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5:009 Moving Allowance

 

Austin Peay State
University
Moving Allowance


POLICIES
Issued:  February 2, 2017

Responsible Official:  Vice President for Finance and Administration

Responsible Office:  Human Resources
 

 


Policy Statement


It is the policy of Austin Peay State University to provide assistance to new employees relocating to begin work with the Unviersity.


Purpose


The purpose of this policy is to establish the processes and procedures for payment of APSU employee moving expenses.


Procedures



Moving Allowance
  1. 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. The contract for moving allowances should be executed at the time of employment.
  2. If the University recruits and hires more than one person from the same family, only one moving allowance is permitted.
  3. 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.
    1. 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.
    2. If the employee did not have a former workplace, the new workplace must be at least 50 miles from the employee’s former home.
  4. The distance between the two points is the shortest of the more commonly traveled routes between them.

Arranging for Moving
and Payment
  1. The moving allowance is paid directly to the employee, reported as taxable income, and is subject to all tax liability at the time of payment.
    1. The amount of the moving allowance will be included in boxes 1, 3, and 5 of the employee’s W-2.
  2. The employee will make all arrangements for the move without the involvement of the University.
  3. The employee does not submit moving expense receipts to the University, but is advised to keep them for personal tax return purposes.
    1. 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).
    2. This recovery is dependent on the IRS regulation in force at the time of payment.
    3. The employee receiving the moving allowance will be responsible for documenting expenses on their federal tax return required by IRS Publication 521 Moving Expenses.
  4. All moving allowances require approval from the President.
    1. For persons hired that require the President’s approval, approval of the moving allowance will be included in the hiring approval.

Other Provisions
  1. Moving allowances will be paid or reimbursed only after a contract is executed between the employee and the University.
  2. All payments must be made within twelve (12) months of the date employment begins for new employees or relocation occurs for relocated employees.
  3. The agreement on the amount of the moving allowance to be paid should be clearly understood in writing between the employee and the University.
  4. 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.
  5. 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.

Revision Dates


APSU Policy 5:009 - Issued: February 2, 2017


Subject Areas:

Academic Finance General Human
Resources 
Information
Technology 
Student
Affairs 
      X    

 


Approved


President: signature on file