College of Liberal Arts

Faculty Moving and Relocation Expenses

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Effective Jan. 1, 2018 due to the passage of the Tax Cuts and Jobs Act, all expenses paid directly to an employee or to a third party to assist with moving personal items and relocation of the employee and family members are considered taxable. Departments may provide this benefit if approved by the dean or vice president, or their designee, in a formal offer letter or other form of written notice to the employee.

Additional information about moving and relocation expenses is available in the Handbook of Business Procedures, Part 9.1.11.


How it Works

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TENURED AND  TENURE-TRACK FACULTY HIRES MOVING AND RELOCATION EXPENSES POLICY

  • Tenured and Tenure-Track faculty hires in the College of Liberal Arts are eligible to receive College- funded compensation for the purpose of moving household goods and for reasonable expenses necessary for one or more trips to Austin, TX for personal relocation. Employer-provided payments for moving expenses are considered taxable income.
  • Compensation rates are calculated based on the faculty hire’s primary home address:
    • Continental U.S. Standard Rates:
      • Assistant and Associate Ranks: $6.00 per mile with $4,000 minimum.
      • Full Professor Rank: $7.00 per mile with $5,000 minimum.
    • AK/HI/US Territories/International moves are negotiated on an individual basis in consultation with, and with approval from, the Dean’s Office.
    • For dual-career hires where both faculty members are tenured/tenure-track in the College of Liberal Arts, compensation is calculated at 1.5X the rate of the highest-ranking faculty member. Funds are split equally between each hire.
  • Departments may choose  to provide additional compensation above the standard rates using departmental funds. The Dean’s Office does not provide additional compensation above the standard rates.
  • Faculty hires who elect to rescind their position after accepting compensation for moving and relocation expenses are obligated to repay the University (gross payment plus fringe benefits).

PROCESS

  • Faculty hires are notified of compensation for moving and relocation expenses in their offer letters.
  • Faculty hires are compensated via a lump-sum payment. Employer-provided payments for moving expenses are considered taxable income. Taxes will be withheld from the faculty members’ first paycheck and not the moving and relocation lump-sum payment.
  • Faculty hires must complete all required paperwork with the University (Payee Information Form). The department will process the payment with a VP2 (using Object Code 1280). A copy of the offer letter is to be included with the voucher paperwork.
  • The College of Liberal Arts finance office will transfer approved moving allocations to each department. Transfers will occur on:
    • June 1: Fall semester start dates
    • November 1: Spring semester start dates
  • The College of Liberal Arts finance office will provide a separate sub account for each faculty hire. Departments will use the account provided to process lump-sum payment to the faculty hire. The COLA finance office will later reconcile the account to fund actual fringe costs.

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Last Modified: 05 December 2019