Printed on July 16, 2018, 2:59 pm
TCATs, Community Colleges, Universities, System Office
The purpose of this Guideline is to establish the processes and procedures for payment of TBR system employee moving expenses.
For purposes of this Guideline, Chief Executive shall refer to the President of an Institution, the Vice Chancellor for Tennessee Colleges of Applied Technology, or Chancellor, as applicable.
- Moving Allowance
- Newly hired full-time employees who relocate from their former residence to a new residence may be issued a one-time moving allowance, if deemed appropriate by the Chief Executive or designee. The contract for moving allowances should be executed at the time of employment.
- If the institution recruits and hires more than one person from the same family, only one moving allowance is permitted.
- To be eligible to receive a moving allowance and to comply with the current guidelines published by the Internal Revenue Service (IRS), the move must meet the minimum IRS distance test of 50 miles from the location of the former residence.
- For example, if the location of the former workplace was 3 miles from the employee’s former home, the location of the employee’s new workplace must be at least 53 miles from the employee’s former home.
- If the employee did not have a former workplace, the new workplace must be at least 50 miles from the employee’s former home.
- The distance between the two points is the shortest of the more commonly traveled routes between them.
- Arranging for Moving and Payment
- The moving allowance is paid directly to the employee, reported as taxable income, and is subject to all tax liability at the time of payment.
- The amount of the moving allowance will be included in boxes 1, 3, and 5 of the employee’s W-2.
- The employee will make all arrangements for the move without the involvement of the institution.
- The employee does not submit moving expense receipts to the institution, but is advised to keep them for personal tax return purposes.
- The employee may be able to recover the income tax withheld by filing the appropriate IRS forms with their tax return (IRS Form 3903 Moving Expenses).
- This recovery is dependent on the IRS regulation in force at the time of payment.
- The employee receiving the moving allowance will be responsible for documenting expenses on their federal tax return required by IRS Publication 521 Moving Expenses.
- All moving allowances require approval from the Chief Executive.
- For persons hired that require the Chancellor’s approval, approval of the moving allowance will be included in the hiring approval.
- The Vice Chancellor of Tennessee College of Applied Technology shall approve all Tennessee College of Applied Technology moving allowances.
- Other Provisions
- Moving allowances will be paid or reimbursed only after a contract is executed between the employee and the institution. (See Exhibit 1)
- All payments must be made within twelve (12) months of the date employment begins for new employees or relocation occurs for relocated employees.
- The agreement on the amount of the moving allowance to be paid should be clearly understood in writing between the employee and the institution.
- The institution shall assume no liability whatsoever for personal injuries, property damages, or other losses which may be sustained in connection with any moves undertaken pursuant to these regulations.
- In consideration for the Institution paying a moving allowance, the employee agrees to remain employed by the Institution for a period of at least one year. For faculty appointed on an academic basis, one year is defined as one regular academic session (Fall and Spring Semesters, nine months). For all other annual faculty and employees, one year is defined as twelve months. Should the employee voluntarily leave employ prior to completion of that year, the employee will be liable to the Institution for repayment of any moving allowance which the Institution has paid (to or on behalf of the employee), together with all payroll taxes withheld by the Institution in connection with such allowance. If the employee is terminated for cause during the first year, the Institution may seek repayment of any moving allowance.
New Guideline Approved at President Meeting August 20, 2013. (Section moved from General Personnel Policy at Board Meeting, September 20, 2013). Revised at Presidents Meeting, Nov. 5, 2013.