Policies & Procedures

Administrative Accounting

Moving Allowance Policy - 5G2

1. Purpose of Policy and Overview
   
   1. Purpose: This policy is to provide a framework for offering and providing moving allowances to employee candidates who reside outside the area and are relocating to the area due to the acceptance of employment at SIUE. The policy addresses eligibility, the process and parameters for determining the amount of the allowance, the taxability to employees, and detailed procedures to be followed.
      
      
   2. Summary: In accordance with this policy, new employees may be offered a moving allowance in their official offer letter using approved language. Employees will receive their approved allowance upon certifying they have relocated to the area by providing a Certification of Relocation form to the Hiring Department for their review and processing. The employee is not required to provide documentation of the amount of relocation costs incurred such as receipts or invoices. The employee shall not receive the moving allowance if the employee does not relocate to the area and certify such on the certification form.
      
      
   3. Responsibility: Administrative Accounting in conjunction with the Office of Human Resources should review this policy on an annual basis to determine if any modifications are necessary or recommended. For any general moving allowance questions, departments or affected employees may contact the SIUE Accounts Payable department at 618-650-2585, or by email at ap@lists.siue.edu
2. Eligibility and Offer Letter for Moving Allowance
   
   
   1. Moving allowances may be offered when it is in the best interests of the University to do so for the Chancellor, Vice Chancellors, Deans, Faculty, Athletic Director, Associate Athletic Director, and other positions within one reporting line of the Chancellor. Exceptions must be approved by the applicable Vice Chancellor or their designee, or the Chancellor or designee for positions reporting to the Chancellor.
      
      
   2. The hiring department should work with the Office of Human Resources, and the applicable Vice Chancellor area to ensure the process is appropriate and properly approved.  The hiring department should use the approved standard moving allowance language in the offer letter of employment. The moving allowance section should include at a minimum:
      
      
      1. The amount of the moving allowance.
      2. Disclosure that moving allowance will be reported as taxable earnings on the employee W-2.
      3. Disclosure that the moving allowance will be provided after the employee relocates and provides a Certification of Relocation form.
      4. Repayment agreement terms (see Repayment Agreement section below).
3. Amount Determination and Taxability
   
   
   1. The amount should be determined by the hiring department responsible for hiring the new employee in conjunction with the applicable Vice Chancellor area to ensure the amount was established using a reasonable and consistent method.  The total amount of moving allowance may not exceed $15,000 without prior approval of the applicable Vice Chancellor, or the Chancellor for positions reporting to the Chancellor.
      
      
   2. In determining the amount, the hiring department should estimate the amount of expenses that may be incurred by the new employee to relocate to a location near SIUE from his or her previous location. Moving allowances should not under any circumstances be used to provide a source of compensation to the new employee beyond what is reasonably estimated for the actual moving expenses the employee will expend. The hiring department should retain all records of amount determination and rationale for a minimum of three years and these records must be made available if necessary for internal audit or other authorized review.
      
      
   3. Taxability: All payments for moving allowances are considered taxable wages and are subject to tax withholding. Under current IRS regulations, eligibility for deducting moving expenses is extremely limited, however employees should consult a tax advisor or visit the IRS website to address their specific circumstances.
4. Repayment Agreement
   
   
   1. The offer letter will include a provision for repayment of the moving allowance if the allowance is $5,000 or greater.  In this circumstance, the offer letter should state that 100% of the moving allowance must be reimbursed to the University if the employee voluntary leaves SIUE employment within 24 months.
      
      
   2. Exceptions to this policy must be approved by the Chancellor or applicable Vice Chancellor but will be limited to involuntary separation, disability, or other hardships.
5. Procedures
   
   
   1. The hiring department determines eligibility and the appropriate amount of the moving allowance. Any exceptions will be reviewed and approved according to policy.
      
      
   2. The hiring department shall retain all records related to determination and approval of amount for three years.
      
      
   3. The offer letter, including the approved standard language as discussed in Section II.B above addressing the moving allowance, is distributed to the candidate for signature according to normal employment procedures in place according to the Office of Human Resources.
      
      
   4. The hiring department submits the signed offer letter to Payroll/HR as a notification of an approved offer and agreement to the repayment terms.
      
      
   5. Candidate should complete the Certification of Relocation form and submit it to the hiring department as soon as possible after candidate relocates and expenses have been incurred.
      
      
   6. The hiring department provides the ‘Certification of Relocation/Moving Allowance’ form to HR/Payroll.
      
      
   7. The moving allowance should be processed as taxable earnings by Human Resources. The moving allowance is not subject to State University Retirement System withholdings.
      
      
   8. For purposes of determining if repayment is applicable, an evaluation should be conducted upon employee separation by the hiring department. This process should be included by the hiring department as part of their normal procedures. This evaluation will also be included as an item on the Office of Human Resources’ Departing Employee Checklist form.

Approved by Chancellor effective 3/4/24
This policy was issued on March 11, 2024.
Document Reference: 5G2
Origin: OC 3/4/24