As communicated in the February 2018 Newsletter, the University has adopted a moving allowance policy as a result of the Tax Cuts and Jobs Act that went into effect on January 1, 2018, eliminating the exclusion/deduction for qualified moving expenses.
Newly hired employees can elect the timing of the moving allowance payment. If the individual elects to receive the payment prior to the employment start date, the allowance payment will be processed through Accounts Payable using the Concur Invoice Payment Request. When submitting in Concur, the allowance should be charged to Moving Allowance – 78147, and a copy of the offer letter stating the amount of the moving allowance must be submitted as documentation as well as evidence that the offer has been accepted. No taxes will be withheld at the time of the payment, but all applicable taxes will be withheld from the employee’s payroll when active. Note that house-hunting trips will not be reimbursed separately and should be included as part of the moving allowance. Departments will need to communicate to the individual that his or her first paycheck(s) will have taxes withheld related to the moving allowance.
If individuals elect to receive the payment after the employment start date, the allowance will be processed through payroll as a one-time payment using an ePA on the supplemental payroll. For this option, applicable taxes will be withheld at the time of payment with no impact on subsequent paychecks. A copy of the offer letter and/or the Approval Request for Relocation Allowance form stating the amount of the moving allowance, must be submitted as documentation. Note the appointment PA must be received before any supplemental PAs will be paid.
Temporary Living Allowances will be processed through the payroll system as well using an EPA with applicable taxes withheld at the time of payment. This type of allowance will be processed as multiple payments on the regular monthly payroll schedule. A copy of the offer letter and/or the Approval Request for Relocation Allowance form that stipulates the amount and duration of the temporary housing allowance must be submitted.
As a reminder, the University will no longer pay moving companies directly or provide reimbursements to individuals for moving expenses. Newly hired individuals can use our contract vendors and benefit from our negotiated rates but will pay the vendor directly. For any moving expenses already incurred in 2018, please contact Accounts Payable to determine the payment options.
The official policy will be released in the coming weeks. Until the official policy is released, please refer to the Relocation Allowances page for information.