For Moving and Relocation Stipend Payments made after January 1, 2019
The university may provide a moving and relocation stipend for a newly hired faculty or staff employee to move from their former residence to the new residence. No additional moving and relocation reimbursement payments of any kind will be processed by the university. No additional budget will be provided from the university to cover the cost of a relocation stipend and related fringe benefits.
Payments for moving and relocation stipends must be funded from the budget of the university department hiring the employee. The amount of the stipend is negotiable between the hiring department and it is subject to the unit’s budget availability. Stipends will be fully taxable income, per a provision in the Tax Cuts and Jobs Act, and will be limited to one per household.
Language specifying the amount, terms, and conditions for the moving and relocation stipend is under the University Relocation Stipend Agreement (pdf).
For an employee to be eligible to receive a moving and relocation stipend, the following eligibility criteria must apply:
- The distance between the employee’s new work location and the former residence must be 50 miles greater than the distance between the employee’s old location and the former residence;
- The employee must be hired into a full-time salaried position fort at least one year (twelve consecutive months) ; and
- The relocation must be at the university’s request, not for the convenience of the employee;
B. Processing Stipend Payments
All moving and relocation stipend payments will be made to the employee through the payroll system within 60 days of the employee’s first day of employment. Therefore, employees must be added to the payroll system before the moving and relocation stipend can be processed.
The moving and relocation stipend will be reported as taxable income and included on the employee's W-2 statement. Income tax will also be withheld on all payments. The tax amount withheld will be approximately 35.4 percent of the total taxable income. This is based on the following rates:
- 22.0 percent for Federal Income Taxes
- 5.75 percent for State Income Taxes
- 6.20 percent for Social Security
- 1.45 percent for FICA Medicare
C. Pay-Back Provision
In the event the Employee does not remain in the employment of the university as a full-time employee for the full twelve-month period, the Employee will repay the university the gross amount of the relocation stipend, including related payroll taxes withheld by the University amount to be repaid from salary or other payments due to the Employee upon or subsequent to separation.
For any other additional questions please refer to Policy Document (pdf).