Relocation

At the discretion of the hiring unit and subject to budget availability, relocation payments may be offered to new faculty and staff. The employing unit determines the payment amount. This Operating Procedure establishes University procedures for relocation payments and addresses IRS reporting and tax withholding requirements.

This Operating Procedure applies to all University of Vermont faculty and staff responsible for authorizing or processing relocation payments.

None.

Relocation payments should be negotiated during the hiring process. The offer letter must:

• Specify the payment amount, and
• State that the payment is fully taxable as income and subject to state and federal income taxes and FICA.

The University has negotiated contracts with national moving companies, which can assist departments in estimating reasonable stipend amounts. Contact Purchasing Services for more information. However, UVM does not issue purchase orders for, or make direct payments to, moving companies on behalf of employees.

Employing Unit

1. Ensure the new hire’s offer letter includes the following:
   1. The amount of the Relocation Payment. 
   2. Language in the letter stating that the full amount of the payment is taxable and subject to federal and state income taxes and FICA. 
2. When the new hire information is in PeopleSoft, submit an electronic Additional Pay Form (eAPF), which will include the amount to be paid, and the chartstring to charge the expense. The required chartstring account code Is 57896. Use reason code Taxable Moving Reimbursement and earnings code 429-Taxable Moving Reimbursement.

Payroll and Tax Services

After receiving the eAPF from Human Resources, Payroll and Tax Services will process the payment on the first or second payroll after the eAPF is received. The payment will be included as taxable income on a Form W-2 for the year in which payment is made, regardless of the actual relocation date or when expenses were incurred.  

Payment of Interview Travel Expenses for Candidate 

Payment of a candidate’s travel expenses to attend an interview for prospective employment is not relocation. Such travel expenses are processed in accordance with the University’s Travel policy.

The University will not directly pay for, or reimburse travel (i.e., to secure housing) after an offer   letter has been tendered. If the hiring unit wishes to cover these costs, the amount should be reflected in the negotiated Relocation Payment stated in the offer letter.  

Research equipment/materials transferred from a new hire's former lab to a UVM lab shall be subject to University inventory control guidelines for tagging movable equipment. Because research equipment/materials are not household goods, the cost of transporting such items shall not be reimbursed or advanced as an employee relocation benefit. Rather, the transportation of such moveable equipment shall be contracted via a UVM purchase order through a commercial moving company.

Relocation payments being charged on sponsored projects must follow applicable policies of the sponsoring agency as well as the terms and conditions of the individual agreement as well as what the required documentation may be to substantiate. In addition, all federally funded projects - both directly funded and flow-through subrecipient agreements - must be in compliance with the Uniform Guidance at 2 CFR Part 200. Offer letters which contain relocation payments charged to sponsored projects must include direction to keep receipts, invoices, and other supporting documentation. Reimbursement will only be up to the substantiated amount. Relocation payments on sponsored projects, based on itemized receipts, are processed through Payroll Services as outlined above.

Training will be provided on an as-needed basis as determined by the Approval Authority or the Responsible Official.

Questions concerning the daily operational interpretation of this UOP should be directed to the following: