The University of Washington is permitted by the state of Washington to pay moving expenses for eligible new or transferring employees. The Lump Sum Moving Allowance is a UW preferred option to facilitate paying an employee for expenses associated with a move to the University.
2018 Federal Tax Reform Update - Moving Expenses
Effective January 1, 2018, all personal moving expenses related to either reimbursements or payments on behalf of employees are taxable. Furthermore, these payments are taxable without regard to whether receipts and/or appropriate documentation is provided.
Departments paying moving expenses are encouraged to use the Lump Sum Moving Allowance process in Workday. Using this process will ensure that new employees do not receive reduced paychecks while the required tax withholding and payroll tax payments are deducted.
Lump Sum Moving Allowance
The Lump Sum Moving Allowance is an option to facilitate paying an employee for expenses associated with a move to the University. This is a one-time payment that will be included with an employee’s first paycheck. While the amount is at the discretion of the department, the suggested upper limit for the allowance is $5,000. This allowance is intended to be used for all moving and travel expenses associated with the new employee's relocation, and they should not expect additional payments or reimbursements related to their move. Since this is an "allowance", taxes will be withheld when the payment is made.
The Lump Sum Moving Allowance is NOT the same as the Relocation Incentive Payment.
This is also different from the reimbursement process. Departments who would rather reimburse travel expenses related to relocation rather than offer a Lump Sum Moving Allowance should see the Travel Office webpage.
Authorizing the Allowance
UW Hiring Official: Review the One Time Payment guidance on the Integrated Service Center website (direct link for academic personnel guidance) and provide the departmental payroll coordinator with an email authorizing the lump sum moving allowance.
Payroll Coordinator: Use Workday to establish the allowance. For more information about the procedure, review the guidance on the Integrated Service Center website (direct link for academic personnel guidance).
For guidance on One Time payments for other types of employees see the Integrated Service Center User Guide Library and filter by "Moving Expense" in the Topic field.
The individual arranges and pays for the entire move themselves.
The individuals will receive the lump sum payment with their first paycheck, once they are an active employee. The lump sum is intended to be used for all moving and travel expenses associated with the move. The employee should not expect additional payments or reimbursements.
Appropriate taxes will be withheld from the payment amount, and the payment and withholding will be reported on the employee's W-2. Individuals should consult their tax adviser to determine whether any deductions may be available to them. The University will not provide any personal tax advice regarding this payment.
If you are unable to do a Lump Sum Moving Allowance, please see the Household & Laboratory Moves page.
- User Guides which include four guides on One Time Moving Expense Payments (UW Integrated Service Center Guidance)
- Frequently Asked Questions about Personal Moves (Procurement Services FAQs)
- Payment of Moving Expenses Incurred by New or Transferred Employees (APS 34.1)
- Lump Sum Relocation Payment (APS 34.2)
- Lump Sum Relocation Incentive Payment Procedure (UW Human Resources)
Lab / Office Moves
- For local office or lab moves within the UW Seattle Campus, contact UW Moving Services
- For interstate office or lab moves across state lines, see the Household & Laboratory Moves page
|email@example.com||Reimbursement of travel expenses related to relocation|
|firstname.lastname@example.org||State of Washington Contracted Moves|
|email@example.com||Local office or lab moves|