|Effective:||03/25/16||Approved By: Senior Associate Vice President for Financial Affairs and Chief Financial Officer|
For Assistance Contact: Director, Payroll Management Services
To provide an overview of procedures relating to employee relocation expenses.
Table of Contents
- Reasonable and necessary
- Appropriately approved and recorded
The information in this guideline is provided as a guide for understanding UTSA procedures for processing relocation expense payments. It is not intended to be tax advice, nor does it guarantee the tax consequences of any payment to an employee. UTSA's Payroll Services Office (Payroll) is unable to provide tax advice.
Relocation expense payments may only be made following the approval of the appropriate Vice President, Provost or the President, and must be documented in the employment offer letter.
The hiring department should create an eForm in PeopleSoft and attach a copy of the employment offer letter.
The department may also need to create a Department Budget Table (DBT) for the funding source. For assistance with the DBT, departments can contact Budget and Financial Planning.
Relocation expense payments are made in one lump sum in the new employee's paycheck. If paid in the employee's first paycheck, departments must submit and approve an eForm (along with required documentation) by the 15 th calendar day of the month prior to the new employee's start date. Departments should contact Payroll if alternative arrangements are needed.
Relocation payments generally will not be paid after the first 12 months of the employee's start date.
In accordance with legislation, relocation expense payments are included in wages and are subject to employment taxes, including the supplemental wage income tax withholding (currently 22%) and other payroll/wage related taxes.
None at this time.
|06/24/19||Updates throughout operational guideline for current procedures|