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None.

If relocation benefits are to be extended at the discretion of the hiring unit then, Relocation Stipends should be negotiated with the new faculty or staff member during the hiring process. Effective January 1, 2018, the Federal Tax Cut and Jobs Act requires that all payments made to employees are taxable and subject to state and federal income tax and FICA. The letter of offer should specify the stipend amount and that the full amount of the stipend is taxable and subject to state and federal income taxes and Federal Insurance Contributions Act (FICA). It is important to provide the new hire with the University’s relocation procedures, and to inform the new employee that the stipend is taxable, and will be included in taxable earnings, and is subject to applicable tax withholding.

NOTE: The University has access to contracts with national moving companies. Contact Purchasing Services for further information. These contracts can be used as a tool in aiding the hiring department when determining the amount of the relocation stipend. The University will not issue purchase orders or pay moving companies directly on behalf of the incoming employee.

Employing Unit

1. Ensure the new hire’s letter of offer includes the following:
   • The amount of the negotiated Relocation Stipend clearly stated. 
   • Language in the letter stating that the full amount of the stipend is taxable and subject to federal and state income taxes and FICA. 
2. When the new hire information is in PeopleSoft, submit an electronic Additional Pay Form (eAPF), which will include the amount to be paid, and the chartstring to charge the expense. The required chartstring account code Is 57896. Use reason code Taxable Moving Reimbursement and earnings code 429-Taxable Moving Reimbursement.

Payroll and Tax Services

Upon receipt of the Additional Pay Form (APF) from Human Resource Services, Payroll and Tax Services will process the documents to pay on the first or second payroll after the employee has been entered into the PeopleSoft HCM system. 

Payment of Interview Travel Expenses for Candidate 

Payment of a candidate’s travel expenses to attend an interview for prospective employment is not relocation. Such travel expenses are processed in accordance with the University’s Travel policy.

Payment of a Relocation Stipend is taxable, and will be included as taxable income with all the applicable federal and state taxes withheld. Relocation Stipends will be included on a Form W-2 in the year paid, regardless of the actual relocation date or when expenses were incurred.

Research equipment/materials transferred from a new hire’s former lab to a ¶¶Òõ̽̽ lab shall be subject to University inventory control guidelines for tagging moveable equipment. Because research equipment/materials are not household goods, the cost of transporting such items shall not be reimbursed or advanced as an employee relocation benefit. Rather, the transportation of such moveable equipment shall be contracted via a purchase order through a commercial moving.

Relocation stipends being charged on sponsored projects must follow applicable policies of the sponsoring agency as well as the terms and conditions of the individual agreement as well as what the required documentation may be to substantiate. In addition, all federally funded projects – both directly funded and flow-through subrecipient agreements – must be in compliance with the Uniform Guidance at . Offer letters which contain relocation stipends charged to sponsored projects must include direction to keep receipts, invoices, and other supporting documentation. Reimbursement will only be up to the substantiated amount. Relocation stipends on sponsored projects, based on itemized receipts, are processed through Payroll Services. 

Training will be provided on an as-needed basis as determined by the Approval Authority or the Responsible Official.