Changes to Relocation

The Tax Cuts and Jobs Act eliminates the deduction for qualified moving expenses effective January 1, 2018. All moving expenses, whether previously deductible or not, are now taxable to employees if reimbursed or paid on their behalf.

Due to this federal law change, the University will adopt a moving allowance policy. If a department wishes to pay an amount towards relocation costs for a new hire, they will do so through a moving allowance. The moving allowance will be paid through Payroll, subject to federal, state, and FICA tax withholdings, after the new employee comes on board.

If desired, departments may contact the UA Purchasing Department to obtain the name of the moving company under contract. When using a moving company under University contract, the employee will pay the moving company directly.

Details on the new policy and procedures will be released in the coming weeks.