FSS/PPS 03.19 - Moving Allowance
FSS/PPS No. 03.19 (03.05.04)
Issue No. 6
Effective Date: 2/19/2018
Next Review Date: 12/01/2019 (EY)
Sr. Reviewer: Director of Payroll and Tax Compliance
This document describes the policy and procedures for authorization and payment of a moving allowance for an eligible Texas State University employee.
Payment for a moving allowance may be authorized only for full-time faculty, principal investigators, technical employees, and administrative and professional staff employees at the director level and above.
Prior to making any offer to pay a moving allowance, approval must be obtained on an Authorization for Employee Moving Allowance Form from the Cabinet officer of the new employee’s department and the vice president for Finance and Support Services.
The new employee’s city of prior residence must be in excess of 100 miles from their assigned designated headquarters at Texas State.
Payment of a moving allowance is only made through payroll and is considered taxable income to the employee. The allowance will not be increased for the applicable taxes, but will be reduced by the applicable federal income tax and FICA deductions. The following local funding sources may be used to pay the moving allowance:
restricted gift funds, when their use is authorized by or consistent with donor or grantor intent; or
sponsored project accounts, provided approval is obtained from the Office of Research and Sponsored Programs.
State appropriated funds may not be used for payment of a moving allowance.
A moving allowance shall not exceed an amount equal to one-tenth of the individual’s annual salary or $7,500, whichever is greater. For full-time faculty, “annual salary” is the nine-month salary amount. Account managers and Cabinet officers may choose to set lower limits.
Returning employees must have a break in service of more than five years to qualify for a moving allowance.
An exception to any provision of this document requires approval by a Cabinet officer.
- Pre-determined moving allowance - the amount approved by the new employee’s Cabinet officer and the vice president for Finance and Support Services.
PROCEDURES FOR OFFERING MOVING ALLOWANCE TO A NEW EMPLOYEE
Payment of a moving allowance from university funds for a prospective university employee must be pre-authorized on an Authorization for Employee Moving Allowance Form.
The commitment and dollar amount of the pre-determined moving allowance authorized must be specified in the offer letter to the prospective employee.
PROCEDURE FOR PROCESSING PAYMENT REQUEST
- The department’s account manager is responsible for initiating the payment of a moving allowance for a new employee. The Authorization for Employee Moving Allowance Form must be attached to the Personnel Change Request (PCR). The pre-determined authorized amount is the amount paid to the employee before taxes.
PROCEDURE FOR PROCESSING TAXABLE MOVING ALLOWANCE PAYMENTS
- Payroll and Tax Compliance will process the PCR and include the full amount as taxable income on the next payroll cycle. Payroll taxes, including Federal Withholding, FICA, and Medicare will be deducted from the recipient’s next paycheck, and payroll will record the matching employer contributions.
REVIEWERS OF THIS PPS
Reviewers of this PPS include the following:
Position Date Director of Payroll and Tax Compliance December 1 EY
This PPS has been approved by the following individuals in their official capacities and represents Texas State Finance and Support Services policy and procedure from the date of this document until superseded.
Director of Payroll and Tax Compliance; senior reviewer of this PPS
Associate Vice President for Financial Services
Vice President for Finance and Support Services