________________________________________________________________________________
All policies are subject to amendment. Please refer to the Rutgers University Policy Library website
(policies.rutgers.edu) for the official, most recent version.
Page 1 of 3
UNIVERSITY POLICY
1. Po
licy Statement
It is
the policy of Rutgers University (the “University”) to provide reasonable, necessary, and
appropriate “relocation expenses” (as defined below) for new employees.
It is the responsibility of each department to ensure that any covered expenses qualify as relocation
expenses and to bear such relocation expenses within its budget.
2. Re
ason for Policy
To pr
ovide guidance on the payment of relocation expenses for new employees.
3. Wh
o Should Read This Policy
All members of the University community involved in recruiting and hiring new employees.
4. Resources
Pr
ocedures to implement this policy are posted on the following websites:
Office of the University Controller:
University Tax Department (“Tax”): Procedure for Reimbursement of Relocation Expenses
Uni
versity Payroll Services (“Payroll”):
Taxable Moving Expense Reimbursement Form – Fillable PDF
Version
Uni
versity Procurement Services (“Procurement”):
https://procurementservices.rutgers.edu/process-
employee-relocation-reimbursement
Policy
Name:
Employee Relocation Expense Reimbursement
Section #:
40.2.22
Section Title:
Fiscal Management
Formerly
Book:
6.1.13
Approval
Authority:
Executive Vice President for
Finance and Administration
and University Treasurer
Adopted:
1988
Reviewed:
08/27/2018
Responsible
Executive:
Vice President for Finance
and Budget
Revised:
09/29/2000; 04/04/2004; 05/02/2005;
08/24/2006; 07/24/2007; 04/2008;
10/01/2013; 10/23/2013; 08/27/2018
Responsible
Office:
University Controller’s Office
(Tax Department & Payroll
Services) and University
Procurement Services
Contact:
University Controller’s Office:
Tax Dept.: 848-445-2054
Payroll Services: 848-445-2113
University Procurement: 848-445-4375
________________________________________________________________________________
All policies are subject to amendment. Please refer to the Rutgers University Policy Library website
(policies.rutgers.edu) for the official, most recent version.
Page 2 of 3
5. Definitions
The term relocation expenses means the reasonable and actual costs incurred for (1) moving
personal household effects to a location within proximity to the campuses of the University;
(2) travel expenses to relocate the new employee, the new employee’s spouse, and the new
employee’s dependent children to a new place of residence within proximity of the campuses of the
University; (3) moving laboratory/office equipment to a location that is a University office, laboratory,
or place of business; (4) the cost of short-term storage of household effects; and (5) shipment of
automobile(s) to the employee’s new residence within proximity to the campuses of the University.
Actual costs are monies expended to compensate for hired labor and equipment to load, move, and
unload tangible property.
Examples of such costs include the rental of trucks, trailers, moving equipment, or other expenses
directly related to the relocation. Relocation Expenses do not include compensation for labor of a
new employee or a new employee’s spouse/dependents. Relocation Expenses must be supported
by original receipts.
6. The Policy
The University may provide relocation expenses for new employees. At the time an offer is
extended to a prospective employee, the hiring department may elect to directly pay for or
reimburse that new employee’s relocation expenses. The decision of whether to cover relocation
expenses and the extent to which such relocation expenses will be covered should be guided, at a
minimum, by the following criteria:
• The hiring department’s access to budgetary resources;
• The total estimated relocation expenses;
• The benefits that accrue to the University and the hiring department as a
result of the new employee; and
• The nature of the position being filled by the new employee.
The hiring department must cover all approved relocation expenses within such department’s own
budget. It is the hiring department’s responsibility to ensure that all costs to be borne by its budget
qualify as relocation expenses.
A. Payment or Reimbursement of Relocation Expenses
Relocation expenses may be paid directly by the University through Procurement.
Procurement, upon notification by the hiring department, will coordinate with the new employee
to assist in the selection of a University approved commercial moving company to perform the
move and complete the necessary billing procedures. The hiring department must submit a
purchase requisition to Procurement for approval. Upon approval, Procurement will forward the
purchase order to the selected moving company.
The hiring department may permit a new employee to make personal relocation arrangements
with subsequent reimbursement. All expenses submitted for reimbursement must continue to
fall within the definition of Relocation Expenses set forth in section 5 of this Policy. Estimates
are not required for self-moves.
B. Travel Expenses
Relocation expenses may include travel expenses of the new employee and such employee’s
spouse and dependent children if such expenses are associated with their relocation. Such
travel expenses may include the (1) cost of meals and accommodations required in transit, and
(2) cost of travel in advance of the relocation for the sole purpose of searching for a new
________________________________________________________________________________
All policies are subject to amendment. Please refer to the Rutgers University Policy Library website
(policies.rutgers.edu) for the official, most recent version.
Page 3 of 3
residence within proximity to the campuses of the University. In order to qualify as reasonable,
such travel expenses must not exceed the lowest logical coach class airfare by the most direct
route from the new employee’s place of current residence to the vicinity of the University’s
campuses. Departments are expected to strongly encourage travelers to use one of the
University’s preferred travel agencies to book their arrangements. Users are referred to the
travel website at
https://procurementservices.rutgers.edu/travel.
7. Taxation of Relocation Expenses
All relocation expenses (except the expenses of moving laboratory equipment or office equipment
from a previous office to a University office), incurred during the calendar years 2018 through
2025, constitute taxable income to the employee pursuant to the enactment of the
Tax Cut and
Jobs Act of 2017 (Pub. L. 115-97). Previously, Federal law drew a distinction between “qualified”
moving expenses and other expenses. “Qualified” moving expenses could be paid or reimbursed
on a non-taxable basis. That is no longer the case for calendar years 2018 through 2025. All
relocation expenses must be included in the employee’s taxable income and are subject to all
applicable withholding taxes.
The hiring department, in its discretion and subject to the availability of funds, may provide a
gross-up of the reimbursement to cover Federal income taxes incurred for relocation expenses
paid by the University.
8. Questions and Assistance
The following offices are available for further information and assistance on this matter:
Telephone
Payroll Services
848-445-2113
Procurement
Services
848-445-4375
Tax Department
848-445-2054
