Relocation Expenses Policy

Effective January 1, 2027, all relocation payments must be processed as additional compensation through Payroll using the REL earn code. This approach provides a consistent mechanism for capturing relocation payments as taxable compensation and supports appropriate tax withholding, payroll reporting, and University-wide administration. Federal tax law generally requires employer-paid moving expenses to be treated as taxable income to the individual. Employees receiving lump sum relocation payments through Payroll must not submit relocation expense reimbursement requests through Concur or request payment directly to a vendor. All relocation payments must be processed through the University’s payroll system.

 

 

 

Reason(s) for the Policy

Effective January 1, 2027, Columbia University is standardizing the processing of all relocation assistance. All relocation payments beginning January 1, 2027, should be processed as additional compensation through Payroll using the REL earn code. This approach provides a consistent mechanism for capturing relocation payments as taxable compensation and supports appropriate tax withholding, payroll reporting, and University-wide administration. Federal tax law generally requires employer-paid moving expenses to be treated as taxable income to the individual. 

Responsible University Office & Officer

Office of Human Resources & Office of the Controller 

Revision History
 
Who is Governed by This Policy

This policy applies to all Columbia University schools, centers, institutes, departments, and administrative units that provide University-approved relocation assistance to employees.

Who Should Know This Policy

It is the responsibility of all University employees to review and understand this policy.

1. Purpose

Effective January 1, 2027, Columbia University is standardizing the processing of all relocation assistance. All relocation payments beginning January 1, 2027, should be processed as additional compensation through Payroll using the REL earn code. This approach provides a consistent mechanism for capturing relocation payments as taxable compensation and supports appropriate tax withholding, payroll reporting, and University-wide administration. Federal tax law generally requires employer-paid moving expenses to be treated as taxable income to the individual. 

Employees receiving lump sum relocation payments through Payroll must not submit relocation expense reimbursement requests through Concur or request payment directly to a vendor. All relocation payments should be processed through the University’s payroll system.

2. Scope

This policy applies to all Columbia University schools, centers, institutes, departments, and administrative units that provide University-approved relocation assistance to employees.

3. Policy

Employer-paid relocation benefits are fully taxable under federal law, whether reimbursed directly to an individual or paid to a vendor on the individual’s behalf. Accordingly, to ensure consistent tax treatment, accurate payroll reporting, and proper Form W-2 reporting, all taxable relocation payments should be processed through payroll rather than through reimbursement mechanisms requiring subsequent tax imputation.

4. Eligible Payments

Eligible relocation expenses may include moving expenses, temporary housing, travel associated with relocation, lease termination costs, and other approved relocation expenses in accordance with the University's Relocation Policy. 

5. Payment Process

All relocation payments should be processed through the University’s payroll system as additional compensation to ensure proper tax treatment and reporting. Relocation payments should be paid using the REL earn code and are fully taxable to the recipient but will not be subject to a fringe charge.

6. Tax Treatment

Relocation payments are taxable additional compensation and will be subject to applicable federal, state and local taxes using the appropriate supplemental withholding rates. Employees are encouraged to consult their personal tax advisor regarding the tax implications of these payments. 

7. Repayment of Relocation Assistance 

If required by the employee's relocation agreement or offer letter, employees who voluntarily leave the University or are terminated for cause within the applicable repayment period may be required to repay all or a portion of the relocation assistance received.

8. Exceptions

Exceptions to this policy are allowed for certain appointments that require more personalized relocation support. For all other appointments, exceptions will require written approval from Department Chair/Director and the Dean’s Office (for academic units) or Unit’s Executive leadership (for administrative units). 

9. Questions 

Questions regarding this policy should be directed to the HR/Finance Service Center.