In rare instances, it is appropriate for relocation expenses to be covered for a faculty or professional staff member who is relocating to work at Drexel. In such a situation, approval must be requested to the Provost Office for faculty members and Human Resources for professional staff members before relocation expense coverage can be offered.

Effective January 1, 2018, under the Tax Cuts and Jobs Act, all employer-paid relocation expenses must be reported as taxable income. Relocation expenses may be covered through a one-lump sum or through reimbursement up to a specific dollar amount. Both allowances are taxable and will be issued through Payroll.  The relocation expenses must be addressed in the faculty or professional staff member’s offer letter, stating the method of coverage. A supplemental pay form must be submitted for both the one-lump sum and the reimbursement of expenses. See below for process details.

Some suggested relocation resources are provided on the Drexel HR website. Please be aware that Drexel will no longer engage vendors on behalf of the employee for relocation services. Payment for relocation services should not be processed through Procurement Services, Accounts Payable, SmartSource, or P-card.

One-Lump Sum Relocation Expense Payment Process

1. Department receives approval from the Provost office/HR that they may offer a one-lump sum relocation expense payment
2. Department specifies in the faculty or professional staff member’s offer letter that relocation expenses will covered through a one-lump sum payment
3. Department Business Administrator submits a completed supplemental pay form, with copy of the offer letter, to Human Resources for review
4. Once approved, Human Resources will forward the form to Payroll for processing. Once processed, the individual will receive the payment via check mailed to their home address
   1. If the individual has not started working yet, they must complete a new hire packet. Once processed, a check will be mailed to their home address.

Relocation Expense Allowance Reimbursement Process

1. Department receives approval from the Provost office/HR that they may offer relocation expense reimbursement
2. Department specifies in the faculty or professional staff member’s offer letter that relocation expenses will be disbursed through a relocation allowance up to a specific dollar amount
3. Department Business Administrator submits a completed supplemental pay form, with appropriate receipts attached, to Human Resources for review
4. Once approved, Human Resources will forward the form to Payroll for processing. Once processed, the individual will receive the payment via check mailed to their home address.
   1. If the individual has not started working yet, they must complete a new hire packet. Once processed, a check will be mailed to their home address.

Additional resources

IRS Tax Reform

SHRM Summary of Tax Bill for Employee Benefits