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Administrative Procedure 8.863 Administrative Procedure 8.863



Title

Relocation Allowances

Header

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.863, Relocation Allowances
Effective Date:  November 2018
Prior Dates Amended:  February 2006, May 2007, March 2016
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: RP 9.208, Relocation Allowances and EP 1.102, General Provisions
Review Date:  August 2021

I. Purpose

The purpose of the relocation allowance is to provide new or transferred employees with funds to cover their personal moving, relocation and transition costs.    The relocation allowance is discretionary on the part of the program manager and is subject to availability of funds.  If a relocation allowance is paid, the amount will be taxable and paid via Payroll.

II. Definitions

No policy specific or unique definitions apply.

III. Administrative Procedure

A.  Responsibilities

      1.  Deans/Directors/Vice Chancellors/Associate Vice Presidents/ Vice Presidents/Chancellors are responsible for ensuring that relocation allowances they approve are in compliance with this procedure and are consistently applied.

      2.  The hiring or transferring authority is responsible for requesting advance approval from their Dean or equivalent.

      3.  The Office of Human Resources and the Disbursing and Payroll Office are responsible for policy administration. The Office of Human Resources is responsible for employee eligibility, while the Disbursing and Payroll Office is responsible for payment matters.

B.  Basic Rules

      1.  Relocation allowances may be processed only for UH Board of Regents  appointees with regular, full-time appointments of at least one year.  As such, relocation allowances shall not be paid to individuals such as civil service employees, visiting faculty and staff, casual appointees, consultants, student help, graduate assistants, postdoctoral fellows paid by stipends, etc.

      2.  Relocation allowances may be made from State and extramural sources of funds if funds are available in the department’s budget.  If funding is from contracts or grants administered by the Office of Research Services, written approval from the contracting/granting agency must be obtained.

      3.  Relocation Allowances are considered gross income to the employee receiving these payments.  Consequently, employees will not be reimbursed for moving expenses, nor will payments be made directly to vendors for these payments.  This includes:  moving company expenses, temporary storage, housing, travel, meals or other personal or family relocation expenses. 

      4.  Relocation allowances are not included in the employee’s base pay and will not be eligible for retirement credit.

      5.  Relocation allowances must be documented in writing to the employee in an offer letter or employment agreement based on applicable union contracts, and directly related to the commencement of employment at UH or the transfer to another island.

      6.  Timing of Payment – Relocation allowances will be paid in the employee’s first paycheck.  Relocation allowances will not be paid to employees prior to the commencement of employment.

      7.  Processing of Payment – The relocation allowance is paid through the Payroll system as a “bonus ERS not eligible” via a Payroll Notification Form (PNF).

      8.  Repayment of Relocation Allowance - The repayment is required by the employee if he or she is not able to complete 12 months of service at the new location.
            
      9.  Required Communication with Employee - The department is responsible for communicating information regarding payment and taxability of the allowance to the employee. To accomplish this, the following paragraph should be included in the employment agreement or offer letter.

DISCLOSURE
A relocation allowance in the amount of $____________ will be paid in lieu of moving, relocation and employment transition cost reimbursement and/or payment. The allowance will be paid to you in your first paycheck. It will be processed as additional taxable compensation through the Payroll system with all applicable income taxes and FICA amounts deducted.  If you do not complete 12 months of service, you will be required to repay the University of Hawaii the full amount of the relocation allowance.

C.  Authorization

      1.  Authorization to approve relocation allowances, not exceeding $8,000, is delegated to respective Deans, Directors, and Vice Chancellors.

      2.  Authorization to approve relocation allowances in excess of $8,000 is delegated to the Associate Vice Presidents/Vice Presidents/Chancellors responsible for the program.  An estimate of relocation costs may be provided by the transferring or new employee as justification for exceeding $8,000.

      3.  Additional approval is required for relocation allowances in excess of $15,000 by the Vice President for Budget and Finance/Chief Financial Officer.  An estimate of relocation costs must be provided by the transferring or new employee as justification for exceeding $15,000.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information

    
Disbursing Office, 956-8575, or
Website:  http://www.fmo.hawaii.edu/payment_reimb/index.html

VI. References

A.  Board of Regents Policy, RP 9.208, Relocation Allowances:  http://www.hawaii.edu/policy/?action=viewPolicy&policySection=rp&policyChapter=9&policyNumber=208&menuView=closed
B.  Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
C.  Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

VII. Exhibits and Appendices


None

Approved

    Signed    
    Kalbert Young    
    October 03, 2018    
    Date    
    Vice President for Budget and Finance/Chief Financial Officer

Topics

relocation allowances; lump sum payment; taxable compensation

Attachments

None