Handbook of Operating Procedures > Series 400 Budget, Finance and Operations > 4.6.9 Relocation Expense Payment

4.6.9 Relocation Expense Payment

A. Purpose

To set forth guidelines and procedures to be followed pursuant to H.R. 1-115th Congress (Tax Cuts and Jobs Act / 2017-2018) in regards to the relocation expenses offered to employees by UTT.

B. Persons Affected

This policy covers all employees of The University of Texas at Tyler and The University of Texas Health Science Center at Tyler (collectively, the “University”).

C. Definitions

N/A

D. Policy

A department may determine that it is reasonable and necessary to pay the relocation expenses of an employee at a director level or above. The respective Senior or Executive Vice President and the Vice President / Chief Human Resources Officer must approve the relocation expense, and funds must be available in the fund designated to be charged. An employee that terminates employment on a voluntary basis before the end of six (6) months of active employment status with UTT must repay all relocation funds. Funds may not be issued until the recipient is an active employee.

1. Funding Moving / Relocation Expenses
   1. The payment of relocation expenses may not be paid with State appropriated funds (reference Texas Government Code § 2113.204); however, a department may use local (non-state appropriated) institutional funds. The need for relocation expense payment must be business related and must be reasonably substantiated as a direct need or a specific benefit for recruitment prior to an offer being extended to a prospective employee.
   2.  Pursuant to H.R. 1-115th Congress (Tax Cuts and Jobs Act / 2017-2018), moving expenses and housing allowances will be paid to employees as taxable income.
   3.  Relocation funds offered to employees will be at the gross amount, considered taxable income subject to applicable withholdings, resulting in the net amount paid being less than the gross amount. Funds issued to the employee will not be grossed up.
2. Criteria and Limits 

   Relocation expense payment amounts may be paid up to an amount not to exceed 1/12th of the employee's annual salary (any amount exceeding $15,000 USD must have prior approval from the respective Senior or Executive Vice President and the Vice President / Chief Human Resources Officer, and President. Relocation expense payments may be offered as a flat amount for the employee to use at their discretion; receipts may not be reviewed by UTT. Expense payment amounts for Faculty shall be approved in advance by the respective Senior or Executive Vice President. Expense amounts for administrative and professional staff positions shall be approved in advance by the respective Senior or Executive Vice President and the Vice President / Chief Human Resources Officer.

   Where applicable and necessary, a department may offer a housing allowance up to ninety (90) days not to exceed $1,000 per thirty (30) days. Housing allowance amounts for any employee/applicant shall be approved in advance by the respective Senior or Executive Vice President and the Vice President / Chief Human Resources Officer.

E. Procedures

1. Prior to an amount being offered to an employee, and before a Relocation Expense Repayment Agreement being completed, the department must establish written documentation stating the agreed amount of relocation expense with approval provided by the respective Senior or Executive Vice President (and Vice President / Chief Human Resources Officer where applicable). Documentation can be in the form of a memo or an email.
   1. This documentation will then be forwarded to Human Resources so that the Relocation Expense Payment amount can be included on the prospective employee's offer letter.
2. The department shall submit a Personnel Action Form and the approval documentation for the Relocation Expense Payment to be paid to the employee once in an active status with UTT.

F. References

Texas Government Code § 2113.204, H.R. 1-115th Congress (Tax Cuts and Jobs Act / 2017-2018)