Moving and Relocation Allowance

Policy Area: Human Resources
Policy Title: Moving and Relocation Allowance
Submitted Date: February 2022
Effective Date: March 7, 2022
Submitted By: Human Resources
Approved By: Cabinet
Policy Owner: Human Resources

Policy Statement:
The College may pay a moving and relocation allowance to eligible new administrative employees. The policy defines the procedures for processing a moving allowance payment, and the treatment of such payments for tax purposes. The payment of a moving allowance is at the sole discretion of the College and subject to the availability of funds.

Procedure:
Eligibility

• The distance from your old home to your new work location must be 50 miles or greater
  • Definition for “move” is a new hire moving their primary household to Albion College to begin employment.
  • Definition for “relocation” is an existing employee whose work site has been changed, i.e., a territory has changed requiring residence in a new location
• Minimum length of appointment is one (1) academic year.
  • Employees with assignments greater than 1 year shall qualify for Moving Allowance payments based on distance of move and number of individuals moving in the household (see chart below)
  • Employees with one (academic or 12 month) year assignments are eligible for a $500 moving allowance
• Minimum appointment is 75% (.75 FTE).
• The move destination must be within 20 miles of the work location (e.g. for someone working on the main campus, they must move to the greater Albion area [within 20 miles of Albion College]).
• All move related payment commitments made to an employee must be included in the employee offer letter.
• All moving allowance payments made by the College to the employee are considered taxable income to the employee in accordance with the Internal Revenue Code. Moving allowances are included in the employee’s gross income, subject to withholding of applicable income and payroll taxes. Such payments must be reported as additional wages on the employee’s IRS Form W-2. The College will provide additional payment to offset the extra taxes due on the relocation benefits (i.e. gross up). 
• The College  payroll system will be used to manage all payments and tax reporting associated with employee moving/relocation allowance.
• Payments to employees will occur after their start date and after their position is fully active in the College payroll system.
• Pre-payments are not available — no payments are made to the new employee prior to their start date.
• The moving allowance will be paid as soon as administratively possible 
• The move and all payments must occur within one year of the employee’s start date.
• Employees should complete the Moving and Relocation Request Form as part of their onboarding materials

Although receipts are not required, employees will need to show proof of an actual move by updating their mailing address with the College to a local address (within 20 miles of Albion, Michigan). Employees should retain all itemized receipts for their own tax purposes.

Moving Allowance Payments
Moving allowances will be determined by the distance of move and number of individuals moving in the household (see chart below):

Should the College employ two benefit eligible members of the same household, please discuss with Human Resources.

Exceptions to this policy must be approved by the President and Chief Financial Officer or designee(s).

Relevant Definitions:

• Move: refers to a new hire coming to Albion College (or related work location) to begin employment
• Relocation: refers to an existing employee whose work site has been changed, i.e., a territory has changed requiring residence in a new location

Violations

A violation of any portion of this policy may result in repayment of partial/full moving allowance and disciplinary action, up to and including termination of employment and/or legal action.

Primary Impact On: Staff; faculty should refer to the Faculty Handbook