University of Arkansas at Little Rock
Policy Name: Moving Expenses
Policy Number: LR 309.10
Effective Date: August 3, 2018
Arkansas Code Annotated §19-4-522 (e) allows the payment of employee moving expenses from state funds by institutions of higher education. The purpose of this policy is to outline allowable relocation costs and to clarify non-allowable costs.
Within the fiscal limitations of departmental units of the University of Arkansas at Little Rock, a dean, director, or department head may offer a lump sum payment for moving expenses for new faculty or professional staff employees. The terms of agreement for payment of moving expenses should be included in the letter of appointment and/or letter offering employment. The university’s obligation applies to the movement of a “household” and does not constitute a separate allowance to each member of a family employed by the university.
In accordance with the Tax Cuts and Jobs Act of 2017, all university payments for moving expenses are no longer deductible expenses and are subject to Social Security (or FICA Alternative), Medicare and Federal withholding taxes. As a result, all moving expenses paid from calendar year 2018 forward will be taxable on the employee’s paycheck and included on the employee’s Form W-2 for the year.
The lump sum payment for moving expenses will be paid to the new faculty or professional staff employee through the submission of a Moving Expenses Compensation EPAF after the primary job has been established in the payroll system.
Source: Arkansas Code Annotated §19-4-522(e); Internal Revenue Service Publication 521
Approved By: Chancellor Andrew Rogerson, August 3, 2018
Custodian: Office of the Vice Chancellor for Finance and Administration