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Moving Expenses

About this Policy

Moving Expenses

Policy Number: 22311

Effective Date:
Dec 12, 2017

Last Updated:
Aug 01, 2018

Responsible Office:
UM System Controller's Office

Responsible Administrator:
UM System Controller

Policy Contact:

Campus Accounting Office


  • Finance

Request additional information


Due to IRS tax law changes, the University will no longer follow University Policy 22311 on Moving Expenses. Effective August 1, 2018, the HR policy on moving allowance should be followed (see HR-103). Offer letters dated prior to August 1, 2018, will be honored under the agreement made in the original offer letter. For procedures related to this transition process, please see the Accounts Payable Shared Services website at “Top 10 Site Links”. This policy will remain available for reference on offers made prior to August 1, 2018 and will be deleted upon the completion of the transition.



This covers authorized Moving Expenses for employees.

Reason for Policy

To ensure compliance with IRS regulations and University policies on Moving Expenses.

Policy Statement

Payment of Moving Expenses may be authorized for new employees.  Moving Expenses may also be authorized when it is in the best interests of the University to move a current employee from one campus or location to another.  Payment of Moving Expenses is not an entitlement and will not be authorized in all circumstances.  Departments may limit reimbursements to less than actual expenses.  Prior to making an offer to an employee for payment of Moving Expenses, the payment must be approved by the administrator responsible for funding, and authorized by the President, Vice President, Chancellor, Hospital Chief Executive Officer, or a designee.

Moving expense payments are not to exceed 10% of the employee's annual salary or the actual cost of moving, whichever is less.  In special circumstances, the President, Vice President, Chancellor, or Hospital Chief Executive Officer may authorize payment for actual Moving Expenses in excess of 10% of the employee’s salary.

To qualify for reimbursement:

  • The new job location must be at least 50 miles farther from the employee's former home than the previous job location was from the employee's former home; And
  • Generally, the expense must be incurred within one year from the date the employee started work at the new location.  If the Moving Expenses were not incurred within one year, the employee must show that circumstances existed that prevented the move within the one-year time.  Exceptions may be made in accordance with Internal Revenue Service guidelines.

Allowable expenses include expenses that are reasonable to the circumstances of the move and should be by the shortest, most direct route available by conventional transportation (excluding meals). Allowable expenses may include the following:

  • Rental of a vehicle (including gas).
  • The moving mileage reimbursement rate set by the Controller's Office for use of a personal vehicle
  • Transportation from the former home to the new home for the employee and members of their household other than by car (i.e. airplane, train, etc). Only the expense for one trip per person of the household is allowed.
  • Lodging for the employee and members of the employee's household while traveling from the former home to the new home.  This is limited to one day after leaving the employee’s former home and one day upon arrival to the new home.
  • The cost of supplies needed for packing, crating, and transporting household goods and personal effects.
  • Actual expenses for connecting or disconnecting utilities (excluding deposits).
  • The rental of a truck or trailer used to transport household goods and personal effects.
  • The cost of shipping a car and/or household pets to the new home.
  • The cost of storing and insuring household goods and personal effects within a period of 30 consecutive days from the day the items are moved from the former home until they are delivered to the new home.

Unallowable expenses include, but are not limited to the following:

  • Pre-move house hunting expenses
  • Return trips to former residence after accepting employment with the University
  • Meals consumed while traveling or while living in temporary living quarters
  • Temporary living quarters including hotel stays that exceeds the lodging limits under allowable expenses
  • Temporary storage that exceeds 30 days
  • Selling or settling on unexpired lease on the former residence
  • The cost of buying a new residence
  • Security deposits (including any given up due to the move)

Payments for Expenses
If the move is made by a commercial moving company, the employee may elect to either pay the full amount of the Moving Expenses and request reimbursement for the authorized amount, or make arrangements with the moving company for the University to pay directly for the authorized amount.

If the request for reimbursement for Moving Expenses is submitted to the hiring department within 60 days of being paid or incurred, the expenses will be reported for informational purposes in box 12 on the employee’s W-2.  If later than 60 days they will be reported as taxable income on the employee’s W-2. In accordance with Internal Revenue Service (IRS) regulations, all reimbursements to employees for Moving Expenses will be reported on the W-2 form.  If reported in box 12, it is the employee’s responsibility to determine the taxability of such payments.


Moving Expenses - reasonable expenses of moving the employee’s household goods and personal effects, and travel (including lodging but not meals) to the employee’s new home in accordance with Internal Revenue Service regulations.


UM System Controller’s Office:

  • Report Moving Expenses on the employee’s W-2


  • Determine the method by which requests for the authorization of Moving Expenses are processed and approved.  Campuses may set conditions for repayment to the University of a portion or all Moving Expenses if the employee does not remain an employee of the University for an agreed upon amount of time.


  • Review and ensure adequate documentation is submitted
  • Ensure Moving Expenses do not exceed the authorized limit
  • Approve request for reimbursement or direct payments

University Employees:

  • Request approval for direct billing for applicable Moving Expenses
  • Timely submit requests for reimbursement of expenses
  • Provide documentation of Moving Expenses submitted for reimbursement

Additional Details


Finance Forms – Travel and Expense Reimbursement

Related Information

IRS Publication 521 – Moving Expenses:

IRS Form 3903 and Instructions on Moving Expenses:

University Collected Rules and Regulations – Moving Expenses

HR – 103 Moving Expenses policy


HR-103 Moving Allowance Policy was implemented on August 1, 2018 and replaces this policy for all new moving allowance agreements dated August 1, 2018 or later.

Formerly Business Policy Manual 214 – Disbursements – Moving Expenses (revised 6/16/2015)


See “Top 10 Site Links”.

Reviewed 2018-08-01