decorative-icon Moving/Relocation Expenses

University of Oregon Fiscal Policy IV.04.05,4.a Moving Expenses & UO Departmental Fiscal Procedures, Updated May, 2021

  • New university employees may be reimbursed for reasonable house hunting, moving, relocation expenses as approved by the hiring authority. 
  • Certain travel and moving/relocation reimbursements may have income tax implications. The recipient is ultimately responsible for his/her tax filing and any resulting tax liability.
  • Relocation expenses are no longer reimbursed through Concur.  Instead there are now two Options available that, with some limitations, are paid through Payroll using the Earn Code STO on a Payroll Request Form (PRF).
  • The total amount of Moving Expense Allowance, including house hunting expenses, that is available to a new employee must appear within their signed offer letter or term sheet.
  • Determination of which Option is available to a new employee is dependent on 1) the amount of their Gross Annual Wages, 2) Limits within the Options, 3) whether or not the 'required wording' appears on the Offer Letter/Term Sheet signed by the new employee, and 4) whether the employee chooses to have a Moving Company paid directly.

Departmental training is available, please contact Joy Germack at jgermack@uoregon.edu before making a payment under this new Policy and procedures. One-on-One trainings on Teams or Zoom are available. 

Moving Allowance Payroll Option 1: Capped at 10% of new employee's annual income or $15,000, whichever is less; and requires department to compile and keep on record supporting receipts or appropriate documentation. (STO). The Cap includes house hunting expenses. All documentation and receipts required to be kept with department Payroll records. See Department Fiscal Procedure 2.2.3.3.

Moving Allowance One Time Payroll Option 2: Capped at 7.5% of new employee's annual income or $11,250, whichever is less; does not allow for any direct payments to third parties; and does not require receipts.(STO).  The Cap includes house hunting expenses. This option requires Standard Language wording in the offer letter/term sheet. 

Standard Language - required wording Option 1- within Offer letter or Term sheet: -University of Oregon Departmental Fiscal Procedures 2.2.1.7

"Subject to UO’s policies and procedures regarding reimbursable moving/relocation expenses, we will also make available up to [$X,000] for eligible moving expenses. The procedures for claiming moving/relocation expense reimbursements can be found on the UO Business Office Moving / Relocation Expense page: http://ba.uoregon.edu/content/movingrelocation-expenses. Please note that reimbursements for moving expenses paid to you through university payroll will be subject to federal and state taxes. Accordingly, I encourage you to speak with your own tax advisor before making your moving arrangements. Please also consult your unit for information regarding movers who work with the university and with whom the university has direct billing arrangements. If you voluntarily terminate employment at UO within one (1) year of your official hire date, all amounts paid for your moving/relocation shall be reimbursed by you to the UO unless an alternative arrangement is made in writing."

  • Option One requires the collection of receipts and documents to be kept in the New Employee's Payroll Files kept by the Hiring Department, allows for direct pay to a Moving Company.  And the "Standard Language" is optional. 
  • Option Two requires that the 'Standard Language" appears on the Offer letter or term sheet, does not allow for direct payments to a Moving company, and does not require receipts.
  • Direct payments to Moving companies (Option One only) - use account code 10780 & include the name and Banner ID of the new employee in the Banner text. Cannot exceed the approved Moving Allowance. The Moving company receipt to be kept with the employee's payroll records.
  • Direct payments to airlines or hotels for house hunting or moving expenses are no longer allowed. 
  • The Hiring department will process, review, and authorize Moving Expense Allowances. Documentation is to be kept in the new Employee's Payroll records.
  • As of January 1, 2018, the Tax Cut and Jobs Act made all moving/relocation allowances subject to payroll taxes until 12/31/2025. The applicable taxes will reduce the employee’s moving allowance, or net income if a third party is paid directly, at the supplemental tax rate and their share of FICA (Social Security & Medicare) tax. The applicable percentages at the 2021 rates are Federal supplemental tax rate 22%, FICA rate 7.65%, and State of Oregon supplemental rate 8% for a total of 37.65%.   Please have your new employee plan accordingly.
  • Exception to Exceed Option 1 or 2 Amount Limitation.  Exceptions to the maximum allowance limit may be granted by the Provost (for academic appointments), the Vice President for Research and
    Innovation (for research appointments), or the Vice President for Finance and Administration (for administrative appointments) or designees. Fiscal Procedure 2.2.3.3.
  • How to pay through Payroll

                       Option 1:If this is a reimbursement for expenses that receipts have been submitted for, a PRF is not necessary; only an MCR, using the regular/primary position.  It would probably be most appropriate to use the pay month where the hire began.

                       Option 2: If this is a one-time allowance (receipts not required), then a PRF would need be submitted and routed through HR.  No MCR would be necessary.

                       Contact Payroll Departments for questions on how to use the Earn Code STO, the PRF Payroll Request form, and the MCR Manual Check Request form. 

Additional Information 

 

If you have questions about the new moving expenses policy, contact Joy Germack, Senior Tax Accountant/Analyst at jgermack@uoregon.edu or 541-346-0782.

Last updated 10/12/2021