VIII-16.00(A)

UMB Policy on Payment to Assist an Employee Incurring Moving and Relocation Expenses

Financial Affairs   |   Approved August 1, 2018

Responsible VP/AVP

Dawn M. Rhodes, DBA, MBA

Revision History

Purpose

1. To authorize payments to assist an employee who will incur moving and relocation expenses (M & R Expenses) in order to accept a new position offered by UMB.  
2. To allow the use of UMB Funds to make a payment to assist an employee with M & R Expenses when it is in the best interest of UMB to do so and allowed by the USM Policy on Payment of Moving Expenses.
3. To establish requirements and guidelines for a payment to an eligible UMB employee to assist with M & R Expenses (M & R Payment).
4. To authorize a competitive offer of employment, including an M & R Payment, to a candidate for an executive, administrative, or faculty position.
5. To comply with federal and state tax laws relating to any M & R Payment.
6. To meet requirements of the federal cost regulations under the OMB “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”.

Policy Statement

1. In limited circumstances an M & R Payment to a candidate selected for an executive, administrative, or faculty position may be an allowable use of UMB Funds.  An M & R Payment is intended to assist a candidate by supporting M & R Expenses, i.e., the estimated costs associated with house-hunting, moving household goods and personal effects, and traveling to the new home.  An offer of an M & R Payment should take into consideration the distance of the move, the household size, the employee’s UMB salary, and the offer terms required to recruit the employee.  An M & R Payment is intended to assist the candidate with M & R Expenses.  An M & R Payment may not cover all M & R Expenses incurred.  The candidate is responsible for any M & R Expenses that exceed the M & R Payment.  Federal and state tax laws determine the tax treatment of the M & R Payment.      
2. Nothing in this Policy requires an M & R Payment or requires that the M & R Payment be as great as estimated or actual M & R Expenses.  An offer of an M & R Payment must meet the following criteria:
   1. The candidate is being appointed to fill an executive, administrative, or faculty position that satisfies the eligible employee criteria.
   2. The offer is deemed to be in the best interest of UMB because the candidate is recruited for a position that is difficult to fill or because a competitive compensation package for the position being filled includes an M & R Payment.
   3. Operational unit funds must be available and the M & R Payment must be consistent with UMB policy and procedures, or approved as an exception by the Chief Accountability Officer (CAO) for faculty or by the Chief Business and Finance Officer (CBFO) for staff.
   4. The terms and conditions of the M & R Payment must be documented.
   5. The offer must not exceed the estimated reasonable M & R Expenses for house-hunting and moving one household, one time, per eligible employee.  The offer may be less than the estimated M & R Expenses.
   6. In cases where more than one member of the household is an eligible UMB employee who receives an offer of employment that includes an M & R Payment, the maximum M & R Payment to both eligible employees must not exceed the highest approved M & R Payment that might be offered to one of the household members.  For purposes of compensation and tax reporting, the M & R Payment may be allocated between the eligible employees of the household if they so request and if each signs an appropriately completed Moving and Relocation Payment Agreement related to the payment made to that employee.
3. An M & R Payment is subject to the rules and limitations set forth in Financial Services (FS) Procedure – Payment to Assist an Employee Incurring Moving and Relocation Expenses (M & R Procedure).
4. School/department approvers may set a maximum for an M & R Payment to an eligible employee.  A School/department maximum may be lower than the M & R Payment suggested in UMB guidelines in the M & R Procedure. 
5. UMB reports each M & R Payment to the State of Maryland Central Payroll Bureau as required by law and State policy.
6. UMB will not authorize an M & R Payment to cover M & R Expenses that have been, or will be, paid directly by, or reimbursed to the employee by, another entity, a secondary employer, or UMB Affiliate. 
7. An employee who has received an M & R Payment will be required to refund it if any of the following occurs before the employee completes one year of service in the UMB position held upon appointment:   
   1. The employee requests and receives a transfer to another UMB department or requests and receives an employment status change (e.g. reduced hours, position change).
   2. The employee voluntarily leaves UMB employment.
   3. The employee is terminated for cause.
8. An employee is not required to reimburse any part of an M & R Payment that exceeds the employee’s M & R Expenses.

Eligible Employees:

In order for an employee to be eligible for an M & R Payment the following conditions must be satisfied:

1. The employee’s position must be in one of the following employee classes:
   1. Faculty
      1. Tenured – 01
      2. Non Tenured – 02, 03, 15
   2. Exempt Regular Staff - 33
2. The employee’s appointment must be expected to continue for at least one year.
3. The employee must intend to complete at least one year of service in the UMB position for which he or she is being appointed.
4. A current UMB employee who meets the conditions stated above may be eligible for an M & R Payment if the employee is offered a UMB position at a UMB Geographic Location other than the employee’s current Geographic Location, or the employee is appointed or promoted to a position at the same Geographic Location requiring the employee to be available to live proximate to the Location in order to fulfill the job expectations of the position at that Location.

Eligible Move:

To qualify for an M & R Payment, an employee must incur M & R Expenses relating to a move that meets the criteria set forth in the M & R Procedure, or must incur expenses approved by the CAO for faculty or by the CBFO for staff as an exception to those criteria. 

Moving and Relocation Payment:

An M & R Payment must comply with federal and state tax laws and related UMB policies and procedures, and must be offered to an eligible employee in connection with an eligible move.

Approval:

1. It is the responsibility of each department to obtain appropriate approvals before making an offer that includes an M & R Payment to a candidate. 
   1. Required approval for an M & R Payment to faculty is established by the individual schools.
   2. Required approval for an M & R Payment to staff is established by the UMB Department of Human Resource Services (HRS).   
2. The CBFO’s approval is required for any offer of an M & R Payment to staff if the offer is equal to or greater than $15,000 per household.  The CAO’s approval is required for any offer of an M & R Payment to faculty if the offer is equal to or greater than $15,000 per household. 
3. The President’s approval is required for an offer of an M & R Payment to a Dean, Vice President, or any other officer reporting directly to the President.  

Applies to:

UMB Employees

Authorized Affiliate Employees with fiscal authority or with responsibilities in the UMB employee recruitment process

Prospective UMB Employees

Definitions

Authorized Affiliate Employee - Person employed by an entity that has a relationship with UMB authorized by the Board of Regents or by law, e.g., faculty practice plan organizations, University of Maryland Baltimore Foundation (UMBF) and other affiliated foundations, recognized incorporated alumni associations, recognized affiliated business entities, University of Maryland Medical System/University of Maryland Medical Center, and other University System of Maryland institutions.  An Authorized Affiliate Employee is responsible for the administration and reporting of UMB resources.

Employee Class (empl class) -  A sub-category of employees that is used by the State of Maryland and USM to categorize employees based on common application of labor laws, fringe benefit eligibility,  and university or state policies. Every employee in the UMB payroll system is assigned to a specific empl class for each job the employee holds.

Scope and Exceptions

Scope

This Policy applies to an M & R Payment to compensate an employee expected to incur M & R Expenses for house-hunting and moving personal effects and household goods between locations within the United States of America.  The requirements stated in this Policy apply when an M & R Payment is being requested from UMB.

This Policy does not cover expenses incurred to:

• Interview at UMB.
• Move a laboratory or office.
• Relocate an expatriate employee to or from the United States.

Exceptions/Request Process

Exceptions to this Policy must be approved in writing by the CBFO.   Requests may be submitted to the University Controller using the Policy or Procedure Exception Form available on the Financial Services website.  Requests must be signed by the Dean/Vice President or the Dean’s/Vice President’s designee. 

Roles and Responsibilities

Downloads

See UMB Financial Services Procedure - Payment of Employee Moving and Relocation Expenses