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Lump Sum Relocation Incentive Payment
Information & Procedure

CONTENTS

UNDERSTAND

Authority & Approval

As authorized by Administrative Policy Statement 34.2, the administrative official with delegated authority may approve a lump sum relocation incentive payment when necessary to recruit a new employee or to retain a current employee who will have to make a domiciliary move in order to accept a University appointment. Lump sum relocation incentive payments must be made from the organization’s existing resources.

Authority to approve lump sum relocation incentive payments is as follows:

Appointing authorities may establish procedures that their units must follow to obtain approval for relocation incentive payments.

Payment Limit & Exceptions

Relocation incentive payment in excess of 25% of the employee's annual salary requires advance approval of the provost for faculty, academic appointees, and librarians, or the Vice President for Human Resources for staff.

Relocation of Current Employees

University faculty or staff who must relocate to another geographic location (either in the US or internationally) as part of their University employment are eligible to receive a lump sum relocation incentive payment under the following conditions:

  1. The faculty or staff member will establish residence at the new location.
  2. The relocation will last for a minimum of 6 months.
  3. A faculty or staff member who has a position that requires living in another geographic location, with periodic return stays to the campus where the regular appointment is held can only receive one lump sum relocation incentive payment.
  4. An individual who has received a lump sum relocation incentive payment may become eligible to receive another lump sum relocation incentive payment if the individual must make a domiciliary relocation to move to a different geographic location for a minimum of 6 months.
  5. An individual who has received a lump sum relocation incentive payment upon initial appointment to a University position may not receive an additional lump sum relocation incentive payment due for relocating to a different geographic location within 12 months of the initial appointment if the need to relocate was known at the time of the initial University appointment.

Repayment

The full amount of the relocation incentive payment must be repaid to the University if within one year of the date of appointment the employee voluntarily terminates employment or engages in behavior that makes termination of employment necessary. Termination of employment as a result of layoff, disability separation, or other good cause as determined by the Provost or Vice President for Human Resources (or their respective designees) does not require repayment of the relocation compensation.

Moving Expenses

Relocation incentive payment is not a substitute for or an alternative to the payment of moving expenses incurred by new or transferred employees authorized by Administrative Policy Statement 34.1. As determined by the employing official and approved by the designated authority, a prospective employee may:

Taxation

Federal law requires that employees pay income tax on lump sum relocation incentive payments. The University reports lump sum relocation incentive payments on the W-2 form. Employees may be eligible to deduct moving expenses on year-end tax returns. Employees may wish to seek advice from a tax professional. The UW Payroll Office is prohibited from providing tax advice.

Payroll Deductions

The Payroll Office deducts the following from all lump sum relocation incentive payments:

ACT

Employment Offers

  1. As the employing official, you may discuss the relocation incentive payment with the successful job candidate but you must inform the candidate that payment is contingent on approval by the authorized official, and that payment can only be made after the individual is appointed and on the payroll. Under no circumstances can payment be made in advance of the individual's appointment and placement on the payroll.
  2. Upon receiving final approval, you may present the relocation incentive offer to the candidate.
  3. Prepare the draft job offer letter which must include the following statement :

"This offer includes a relocation incentive payment in the amount of $______. Acceptance of this offer confirms your understanding that the full amount of the relocation incentive payment must be repaid to the University, if within one year of the date of your appointment you voluntarily terminate University employment, or if you engage in behavior that makes termination of employment necessary. In addition, acceptance of this offer may have tax consequences for you, and necessary payroll deductions will be taken from the relocation incentive payment. If you have questions about the tax implications of the relocation incentive payment, you may wish to consult a tax professional for advice."

Process Payment

  1. Complete the Relocation Incentive Payment Approval Request Form and forward it for approval according to the form's instructions.
  2. To initiate payment, once the candidate has accepted the job offer and is on the payroll, prepare the Relocation Incentive Payment Authorization Form attach a copy of the completed Relocation Incentive Payment Approval Request Form and send both forms to the Payroll Office Manager, UW Payroll Office, Box 355655.

Direct questions about relocation incentive payment to Academic Human Resources for faculty and academic appointees, the Dean of Libraries for librarians and your unit's HR Service team for professional or classified staff.

EXPLORE

Administrative Policy Statement 34.2 – Lump Sum Relocation Payment

Administrative Policy Statement 34.1 – Payment of Moving Expenses Incurred by New or Transferred Employees