NEW! Under the Tax Cuts and Jobs Act of 2017, the personal deduction for relocation expenses and the exclusion from income of the employer-paid relocation expenses are suspended from January 1, 2018 through December 31, 2025. As result, all moving expenses incurred on or after January 1,2018, whether reimbursed to an individual or paid to a vendor on behalf of an individual, are taxable income to the individual.
A department may determine that it is reasonable and necessary to pay the relocation expenses of an employee. The appropriate Vice President must approve the reimbursement and funds must be available in the account charged.
The reimbursement of relocation expenses may not be paid with State appropriated funds (reference General Appropriations Act, 74th Legislature, HB1, Article 9, Section 18). The department will be required to use local (non-state appropriated) funds. The move must be business related and expenses must be substantiated as stated by the accountable plan rules. Reimbursement will not be allowed for amounts in excess of actual expenses incurred.
Reimbursement Criteria and Limits
Relocation expenses may be reimbursed to faculty or administrative and professional staff positions for a total amount approved not to exceed actual expenses as determined by each individual department.
The department must include the amount of reimbursable moving expenses within the employees Official Offer Letter. The Offer Letter should state the agreed maximum amount for relocation expense reimbursement and be signed by the appropriate Vice President.
The department submits a Moving Expense Reimbursement Form to the Payroll Office. The moving expense reimbursement form must include a copy of the official Offer Letter given to the employee, original receipts, the employee's signature and the authorized signature for the account to be charged.
Moving Vendor Direct Payment Option
A department may choose to pay for an employee's moving expenses (services performed by a moving company) by direct vendor payment. The University utilizes a moving contract through the E & I Cooperative and employees are encouraged to obtain quotes from Allied and United Van Lines. Additional insurance beyond the normal liability of the moving company will not be provided.
The employee should work with the hiring department in submitting the moving company’s payment information at least two weeks prior to the intended move. A purchase order will be submitted to the firm indicating the University’s agreement to pay up to the maximum authorized amount. When the move is complete, the employee will be responsible for any expenses in excess of the stipulated maximum allowance. The moving company will then invoice the University directly for the maximum authorized dollar amount or the total dollar amount if less than the maximum authorized. The University assumes no responsibility for the household goods, personal effects, or property of the employee. In the event a dispute arises between the moving company and the employee, responsibility for resolving the matter rests with the employee.
The department requesting reimbursement should include the Purchase Order number or Department Requisition Number on the Moving Expense Reimbursement Form.