Process an Employee Relocation Reimbursement

Moving and Relocation Expenses

The University may pay the moving and relocation expenses of new faculty and staff members who are transferred from one geographic location to another. The preference is to use a university-wide contract for the move. Moving expenses are the costs of packing, shipping and storing household goods. Relocation expenses are the costs of travel for the faculty or staff member and family to the position assigned, including transportation, food, and lodging, travel for trips necessary to secure living quarters and temporary lodging.

In all cases, the individual must already have an appointment through University Human Resources in place and a reimbursement agreement for any payment or reimbursement to be made.

Please read the Employee Relocation Policy 40.2.22 (PDF) prior to proceeding with the relocation and moving expense process.

As of January 1, 2018, the University has enacted the Tax Cuts and Jobs Act. The Act suspended the exclusion from taxable income for qualified moving expenses incurred by employees. Further, as of July 1, 2018, the Act suspended the tax-free reimbursement of qualified moving expenses. Moving expenses incurred by employees will be treated as wages subject to federal, state and FICA tax withholding. All relocation expense payments for calendar years 2018 through 2025 constitute taxable income to the employee, regardless of whether they are paid directly by the University or reimbursed to the new employee. Further, please note that employees may not deduct these expenses on their individual income tax returns. 

University faculty and staff should contact their respective human resource representatives with general relocation questions.

Three Processes for Moving Expense Payment 

1. Rutgers Pays the Moving Company Directly
   
   It is encouraged that the University pay the moving company directly (for household goods or office/laboratory equipment) using one of the University’s contracted suppliers, for ease of buying, use of discounts, and fewer out-of-pocket expenses for the new employee.  Units must complete and sign the Taxable Moving Expense Reimbursement form. Units then attach the signed form to an RU Marketplace requisition. 
   
   Please refer to the  Procedure for Reimbursement of Relocation Expenses within Tax Services for detail
    
2.  Employees Reimbursement Before the Appointment Has Commenced
   
   While it is encouraged that the University pay any moving expenses directly to a moving company, other relocation expenses related to travel to the new employment location, or trips to secure a living arrangement must be reimbursed to the employee separately.  If waiting until the first pay period will cause financial hardship, the unit may do a check request on behalf of the employee and the amount will be taxed on the employee’s paycheck. 
   
   Units must first complete and sign the Taxable Moving Expense Reimbursement form. Units then attach the signed form to the check request form in RU Marketplace, along with any other required forms, using the account code 69305 or 56990 (office/laboratory moves). See the check request matrix for documentation needs.
   
   Please refer to the  Procedure for Reimbursement of Relocation Expenses within Tax Services for detail. 
    
3. Employees Reimbursement After the Appointment Has Commenced
   
   All relocation expenses related to travel and moving expenses that must be reimbursed directly to the employee after the appointment has commenced must go through Payroll Services. Units must complete and sign the Taxable Moving Expense Reimbursement form and submit, along with original receipts, to Payroll Services.
   
   Please refer to the Procedure for Reimbursement of Relocation Expenses within Tax Services for detail.

Related Documents

Employee Relocation Policy 40.2.22 (PDF)
Procedure for Reimbursement of Relocation Expenses
Taxable Moving Expense Reimbursement form