Back to Top
Business and Financial Policies and Procedures

8.11.2 Reimbursement for Relocation Expenses Incurred

Policy Statement

Units of the University of Illinois System may reimburse newly hired or transferred employees for expenses incurred during the relocation process. The system may process direct payments to moving vendors for expenses related to the relocation process. The cumulative relocation payments may not exceed $15,000 without prior approval from the chancellor, vice chancellor for health affairs, provost, or their delegate. The total amount of the financial assistance available to the employee 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. An individual university or the System Offices may require additional levels of approval, or restrictions on the total dollar amount of relocation assistance payment. Relocation payments, both reimbursements and direct payments to moving vendors are considered taxable income, may not be grossed-up, and are not considered wages for SURS purposes.

Relocation payments from sponsored awards must follow current federal and state regulations.

Reason for the Policy

The University of Illinois System allows reimbursement of incurred relocation expenses and direct payments to system-contracted moving vendors to assist with the recruitment of new or transferred employees.

Applicability of the Policy

Units may, when funds are available, provide reimbursement of incurred relocation expenses, 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.

Procedure

University Payables reports personal moving expenses to University Payroll and 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.

Reimbursement for Expenses Incurred

 

University Payables processes reimbursements for incurred relocation expenses. Units should charge reimbursable moving costs either to their regular operating budget or to other funds available for operating purposes. Reimbursement from sponsored awards must follow current federal and state regulations. Consult your university Sponsored Projects Administration office for guidance. A copy of the signed employment offer letter must be provided to University Payables. Refer to the TEM Resource Page for instructions to process expense reimbursement requests.

Option to Process Direct Payments to System-Contracted Moving Vendors

University Purchasing Divisions assist with direct payments related to Employee Household Goods Moving. A copy of the signed employment offer letter designating reimbursement as the form of relocation assistance must be provided to your university Purchasing Division before a direct payment to a moving vendor can be processed. Units must attach a copy of the signed offer letter when processing expense reports for approved payments in the Travel Expense Management (TEM) system, or as directed by Purchasing. Contact your university Purchasing Division for assistance with direct payments to moving vendors.

Related Policies and Procedures

8.11 Relocation Assistance
18.5 Fringe Benefits

Additional Resources

TEM Resource Page
Employee Household Goods Moving

Last Updated: June 1, 2020 | Approved: Senior Associate Vice President for Business and Finance | Effective: January 2020

Give us feedback about this page Submit Feedback