reports.

Generally, expenses that exceed the employee's current commute costs, up to allowable costs, can be negotiated and approved. All negotiated items must be specified in the agreement.

The method of invoicing the receiving employer will be determined after the agreement is finalized. However, the preferred method of paying employee is to charge personal service expenses directly to the receiving agency.

Items that may be included in an agreement:

Private car travel at the state rate.
Bus passes.
Carpool or van pool costs (must not exceed private car mileage and parking costs).
Commercial lodging.
Non-commercial lodging.
Other - Rental for space to park a motor home or trailer and apartment rental. Check with Financial Services for other exceptions.

NOTE: Internal Revenue Services Rules apply to these agreements. Reimbursement may in certain circumstances subject an employee to paying taxes for reimbursements.

The IRS Rules state:

"Away from tax home agreements" must be one year or less. Payments after the first year are taxable income to employees. Payroll Services will report these expenses as income to the IRS and account for them as income.
All payments, even in the first year, above the actual costs are taxable income. E.g.. Fixed transportation payments (of $100 per week) which are above the actual amount $62 ($.31 x 200 miles = $62) are considered taxable income $38 ($100 - $62 = $38).

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