Relocation Expenses Recommendations
For Tenure-Line Faculty Employees:
Typically, if the faculty member is relocating from outside the Centre Region (>50 miles), relocation expenses may be considered during the offer letter negotiations and must be consistent with HR 104, which requires dean approval. Typically, these expenses are paid up to $10,000.
For Full-Time Staff Employees:
Typically, full-time staff employees are not offered relocation expenses as part of their hiring package. However, if the individual is relocating from outside the Centre Region (>50 miles), the dean may authorize relocation expenses consistent with HR 104. Typically, these expenses are limited to less than $5,000.
For Postdoctoral Scholars and Non-Tenure-Line Faculty Employees:
Typically, postdoctoral scholars and non-tenure-line faculty are not offered relocation expenses as part of their hiring package. However, if the individual is relocating from outside the Centre Region (>50 miles), the dean may authorize relocation expenses consistent with HR 104. Typically, these expenses are limited to less than $5,000.
Special Rules for charging relocation expenses to a Sponsored Research Award
When hiring a postdoc or non-tenure-line faculty to work on a sponsored research project, it is sometimes necessary to offer reimbursement of relocation expenses to attract the best (most qualified) candidate in a highly competitive field. Per Uniform Guidance (2 CFR 200), “Relocation costs are allowable” as long as “reimbursement to the employee is in accordance with an established written policy consistently followed by the employer.” To comply with Federal Regulations and HR104, the dean may authorize charging relocation expenses to a sponsored award if all the following conditions are met:
- The amount of relocation expenses charged to the sponsored award is directly proportional to the percent of effort the postdoc or non-tenure-line faculty is budgeted to work on that particular project;
- The postdoc or non-tenure-line faculty stays employed with the University and working on that project for at least 12 consecutive months;
- The department has deemed the offering of relocation expense reimbursement necessary to secure the employment of the qualified candidate;
- The dean or budget executive has provided written approval for relocation expense reimbursement to be part of the official offer;
- The EMS Research Office has reviewed the terms and conditions of the award and determined there are no limitations or restrictions regarding reimbursement of relocation expenses.
Allowable Relocation Expenses
- Costs of transportation of the employee, members of his or her immediate family and his or her household, and personal effects to the new location
- Costs of finding a new home, such as advanced trips by employees and spouses to locate living quarters and temporary lodging during the transition period, up to a maximum period of 30 calendar days
Unallowable Relocation Expenses
- Fees and other costs associated with acquiring a new home
- A loss on the sale of a former home
- Continuing mortgage principal and interest payments on a home being sold
- Income taxes paid by an employee related to reimbursed relocation costs
Maintenance of Receipts
- Each department including relocation expenses within their offer letters must maintain any receipts provided by the relocating employee
- These do not need to be uploaded into Workday, just maintained in the department
- If charging a sponsored award, receipts will be required by the Finance Office prior to approval of the Workday one-time payment
- Receipts should be maintained for at least 3 years
References:
Federal Guidelines under Uniform Guidance (2 CFR 200) – Part 200.464 – Relocation costs of employees
Penn State GURU Policy HR104 – Payment for Relocation Expenses
Last updated: August 10, 2023 (changed ‘Fixed Term’ to ‘Non-Tenure-Line’)