A relocation allowance is a negotiated lump sum payment made to an employee in lieu of reimbursement for moving expenses. Classified staff residing in Alaska, faculty members and exempt staff under contract for full-time employment for the equivalent of one year or longer are eligible to receive Relocation Allowances.
Qualified Relocation Expenses: Authorized relocation expenses are all costs associated with moving to a new place of employment which are considered deductible under IRS regulations. The IRS limits deductible moving expenses to the cost of moving household items and personal effects of the employee, their dependents and their travel costs. IRS approved travel costs include lodging but do not include meals and incidental expenses. The cost of pre-move house hunting trips, temporary living expenses and the purchase, sale or lease of a residence are not deductible.
Requesting Payment: The relocation check is paid directly to the employee during his or her first full month of employment. The employee is responsible for paying all associated moving costs. The department hiring the new employee must fill out the Relocation Allowance Request form, obtain signatures of the employee, hiring authority and budget authority. Relocations are processed as quickly as possible after receipt but may take up to a week to process depending on if additional signatures are required after receipt. The relocation form can be found at the following link: http://www.alaska.edu/files/hr/Relocation_Allowance_Form.pdf.
Eligibility: Relocation allowances will be paid for regular, full-time employees who will be continuing in the position after one year. If the person is hired for a shorter period than one year and a relocation payment is requested, an exception to policy will have to be requested from the Vice President's office, in advance of payment. This can be done after the paperwork is received in the processing office. If the relocation is for a classified staff member moving from out-of-state, an exception to policy is also required as only in-state classified staff are eligible. This too is obtained by the processing office after the paperwork has been received.
Estimated Moving Expenses: While the university doesn't require a moving estimate, if the amount requested is more than one month's salary, the amount requested should be justified. The relocation amount will be added to the employee's payroll record as income. It will be reported on the W-2 statement for the tax year. It is then up to the employee to deduct whatever they feel qualifies on their taxes. Enter the amount the employee has estimated it will cost to move in the "est. authorized relocation expenses" space.