Latest information on operational modifications for fall 2021 Roadrunner Roadmap

Relocation Expense

Effective: 03/25/16 Approved By: Sr. Associate Vice President for Financial Affairs and Deputy CFO
Revised: 06/24/19

Purpose/Scope

To provide an overview of procedures relating to employee relocation expenses.

Authority

irs.15e.pub

University Guidelines

Table of Contents
  1. Overview
  2. Approving and Recording Relocation Expense Payments
  3. Payment Methods
  4. Taxability

A. Overview

In situations where it is in the best interest of The University of Texas at San Antonio (UTSA) to provide a payment for relocation expenses, that payment is required to be:
  • 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.

B. Approving and Recording Relocation Expense Payments

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.

C. Payment Method

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.

D. Taxability

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.

Related Forms

None at this time.

Revision History

Date Description
06/24/19 Updates throughout operational guideline for current procedures
03/25/16 FMOG Created.