1270.1 - Procedure for Employee Relocation Compensation



Due to legislation changes in the 2017 Tax Cuts and Jobs Act which reinstated personal moving expense payments as taxable wages, the University has changed the payment procedure so that the payment and tax implications are contemporaneous.

Scope of Applicability

The University of North Carolina at Chapel Hill Procedure for Employee Relocation Compensation applies to departments who are engaging in the recruitment of highly qualified and/or highly recruited individuals and issuing payment to relocate the individual for initial employment.


Departments should submit the payment request with corresponding documentation including the appointment letter which states the payment amount via the Relocation Compensation lump sum payment ePAR form. The ePAR should be submitted after the new hire action has executed, utilize the first day of the current pay period, and use account 517140. The work period start and end date should be the same date as the payment date. The Relocation Compensation payment is assumed to be inclusive.

In rare cases, other taxable reimbursements are agreed to in the offer letter or contract. These payments should be submitted after the employee's start date and follow the Relocation Compensation lump sum process, use the Relocation Compensation lump sum ePAR, and be paid on account 517140. In the ePAR comment section, specify which type of expense is being reimbursed and include an attestation that the employee is moving from a city that is 50 miles or more from Chapel Hill and satisfies the criteria of the relocation compensation policy. An example of an acceptable attestation is: "<Employee Name> is moving from <City, State> to Chapel Hill, NC.  This move is 50 miles or more from their existing residence and satisfies criteria of the relocation compensation policy."  An ePAR that does not contain a relocation attestation statement will be returned to the department.  A copy of the appointment or offer letter in which the relocation compensation was agreed must be attached to the ePAR if it has not been previously uploaded to ConnectCarolina.  

Regardless of the amount submitted via an ePAR, the employee should not expect to net the amount submitted via receipts due to tax considerations. Due to the tax impact, employees can net significantly less than the original expense.

Related Data

Instructions for creating an ePAR may be found on the ConnectCarolina website.

Related Requirements

External Regulations and Consequences

University Standards and Procedures

Contact Information

Primary Contacts
Office Telephone Email
Payroll Services 919-962-0047 payroll@unc.edu
University Controller 919-9621370 controller@unc.edu
100% helpful - 1 review
Print Article


Article ID: 131455
Thu 4/8/21 9:09 PM
Wed 5/24/23 10:29 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Director of Payroll Services
Next Review
Date on which the next document review is due.
04/14/2025 12:00 AM
Last Review
Date on which the most recent document review was completed.
04/12/2023 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
10/08/2021 12:00 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
10/11/2021 12:00 AM
Date on which the original version of this document was first made official.
12/10/2010 11:00 PM