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Relocation Allowance

Standing Authorization Regarding Relocation Allowances Memo

Non-Salary & Deferred Compensation Form 

Policy 05.15.03 Non-Salary and Deferred Compensation 

Effective January 1, 2018 moving expense reimbursements are fully taxable as income. As a result of this change to the tax law, NC State is providing the following relocation allowance guidelines to provide greater flexibility to the University and its employees. The following information includes updated procedures and requirements for the awarding and processing of approved relocation allowance payments to EHRA employees. Relocation allowances granted must comply with POL 05.15.03 (Non-Salary and Deferred Compensation), be authorized in advance, and paid from non-state-appropriated funds.

In order to encourage the recruitment of talented employees to the University, NC State allows the payment of three types of relocation expenses: household moving expenses; house hunting expenses; and temporary housing. All three types of expenses will be covered under one relocation allowance.


  • Household Moving Expenses:  An allowance to cover costs for movement of household goods and personal effects of the employee and their immediate family.
  • House Hunting Expenses:  An allowance to cover employee travel and subsistence for up to a maximum of 4-days/3 nights, for the purpose of house-hunting with family.
  • Temporary Housing:  An allowance for the cost of temporary housing is authorized for top executive officers (JCAT 1A), senior institutional/chief functional officers (JCAT 1B), tenured full professors (JCAT 200), head coaches (JCAT 498) and assistant coaches (JCAT 499).


The Chancellor, Executive Vice Chancellor and Provost, Vice Chancellor, or Athletic Director may authorize relocation allowances (up to the designated limits shown in section D) as part of an initial appointment offer for permanent full-time tenured, tenure-track, non-tenure track faculty; coaches, assistant coaches, assistant/associate athletic directors; and other EHRA non-faculty employees.


  1. Allowances for moving and house hunting expenses are now fully taxable to the employee. Human Resources, Accounts Payable, and Payroll will no longer require supporting documentation or receipts, other than the Non-Salary and Deferred Compensation Form, when submitting a relocation allowance request to be paid to the employee.
  2. Key considerations in determining relocation allowances should include geographic origin of the move and distance to Raleigh (or other primary work location), unique household circumstances, or other market considerations. In determining the allowance, however, units should give consideration to the taxable nature of these payments. Since the allowance includes house hunting, moving household goods, and temporary housing, prudent consideration should be given as to the estimated expense for all items.
  3. When submitting a hiring proposal that includes a relocation allowance, the hiring department should complete and obtain approvals of the Non-Salary and Deferred Compensation Form at that time. The offer letter and addendum will need to reflect the relocation allowance and acknowledgement of the possible repayment. The Non-Salary and Deferred Compensation Form must be completed and approved as required prior to requesting payment through the Accounts Payable system.
  4. All relocation allowances will be paid by Accounts Payable electronic funds transfer or direct deposit. Allowances can be broken into incremental payments in order to better match employee and departmental circumstances, or may be paid in one lump sum. All amounts will be included as imputed income by the Payroll Department, and payroll taxes will be deducted in the employee’s next paycheck(s).
  5. To pay the relocation allowance to the employee, the hiring department will enter a voucher(s) using the completed Non-Salary and Deferred Compensation Form as backup documentation for the voucher(s). No vouchers will be processed without a properly completed and approved Non-Salary and Deferred Compensation Form. Funding for all allowances must be non-state funds using account code 51530 and category ID NA25.
  6. Relocation allowances should only be paid to an employee and not on behalf of an employee with a P-card or NCSU Marketplace, NCSU Purchase Order, or directly to a vendor.
    • If such payments are discovered, the expense will be added to the employee’s wages after-the-fact and the department will be responsible for providing backup documentation with exception approvals in accordance with NCSU policies.
    • The employee will be responsible for related federal and state income and FICA tax withholdings, which will be deducted from the employee’s regular pay.
  7. It is the responsibility of the hiring department to maintain a copy of the Non-Salary and Deferred Compensation Form and to ensure that the employee is paid the appropriate amount, even if completed in installments.


Relocation allowances are available for full-time, permanent SAAO-I, SAAO-II, EHRA faculty (tenured, tenure-track, non-tenure track), and EHRA non-faculty positions.


The following relocation allowances, as designated by the Chancellor, are the maximum amounts permitted. Not every offer/appointment is intended or required to include such payment and its inclusion should be based on business necessity to attract well-qualified candidates, and contingent upon the availability of funds. These amounts are the maximum amount to be paid, not the minimum or expected amounts. Any exceptions to these maximum amounts require pre-approval from the appropriate supervising management level, i.e., Chancellor, Executive Vice Chancellor and Provost, or supervising Vice Chancellor.

SAAO Tier 1$25,000
SAAO Tier 2$20,000
Other Non-Faculty EHRA$10,000


Exceptions to the eligibility requirements and/or approved maximum rates require pre-approval from the appropriate management level, i.e. Chancellor, Executive Vice Chancellor and Provost, or supervising Vice Chancellor. Exception payments will be limited to the actual amount of relocation expenses incurred, up to the designated exception amount, supported by receipts.


Employees that separate (either voluntarily or involuntarily) from University employment prior to one year of completed employment may be required to fully reimburse the University at the gross amount of any allowance received. The employee will work with the hiring department to determine the amount to be repaid. It will be the responsibility of the hiring department to collect any required reimbursement of relocation expenses from the employee. Repayment should be made directly to the department outside of the payroll system. No tax withholding or reporting adjustments will be made by the Payroll Office. The employee will need to consult their tax professional for advice on including the excess tax as part of their Federal Income tax filing for the year to recoup taxes paid.