The University may pay relocation expenses for employees hired for the following types of positions:
- Permanent executive, professional, or administrative personnel in supervisory positions. (SAAM 60.10.30)
- Permanent faculty. (SAAM 60.10.30)
- Temporary faculty if the position is supported by sponsored funds and the sponsor agrees to pay relocation expenses.
When there is an inability to fill a critical lower level position, the University may pay moving expenses. In such a case, the employing department is responsible for preparing and retaining justification. Contact Purchasing for specific requirements. (SAAM 60.10.30)
Per the IRS tax reform, effective 1/1/2018, all relocation expenses are taxable income. This includes lump sum relocation allowances, self-moves, and travel expenses related to the relocation (i.e. lodging, meals, airfare, etc.). In addition, the following expenses are also taxable income:
- House hunting trips prior to move: Travel expenses, e.g., transportation including airfare, auto rental, mileage, meals, and lodging for the new hire.
- Costs for maintaining a temporary residence in the area of the new job. Includes lodging at the new location.
- Storage charges.
The employing department must process a Relocation Compensation Request form and send to Payroll Services for processing.
Source of Funds
There are certain relocation expenses that are not allowed on state appropriated funding. The following expenses must be paid from 17A (discretionary) accounts only:
- All expenses incurred during house hunting trips;
- Meals for spouse and/or dependents;
- Lodging that exceeds the total of the applicable maximum daily lodging rates for one person;
- Expenses related to driving or transporting more than two personal motor vehicles from the old residence to the new residence; and
- Storage costs in excess of 90 days.
All lump sum payments, either relocation allowances or incentive based payments, are processed by Payroll Services. The payment amount will be added as income to the employee’s paycheck with the applicable payroll tax withholdings deducted.