Relocation Allowance Payment Guidelines and Form The following guidelines list the steps and related information to process a request for Relocation Allowance Payments through Payroll Services. Page 2 of this document is the form departments will complete and submit to Payroll Services for the payment request. No supporting documentation is required as an attachment to the form. 1. Submit the required payment form called “Relocation Allowance Payment” (Page 2 of this document). 2. Relocation allowances will be processed after an employee has received their first payroll for employment. 3. All employee relocation expenses must be paid from local funds. No state funds may be used. 4. Payments will be processed on the next scheduled pay date. 5. Federal Income Tax will be computed at the 22% supplemental payment rate in addition to FICA deductions at 7.65% a. The payment request form allows the department to determine if the payment is to be “Grossed‐ Up” for tax purposes. This is not a requirement. 6. IRS considers allowances as Wages and therefore will be reported in Box 1 on their W‐2. 7. Relocation Allowance Payments are not subject to retirement in accordance with Texas Administrative Code Chapter 25.6(a)(5)(A). 8. No payments will be made directly to moving companies, hotels, or any other vendors providing moving, travel or house hunting services. This restriction is applicable to payments made on the payment or travel cards. 9. Receipts are not required for ‘allowances’. 10. The payment of Relocation Allowance Payments has no impact on temporary housing, which is already processed as taxable. PAYROLL SERVICES

Relocation Allowance Payment Guidelines and Form · 2020-03-07 · Relocation Allowance Payment Guidelines and Form The following guidelines list the steps and related information

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RelocationAllowancePaymentGuidelinesandForm

The following guidelines list the steps and related information to process a request for RelocationAllowance Payments through Payroll Services. Page 2 of this document is the form departments willcomplete and submit to Payroll Services for the payment request. No supporting documentation isrequiredasanattachmenttotheform.

1. Submittherequiredpaymentformcalled“RelocationAllowancePayment”(Page2ofthisdocument).2. Relocation allowances will be processed after an employee has received their first payroll for

employment.3. Allemployeerelocationexpensesmustbepaidfromlocalfunds.Nostatefundsmaybeused.4. Paymentswillbeprocessedonthenextscheduledpaydate.5. FederalIncomeTaxwillbecomputedatthe22%supplementalpaymentrateinadditiontoFICA

deductionsat7.65%a. Thepaymentrequestformallowsthedepartmenttodetermineifthepaymentistobe“Grossed‐

Up”fortaxpurposes.Thisisnotarequirement.6. IRSconsidersallowancesasWagesandthereforewillbereportedinBox1ontheirW‐2.7. RelocationAllowancePaymentsarenotsubjecttoretirementinaccordancewithTexas Administrative

CodeChapter25.6(a)(5)(A).8. Nopaymentswillbemadedirectlytomovingcompanies,hotels,oranyothervendorsproviding

moving,travelorhousehuntingservices.Thisrestrictionisapplicabletopaymentsmadeonthe paymentortravelcards.

9. Receiptsarenotrequiredfor‘allowances’.10. The payment of Relocation Allowance Payments has no impact on temporary housing, which is

alreadyprocessedastaxable.

PAYROLL SERVICES

Page 2: Relocation Allowance Payment Guidelines and Form · 2020-03-07 · Relocation Allowance Payment Guidelines and Form The following guidelines list the steps and related information

NOGROSSUP

RelocationAllowancePaymentPrivacyNotice:StateLawrequiresthatyoubeinformedthatyouareentitledto:(1)requesttobeinformedabouttheinformationcollectedaboutyourselfonthisform(withafewexceptionsasprovidedbylaw);(2)receiveandreviewthatinformation;and(3)havetheinformationcorrectedatnocharge.Torequestthisinformation,contactthePayrollOfficeusingtheinformationatthebottomofthisform.INSTRUCTIONS:This form is to be used in computing payments to employees for relocation purposes. Complete the highlighted fields below.Departmentswhoarepayingthetaxesonbehalfoftheemployeewillnote"Yes"usingthe"DepartmentPaysTaxes"boxbelow.StateFundsmaynotbeused.PaymentswillbemadeviapapercheckunlessaDirectDepositFormisonfile. Nosupportingdocumentationisrequiredasanattachmenttothisform.

NOTE:

TheonlydeductionstakenareFITat22%,OASIat6.2%,andOAHIat1.45%.UIN LastName First Name PIN PayCode

SystemPart AccountNumber(StateFundsmaynotbeused) SupportAccount AccountingAnalysis ObjectCode

1926

PaymentAmount

DepartmentPaysTaxes?

GrossUpAmountifDeptpaystaxes(CheckifYes)

NO GROSS UP

COMMENTS:

UnitHeadSignature Administrative Signature

Date Date

SRSSignature–requiredifusinggrantfunds