University of Oregon Fiscal Policy IV.04.05,4.a Moving Expenses & UO Departmental Fiscal Procedures
Newly hired University employees may be reimbursed for reasonable house hunting, moving, relocation expenses as approved by the hiring authority.
This page contains detailed information for Hiring Departments initiating Moving Expense payments to new employees. General information for new employees can be found at https://ba.uoregon.edu/content/movingrelocation-expenses
Standard Language in Offer Letter
The following standard language is required wording required within all University Offer Letters that include a Moving Expense Allowance, per University of Oregon Departmental Fiscal Procedures 188.8.131.52
"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."
Moving Expense Allowance Payroll Options
Each unit, if they elect to offer a Moving Expense Allowance, should select an option and indicate this in the standard language included in the offer letter. The Moving allowance includes expenses for House Hunting.
The Moving Allowance is available to new employees once their position has been set up in Payroll.
Determination of which Option is available to a new employee is dependent upon 1) the amount of their Gross Annual Wages, 2) Limits within the Options, and 3) whether the employee chooses to have a Moving Company paid directly.
Option 1: Expense Reimbursement. 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 (MCR STO). The cap includes house hunting expenses. This option allows for direct pay to a Moving Company. All documentation and receipts required to be kept with department Payroll records. See Department Fiscal Procedure 184.108.40.206.
Option 2: One-time Allowance Payment. 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 (PRF STO).
Exceptions to the maximum allowance cap 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 220.127.116.11.
The following are recommended (but not required) moving/relocation allowance amounts, based upon distance of move
- Moving/relocation reimbursements have tax implications. The recipient is ultimately responsible for his/her tax filing and any resulting tax liability.
As of January 1, 2018, the Tax Cut and Jobs Act made all moving/relocation expenses paid or reimbursed by the employer subject to payroll taxes until 12/31/2025. The applicable taxes will reduce the employee’s Moving Expense 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 2023 applicable percentage rates are Federal supplemental tax rate 22%, FICA rate 7.65%, State of Oregon supplemental rate 8%, Eugene Employee Payroll tax rate .44%, and the new 2023 Oregon Paid Family Leave tax rate is .60%. The total is 38.69%. (Example: Allowance is $10,000, net received is $6,131 ($10,000 less $3,869 payroll taxes).
- 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 Expense Allowance. The Moving company receipt to be kept with the employee's payroll records. Applicable Payroll taxes will still be withheld through Payroll.
- Direct payments to airlines or hotels for house hunting or moving expenses are no longer allowed.
Payroll Processing and Records Guidance
Relocation expenses are no longer reimbursed through Concur. Instead, the two Options available are, with some limitations, paid through Payroll. The Hiring department is responsible for process, review, and authorization of Moving Expense Allowances. Documentation is to be kept in the new Employee's Payroll records.
Option 1 Allowances –
If this is a reimbursement for expenses that receipts have been submitted for, a PRF (Payroll Request Form) is not necessary; only an MCR (manual check request), using the regular/primary position. Multiple reimbursements can be made, up to their total moving allowance, and may start as soon as they are set up in Payroll.
Option 2 Allowances-
If this is a one-time only payment allowance (receipts not required), then a PRF would need be submitted and routed through HR. No MCR would be necessary.
Departmental training is available, please contact Joy Germack at email@example.com before making a moving/relocation payment. One-on-one trainings on Teams or Zoom are available.
Contact Payroll Department for questions on how to use the Earn Code STO, PHAHOUR, the PRF Payroll Request form, and the MCR Manual Check Request form.
When relocation is required for a change in work location of an existing employee, it may be paid/reimbursed as approved by the hiring authority and in accordance with the University Fiscal Policy. Payment to Moving Companies is not an option for existing employees. See Existing employee required moving expenses procedure at Travel Procedure D.Persons Eligible for Travel-Expense Reimbursement  Employees
- Moving Company Payment Options
- Letter of Introduction Template New Version 02/03/23
- UO Fiscal Procedures, 2.2 Moving Expenses
- Suggested Reasonable Moving Expenses
If you have questions about the Moving Expenses Allowance policy, contact Joy Germack, Senior Tax Accountant/Analyst at firstname.lastname@example.org or 541-346-0782.
Last updated 02/03/23