As a result of the Tax Cuts and Jobs Act that went into effect on January 1, 2018, eliminating the exclusion/deduction for qualified moving expenses, the University has adopted a moving allowance policy. The University does not pay moving companies directly or provide reimbursements to individuals for moving expenses. Newly hired individuals can use our contract vendors and benefit from our negotiated rates but will pay the vendor directly. Newly hired employees work with the hiring department to determine the timing of the moving allowance payment. The final determination is at the discretion of the hiring department.
General questions about the timing of the moving allowance should be directed to the hiring department. Questions about the payment of moving allowances prior to the employment start date should be directed to Accounts Payable at acctspay@ua.edu or 348-7377. Questions about the payment of moving allowances after the employment start date should be directed to Human Resources at hrsvctr@ua.edu or 348-7732. Questions regarding the taxability of the payment should be directed to the UA Tax Office at tax@ua.edu.
Moving Allowance Payment Options
Prior to Employment Start Date
If the individual elects to receive the payment prior to the employment start date, the allowance payment will be processed through Accounts Payable using the Concur Invoice Payment Request. When submitting in Concur, the allowance should be charged to Moving Allowance – 78147, and a copy of the offer letter stating the amount of the moving allowance must be submitted as documentation as well as evidence that the offer has been accepted.
No taxes will be withheld at the time of the payment, but all applicable taxes will be withheld from the employee’s payroll when active. Departments will need to communicate to the individual that his or her first paycheck(s) will have taxes withheld related to the moving allowance.
Note that house-hunting trips will not be reimbursed separately and should be included as part of the moving allowance.
Questions about the payment of moving allowances prior to the employment start date should be directed to Accounts Payable at acctspay@ua.edu or 348-7377.
After Employment Start Date
If individuals elect to receive the payment after the employment start date, the allowance will be processed through payroll as a one-time payment using an ePA on the supplemental payroll. For this option, applicable taxes will be withheld at the time of payment with no impact on subsequent paychecks. A copy of the offer letter and/or the Approval Request for Relocation Allowance form stating the amount of the moving allowance, must be submitted as documentation. Note the appointment PA must be received before any supplemental PAs will be paid.
Questions about the payment of moving allowances after the employment start date should be directed to Human Resources at hrsvctr@ua.edu or 348-7732.
Temporary Living Allowances
Temporary Living Allowances will be processed through the payroll system as well using an EPA with applicable taxes withheld at the time of payment. This type of allowance will be processed as multiple payments on the regular monthly payroll schedule. A copy of the offer letter and/or the Approval Request for Relocation Allowance form that stipulates the amount and duration of the temporary housing allowance must be submitted.
Questions about the payment of moving allowances after the employment start date should be directed to Human Resources at hrsvctr@ua.edu or 348-7732.