Moving Allowances (II.A.2)

Volume II: Business and Finance
Chapter A: Accounting, Budget and Expenditures
Responsible Executive: Deputy Chief Financial Officer
Responsible Office: Office of the Controller
Date Issued: May 1, 2004
Date Last Revised: March 1, 2023

Contacts
Statement of Policy
Reason for This Policy
Individuals and Entities Affected
Exclusions
Responsibilities
Definitions (defined terms are capitalized throughout the document)
Related Documents, Forms and Tools
Website Address for This Policy
History and Updates
Appendix

Contacts

Policy Clarification

Controller
765-494-7536 | Controller’s website

Campus Specific Questions

Fort Wayne: Vice Chancellor for Financial and Administrative Affairs
260-481-4199 | Financial and Administrative Affairs Staff

Northwest: Vice Chancellor for Finance and Administration
219-989-2232 | financeandbusinesservices@pnw.edu

West Lafayette: Controller
765-494-7536 | Controller’s website

Statement of Policy

Purdue University is dedicated to attracting, developing and retaining valuable people for its workforce. To fulfill this goal, it may be necessary to conduct employment searches on a national or international scale. To offer competitive employment packages, Unit Heads may wish to include a provision for relocation expenses with an offer of employment. This policy allows hiring units to provide a moving allowance for the candidate’s personal moving expenses. The Unit Head may approve moving allowances to defray personal moving expenses in accordance with this policy and in a consistent manner within each eligible position classification.

Approvals

For executive staff, management staff, professional staff, and lecturer positions, the Unit Head may approve moving allowances up to $15,000. Staff reporting directly to the President require approval of the President or designee.
For all faculty, including clinical/professional, research, and visiting faculty positions, the Unit Head who is the dean may approve moving allowances up to $15,000.
For postdoctoral researchers, the Unit Head may approve moving allowances up to $5,000.

University general funds, auxiliary funds and/or gift funds are allowable sources for payment of moving allowances. The hiring unit must work with its business manager to ensure funds for allowances are processed correctly. Positions funded by sponsored program funds may not be eligible for a moving allowance. Therefore, prior to offering a moving allowance using sponsored program funds (federal or non-federal), hiring units are required to (1) familiarize themselves and consult with Sponsored Program Services on sponsor specific guidelines and restrictions and (2) work with their business manager to ensure appropriate funding is available. In most cases, the funding source for the salary and moving allowance must be consistent.

Exceptions to the dollar limit require the approval of the unit officer who reports to the President. Exceptions to the position type require the approval of the Comptroller (West Lafayette) or Vice Chancellor for Finance (Fort Wayne and Northwest).

In accordance with the Tax Cuts and Job Act of 2017 (TCJA), all payments made to an employee for moving costs are considered taxable income to the employee. These payments are subject to both income and FICA (Social Security and Medicare) taxes.

Other Expenses

While not considered personal moving expenses, moving expenses for laboratory equipment and supplies related to employment at Purdue University may be charged to University funds utilizing standard University purchasing procedures for transportation of these items.

Reason for This Policy

To offer a competitive compensation package, financial assistance to defray relocation expenses may be desired to supplement the salary and excellent benefits package offered to the candidate.

Individuals and Entities Affected

Unit heads and business office staff of hiring units.

Exclusions

Moving expenses are not reimbursable or covered by a moving allowance for the following individuals:

Undergraduate students
Graduate students
Positions classified as administrative and operational support
Positions classified as police, fire and skilled trades
Limited-term lecturers
Temporary employees
Clinical interns and clinical residents
Positions not on university payroll

Responsibilities

Comptroller

Provide oversight for administration of this policy.

Unit Heads

Review and make determinations on moving allowance requests for hiring units under their purview in accordance with this policy.
Apply this policy in a consistent manner within each position classification, ensuring that standard criteria are used to determine whether and at what dollar amount moving allowances are granted within the unit.

Hiring Units

Obtain required approval before offering candidates moving allowances.
Ensure that approved moving allowances, including the tax consequences of those amounts, are documented in the candidate’s offer letter or in subsequent documentation. Copies of the approved documentation are required to process the payment.
Refer to the moving allowance webpage for detailed information on moving allowances.

Business Managers

Advise hiring units on the appropriate use of moving allowances.

Payroll Offices

Ensure that applicable income and FICA taxes are deducted from payments for moving allowances.

Definitions

All defined terms are capitalized throughout the document. Refer to the central Policy Glossary for additional defined terms.

Unit Head
A vice president, vice provost, vice chancellor, dean, director, or head of an academic school, division or department.

Website Address for This Policy

www.purdue.edu/vpec/policies/business-finance/iia2

History and Updates

March 1, 2023: Added postdoctoral researchers to eligible positions. Delineated required approval for eligible positions and designated authority for approving position type exceptions. Eliminated option for expense reimbursements. Clarified exclusions. Added definition for Unit Head and noted the responsibility for consistent application of the policy. Updated hyperlinks throughout.

September 1, 2019: Language describing tax differences between moving allowances and moving expense reimbursement replaced with statement that both forms of payment are taxable as income. Responsible executive changed. Aligned references to staff classifications with current terminology and added exclusions for clarification. Policy title changed; former title was Moving Allowances or Expense Reimbursements for Faculty and Administrative/Professional Staff.

November 18, 2011: Policy number changed to II.A.2 (formerly IV.5.6).

February 8, 2011: Related Documents section updated.

April 6, 2007: Language throughout the policy was updated and the amount for reimbursements was raised to $15,000.

May 1, 2004: This policy supersedes Executive Memorandum No. D-3, issued November 15, 2001. Executive Memorandum No. D-3 superseded policy memoranda dated August 10, 1988; August 29, 1988; and June 26, 1990.

Appendix

There are no appendices to this policy.