FAM No. 97-14
March 31,1997
FINANCIAL ADMINISTRATION MEMORANDUM NO. 97 - 014 (II.G.6.)
To: Bureau Assistant Directors, Administration
Chief Executive Officer, Interior Service Center
Bureau Finance Officers
Coach Acquisition, Fiscal and Property Services
From: Focus Leader, Asset and Debt Management
Office of Financial Management
Subject: Home Marketing Incentive Payments - FTR Amendment 61
Attached is a copy of pages 13763 through 13764, Federal Register,
Volume 62, No. 55, dated Friday, March 21, 1997, which contain Federal
Travel Regulation, 41 CFR 302-14, Amendment 61. This amendment
provides authority for agencies to pay a home marketing incentive to a
transferred employee who successfully markets his/her home while
participating in the third party relocation service program.
The Department's contractor provided relocation service program is open
to each employee transferred for the benefit of the government.
Participation in the program requires the employee to elect to use the
third party relocation service contractor under contract to the General
Services Administration to provide home sale and home purchase services.
An employee being transferred for his/her benefit or convenience is not
entitled to relocation allowances or eligible for participation in the
relocation services home sale program.
All employees participating in the relocation services program may
receive a home marketing incentive payment by successfully marketing
his/her residence in accordance with the provisions of this amendment.
The amount of the incentive payment will the lesser of: 1) five percent
of the price the third party relocation service contractor paid the
employee for the residence or, 2) the government savings resulting from
the amended value sale. Attachment 2 contains examples of home sale
transactions and the applicable employee home marketing incentive
entitlement.
The primary purpose of the home marketing incentive program is to reduce
the total cost associated with relocating an employee; thus, home
marketing may not be used as a basis for justifying occupancy of
temporary quarters or an additional period of temporary quarters may not
be approved to allow more time for home marketing.
The amount of the employee's home marketing incentive payment will be
made by the finance officer after all payments have been made to the
relocation services contractor. The Internal Revenue Service Code
requires the appropriate withholding for Federal, state and local income
tax; and social security and medicare taxes. The gross amount of the
payment will be reported to PAY/PERS for inclusion in the employee's
taxable income. Home marketing incentive payments are not covered by
the withholding tax allowance (WTA) or the relocation income tax
allowance (RITA).
This amendment is effective March 22, 1997 and applies to an employee
whose effective date of transfer, date of reporting for duty at the new
duty station, is on or after March 22, 1997.
A new benefits object class code (12xx)is being established to provide
the ability to record and report home marketing incentive allowance
payments.
Please direct any questions you may have on this subject to Mr. Lesley
Oden on (202) 208-6225.
William E. Webber /s/
Attachments
(1 of 2)
(2 of 2)
Prior Financial Administration
Memorandums on this Subject:
No. 90-020 (II.G.6.), April 4, 1990 - Canceled
No. 91-021 " , Undated - Canceled
No. 91-025 " , May 3, 1991 - Canceled
No. 91-083 " , November 19, 1991 - Canceled
No. 93-011 " , February 22, 1993 - Canceled
No. 94-017 " , March 14, 1994 - Canceled
No. 94-034 " , May 6, 1994 - Canceled
No. 95-002 " , January 18, 1995 - Canceled
No. 95-031 " , September 28, 1995 - Canceled
