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Business and Financial Policies and Procedures

8.11.1 One-Time Moving Payment to the Employee

Policy Statement

Units of the University of Illinois System may provide a one-time moving payment to eligible employees for the purpose of supporting the relocation process, with the option to process direct payments to system-contracted moving vendors. The cumulative payments may not exceed $15,000 without prior approval from the chancellor, vice chancellor for health affairs, provost, or their delegate. An individual university or the System Offices may require additional levels of approval, or restrictions on the total dollar amount of relocation assistance payment.

The total amount and form of the relocation assistance must be documented in a signed employment offer letter. If the amount and/or form are not documented in the signed offer letter, additional documentation detailing these criteria and unit head approval must be provided for the benefit to be processed.

All relocation payments are considered taxable income, may not be grossed-up, and are not considered wages for SURS purposes.

In general, the one-time moving payment to the employee for relocation assistance is unallowable for sponsored awards.

Reason for the Policy

The University of Illinois System allows one-time moving payments to assist with the recruitment of new or transferred employees.

Applicability of the Policy

Units may, when funds are available, provide a one-time moving payment, with the option to process direct payments to system-contracted moving vendors to new or transferred faculty or staff. Contact the appropriate university or system human resources office if there are questions regarding the applicability of this policy.


Units must ensure that the cumulative amount of relocation assistance does not exceed the amount documented in a signed offer letter. An employee will not receive their one-time moving payment until after their first regular paycheck. Units should either process the full documented amount or a lesser amount that accounts for direct payments to system-contracted moving vendors.

One-Time Moving Payment to the Employee

The request to process a one-time moving payment must be submitted to University Payroll & Benefits. Units are responsible for initiating the one-time moving payment request and for following additional system office or university-specific requirements.

The language in the signed employment offer letter an/or additional documentation should be read as follows:

You will be provided with a one-time relocation assistance payment of $[amount of payment] to cover costs associated with your relocation, processed directly to you after your first regular paycheck. This assistance is taxable income, and the appropriate withholding from your pay will be applied.

Units should process the payment via PARIS using earn code REL under the adjustment reason “Agreements/Settlements”. The offer letter and any additional documented approvals from the Chancellor or equivalent if the payment amount exceeds $15,000 must be scanned into the employee’s Banner Document Management (BDM-Xtender) record under the “OFFER-ACCEPTANCE LETTER” document type by HR and/or the unit for UPB to process the payment. Refer to University Payroll & Benefits guidance at Initiate a Relocation Assistance One-Time Moving Payment – Prior Underpayment Adjustment (PUA) for additional information regarding how to process these payments.

A PARIS Prior Underpayment Adjustment (PUA) for making a one-time moving payment cannot be initiated and reviewed until after the first calendar day proceeding the Current Adjustment Cutoff deadline for the first pay period being paid found on the published University-Payroll-Schedule. PARIS PUA transactions routed to the Campus Apply Stop by close of business Friday will then pay on the following Friday.

Option to Process Direct Payments to System-Contracted Moving Vendors

University Purchasing Divisions assist Units with direct payments related to Employee Household Goods Moving. Units must complete an applicable Relocation Template letter (UIUC, UIC, UIS, or University System) and email it to the Federal Warehouse Co. copying the new employee and the Units’ Purchasing representative(s), as identified on the Template. Units should contact their Purchasing Office with questions about the Relocation Template letter. Units must attach a copy of the signed offer letter and the completed Relocation Template letter when processing expense reports for approved payments in Chrome River.

University Payables reports personal moving expenses to University Payroll & Benefits (UPB). Employees will see an increase in their taxable income and withholdings. This withholding may occur several pay periods after an expense report is processed by University Payables.

Related Policies and Procedures

8.11 Relocation Assistance
18.5 Fringe Benefits

Additional Resources

Chrome River Resource Page
Payroll Adjustment Request Interface System (PARIS)
Initiate a Relocation Assistance One-Time Moving Payment – Prior Underpayment Adjustment (PUA)
Household Goods and University Equipment Moving

First Published: January 2020 | Last Updated: April 2023 | Last Reviewed: April 2023

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