Employee Relocation Expenses
The University may provide a moving allowance when relocation is necessary for employees, who are hired on a continuing full-time basis for the period of at least one academic year and who accept employment with the University.
Key points:
Any arrangements for relocation or moving allowances must be included in the offer letter for new employees
The only way to provide compensation for moving allowances for a new employee is to make one-time lump sum payment, not to exceed one month's salary (before taxes and fringe), paid through payroll to the employee on their first paycheck. The payment is fully taxable and taxes will be withheld according to IRS rules. (The IRS made this change on January 1, 2018 that states all relocation expenses are taxable.)
For those who are offered moving allowances, departments may offer less than a full month's salary.
Units may require repayment of the moving allowance, up to the full amount, if employment is terminated within 12 months.
Departments should expect to be charged full fringe benefit rates on these payments because they are fully taxable.
All offer letters dated October 15, 2019 or later must comply with this new policy.