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Controller’s Office Procedures
Moving and Relocation Expenses Page 1 Revised 1/30/18
Procedure 20345: Moving and Relocation Expenses
Effective 1/1/18, this procedure is under revision due to the new Federal Tax Laws which resulted
in all moving and relocation reimbursements being taxable income to university employees. New
guidance will be available soon. University department should communicate to new employees
that all moving and relocation payments are 100% taxable effective 1/1/18.
The university may reimburse moving and relocation expenses in accordance with the
Commonwealth of Virginia and Internal Revenue Service (IRS) policies and regulations.
Regulations, limitations, and required approvals are described in this procedure.
A. Eligibility
The employee being reimbursed must be a salaried employee of the university in a full-time
position. The appropriate vice president, dean or department head must approve the
Employment Relocation Agreement. To be eligible for reimbursement, the employee's relocation
must meet all of the following conditions:
Availability of Qualified Applicants. The university must ascertain that the new
employee is the best qualified applicant or State employee available to fill the position.
At Employer's Request. The relocation must be at the request of the university and for
the good of the State service as determined by the department dean or vice president.
Expenses will not be reimbursed when the move is at the request of, or for the
convenience of, the employee.
Distance. The distance between the employee's new work location and the former
residence must be 50 miles greater than the distance between the employee's old work
location and the former residence. The employee's commuting distance must have
increased by at least 50 miles one way. The 50 mile threshold is set by the IRS. In the
event that the Controller’s Office approves a move less than 50 miles, the
reimbursement will represent taxable income to the recipient.
Permanent. The employee must be reasonably expected to work on a regular full-time
basis in university service for at least 1 year, commencing on the date that the employee
starts work on a regular basis at the new location.
Note: If the employee's spouse is a university employee and otherwise eligible for moving and
relocation expenses, reimbursements of any such expenses will be paid to one employee only
and to move the primary household only to the new location.
B. Employment Relocation Agreement