Employee Moving and Relocation
Offer and Employment Accepted
Offer letter may contain a moving allowance. If it does, then the department business administrator or designee should send the prospective employee a copy of SAM 03.A.13 https://www.uhsystem.edu/resources/compliance-ethics/_docs/sam/03/3a13.pdf containing moving company information. The employee can choose their mover based upon this information.
Prospective Employee Choice of Mover
The new hire has the option of paying for their move and seeking reimbursement (while complying with SAM above) or requesting a purchase order for direct payment by the university. Any amount in excess of their relocation allowance is payable directly by the employee.
Taxability
Whether the employee is reimbursed or the university pays the moving company directly the relocation cost is deemed taxable income to the employee.
IRS Mileage Rates for Moving and Relocation
These rates are subject to change per IRS Standard Mileage Rates. For more information, please visit the IRS website at – https://www.irs.gov/tax-professionals/standard-mileage-rates
Office of Management and Budget Guidance
A federal document that establishes principles for determining relocation costs of employees with educational institutions. https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRed1f39f9b3d4e72/section-200.464
Other Cost
Additional relocation costs such as house-hunting, temporary lodging and storage are reimbursable to the employee by Accounts Payable, following university guidelines.
Relocation Timing
Relocation is defined as moving expenses while in transit from the employee's former location to their new location, up to the first day of employment at UHD.
Documentation
Receipts are required for all expense reimbursement requests in addition to, an addendum A https://www.uhd.edu/documents/administration/business-affairs/accounts-payable/adendum-a-moving-relocation-expenses.pdf and Exhibit B form https://uhdowntown.sharepoint.com/sites/DocuSignatUHD
Table of Allowable Expenses
Allowable Relocation Expenses (pdf.)
Suggested Accounts
- Direct Payment to Moving Company (54806)
- House-hunting (56122)
- Other Relocation Expenses (56121)
