5:009 Moving Allowance
|Austin Peay State
||November 17, 2017
||Vice President for Finance and Administration
It is the policy of Austin Peay State University to provide assistance to new employees
relocating to begin work with the University.
The purpose of this policy is to establish the processes and procedures for payment
of APSU employee moving expenses.
- Newly hired full-time employees who relocate from their former residence to a new
residence may be issued a one-time moving allowance, if deemed appropriate by the
President or designee (See APSU Policy 4:002). The contract for moving allowances should be executed at the time of employment.
- If the University recruits and hires more than one person from the same family, only
one moving allowance is permitted.
- To be eligible to receive a moving allowance and to comply with the current guidelines
published by the Internal Revenue Service (IRS), the move must meet the minimum IRS
distance test of 50 miles from the location of the former residence.
- For example, if the location of the former workplace was 3 miles from the employee’s
former home, the location of the employee’s new workplace must be at least 53 miles
from the employee’s former home.
- If the employee did not have a former workplace, the new workplace must be at least 50
miles from the employee’s former home.
- The distance between the two points is the shortest of the more commonly traveled
routes between them.
Arranging for Moving
- The moving allowance can be paid:
- directly to the employee, reported as taxable income, and is subject to all tax liability
at the time of payment. (The amount of the moving allowance will be included in boxes
1, 3, and 5 of the employee’s W-2.); or
- a reimbursement of the actual cost spent by the employee.
- The employee will make all arrangements for the move without the involvement of the
- The employee must submit moving expense receipts to the University if being reimbursed,
but is advised to keep them for personal tax return purposes if allowance is paid
directly to the employee.
- The employee may be able to recover the income tax withheld by filing the appropriate
IRS forms with their tax return (IRS Form 3903 Moving Expenses).
- This recovery is dependent on the IRS regulation in force at the time of payment.
- The employee receiving the moving allowance will be responsible for documenting expenses
on their federal tax return required by IRS Publication 521 Moving Expenses.
- Moving allowances will be paid or reimbursed only after a contract is executed between
the employee and the University.
- All payments must be made within twelve (12) months of the date regular, full/part-time
employment begins for new employees or relocation occurs for relocated employees.
- The agreement on the amount of the moving allowance to be paid should be clearly understood
in writing between the employee and the University.
- The University shall assume no liability whatsoever for personal injuries, property
damages, or other losses which may be sustained in connection with any moves undertaken
pursuant to these regulations.
- In consideration for the University paying a moving allowance, the employee agrees
to remain employed by the University for a period of at least one year. For faculty
appointed on an academic basis, one year is defined as one regular academic session
(Fall and Spring Semesters, nine months). For all other annual faculty and employees,
one year is defined as twelve months. Should the employee voluntarily leave prior
to completion of that year, the employee will be liable to the University for repayment
of any moving allowance which the University has paid (to or on behalf of the employee),
together with all payroll taxes withheld by the University in connection with such
allowance. If the employee is terminated for cause during the first year, the University
may seek repayment of any moving allowance.
APSU Policy 5:009 - Rev.: November 17, 2017
APSU Policy 5:009 - Issued: February 2, 2017
President: signature on file