Finance 304: Relocation Allowance
To provide guidance on payments of employee moving and relocation expenses.
Authorized Relocation Expenses: The costs associated with the moving and relocation of an employee that are considered deductible under IRS regulations by an employee in conjunction with his/her moving or relocation to a new place of employment. Deductible moving expenses are the cost of moving household items and personal effects of the employee and his/her dependents and their travel costs. Deductible travel costs include lodging, but exclude meals and incidental expenses. Pre-move house hunting trips and temporary living expenses are not deductible. Relocation Allowance: The negotiated lump-sum payment provided to and employee in lieu of reimbursement for authorized relocation expenses. Because of federal requirements, payment of relocation costs is restricted to payment of relocation allowances at authorized levels rather than reimbursement of moving and relocation expenses.
The relocation allowance shall not exceed the employee’s reasonably anticipated authorized relocation expenses. Requests for relocation allowances in excess of a one month salary require a written justification and advance approval of the Chancellor.
Payment of a relocation allowance is not mandatory. Such payments are a condition of employment subject to negotiation.
The provisions of the bargaining unit agreement shall take precedence over the regulation in application to members of such bargaining unit.
The direct payment for relocation, moving or similar costs is the sole responsibility of the employee, not the university. Charges for relocation expenses are not to be billed directly to the university.
Request for Payment
Relocation allowances may be paid prior to the respective individual commencing employment with the university or incurring relocation costs. To initiate a request, a hiring authority must submit a Relocation Allowance Request Form to General Accounting and Budget. A copy of an accepted appointment letter or other hire documents must be attached to the request form.