Moving expense payment is governed by the NDCC Chapter 44-08-04.3 and the North Dakota SBHE Policy #806.3.  Tax treatment is determined by Internal Revenue Service regulations. Tax update as of 1/1/2018 - all moving payments are taxable.


Moving expense payments may be paid when staff are initially hired from outside the university system.  Permanent staff, employed for one year or more, may be eligible for reimbursement when, at the direction of the employer, are transferred to a new work location within the university system.  In addition, the total reimbursement limit for permanent employees transferred within the system is $5,000. 


IRS regulations require the university to withhold income tax, social security tax and Medicare tax from moving expense payments.   It is the employee's responsibility to contact the Payroll Office to discuss options available for W-4 changes, which determines the taxable rate used to calculate the withholding. Moving payments at VCSU are processed as a lump sum through payroll if approved by assigned department using a Personal Action Form. A signed written agreement between the institution and the employee should specify the lump sum payment and should not exceed one month's salary or an amount approved by the president or designee. 


 

Payment Amount Distance
One half of one month's salary 125 miles or greater
One quarter of one month's salary 51-124 miles
No payment 50 or less