To provide guidelines governing the payment of a taxable moving allowance.
Authority:
Vice Chancellor of Business Affairs
History
Updated March 9, 2022; Updated May 29, 2015; Updated November 15, 2012; supersedes former Administration Policy No. ACG1.70, “Moving Expenses Payment/Reimbursement”; Updated July 1, 2006; Updated May 1, 1994; Updated March 1, 1987; Effective July 1, 1979
Source of Authority:
Internal Revenue Service (IRS), Office of State Budget and Management (OSBM), and the University of North Carolina System (UNC) Board of Governors
To provide guidelines governing the payment of a taxable moving allowance in accordance with IRS regulations, guidance from the OSBM Budget Manual, and restrictions of fund usage per the UNC Policy Manual.
Scope
This policy applies to all University departments and employees.
Policy
Source of Funds for Allowance
The employee moving allowance must be paid from institutional unrestricted trust or agency funds at the discretion of the budgetary authority. State appropriated general funds and restricted trust funds cannot be used to pay a moving allowance.
Senior Officer Approval Requirement
Approval must be acquired by the appropriate department head/director/dean and the division vice chancellor using an appointment letter template provided by the Tax Office.
Reporting of Benefits
A moving allowance paid by the University to an employee is considered a taxable benefit and included in the employee’s gross wages and taxed on the first eligible pay cycle after employment and payment of allowance. Taxable benefits are subject to employment taxes and withholdings and are reported on the employee’s W-2 in accordance with IRS guidance.
Time Limitations
Employees must reimburse the University 100% of any allowance received (gross, not net of taxes) if employee separates (voluntarily or involuntarily) from the University prior to 90 days.
Employees, at the discretion of their divisional vice chancellor or Chancellor, as applicable, may be required to reimburse the University a prorated portion of any allowance received (gross, not net of taxes) if the employee separates (voluntarily or involuntarily) from the University between 91 days and one year of hire for a position outside of North Carolina state government.
The employee should work with the hiring department to determine the amount to be repaid. No tax withholding or reporting adjustments will be made by the Payroll Office. Repayment to UNCW should be made directly to the hiring department and will be outside of the payroll system.