Expenses for Recruiting, Relocation, Housing Assistance

• Recruiting Expenses
• Relocation Expenses
• Housing Assistance/Temporary Housing
• Frequently Asked Questions

Recruiting Expenses

Recruiting Expenses consist of spending pre-approved by the hiring department for expenses of an individual seeking faculty or staff employment with Loyola University Chicago (LUC) and incurred by the candidate during the employment interview and selection process.  Such expenses may include airfare, hotel, meals, ground transportation, etc.  All Recruiting Expenses must be reasonable and necessary as determined by LUC.  During the recruiting process, travel expenses of a candidate’s travel companion (spouse, family, friends etc.) will not be paid for or reimbursed by LUC.

1. Recruiting Expenses paid directly by LUC (Preferred Method): Refer to Book for a Guest for instructions).  For cost efficiency, it is strongly encouraged that the hiring department make travel arrangements on behalf of the candidate including:

• • Purchasing airline tickets for the candidate using Egencia and paying using a University ProCard
  • Using LUC owned properties instead of hotel accommodations (Loyola Flats, Baumhart Suites, etc.) to the extent possible.
    • If LUC owned properties are not available, the department should still make the hotel reservation in Egencia. Refer to “Book for a Guest” for instructions.
  • Coding transactions to the Appropriate Accounting Unit and Account 6315 Recruiting Expenses – Faculty/Staff
  • Documenting the expense by noting the position for which the candidate is interviewing, the dates of the interview, name of the candidate, etc.

2. Recruiting Expenses paid by the candidate: For situations where the expenses are not paid by LUC but instead are paid directly by the candidate, and the candidate is pre-approved for reimbursement of Recruiting Expenses, the hiring department will need to do the following:
   • Prior to the interview:
     • Inform the candidate of the maximum amount they may incur and
     • Inform the candidate to retain their receipts.
     • Invite the candidate to complete an Electronic Form W-9/W8.
   • After the interview:
     • Obtain from the candidate all documentation (detailed receipts, etc.) in support of the payment (consistent with LUC’s Travel & Business Expense Policy)
     • Complete a Payment Requisition including:
       • Supporting documents (detailed receipts, etc.)
       • Coding to the appropriate Accounting Unit and Account 6315 Recruiting Expenses – Faculty/Staff
       • Description of the business purpose including the position for which the candidate is interviewing, the dates of the interview, name of the candidate, etc.
       • Appropriate approvals
     • Submit the Payment Requisition to LUC’s Accounts Payable Department

Tax Notes:  For payments which represent a direct reimbursement of a candidate’s documented expenses, LUC is not required to issue any tax form to the candidate.  Offering a “flat amount” to a candidate without requiring receipts and/or submitting a payment requisition without sufficient supporting documentation will require that LUC issue the appropriate tax form to the candidate.

Relocation Expenses

Note:  This section addresses relocation expenses of an LUC employee, including members of their household and their personal effects.  Relocation of an employee’s lab or research equipment to LUC from another University or elsewhere is outside the scope of this policy.

Relocation Expenses consist of spending pre-approved by the hiring department for reimbursement to individuals who have accepted an offer of employment with LUC and who are required by LUC to relocate in order to perform their job responsibilities.  While many factors can influence a decision to offer Relocation Expenses, in terms of distance, generally the new residence must be greater than 50 miles from the former residence.

The allowable maximum amount of the Relocation Expense must be included in the employment offer letter signed by the appropriate University representative. If the amount is not documented in the initial employment offer letter, the hiring department is responsible for executing an addendum to the employment offer letter signed by the appropriate University representative.

All Relocation Expenses must be reasonable and necessary as determined by Loyola Chicago.  Relocation Expenses as described in the employment offer letter may include:

• moving of household goods and personal effects, including, but not limited to, packing, shipping, storage, and delivery of household items,
• travel (airfare, mileage, meals while traveling during the relocation, hotel) incurred during the relocation process.
• house hunting trip travel expenses

Relocation Expenses do not include security deposits paid or lost, lease break fees, improvements to the former residence to prepare for sale or other maintenance, real estate commissions, purchases of appliances, furniture, fixtures, expenses of relocating or boarding of household pets, other expenses as determined by LUC.  Housing Assistance/Temporary Housing is NOT considered a Relocation Expense. Please refer to the section “Housing Assistance/Temporary Housing”, below.

1. Relocation Expenses paid directly by the Employee (Preferred method): As each relocation is unique, Relocation Expenses are generally arranged and paid directly by the employee and then submitted for reimbursement after their employment with Loyola has started.  An employee seeking reimbursement for Relocation Expenses should proceed as follows:

• • Complete an Employee Expense Reimbursement Form including:
    • The excerpt from the employment offer letter pertaining Relocation Expense.
      • All other employment terms should be redacted.
    • Detailed receipts showing the nature of the expenses incurred and amounts
    • Coding to the appropriate Accounting Unit and Account 5955 - Relocation Expense.
    • Appropriate business purpose description including a description of the relocation (moving to X location from Y location).
    • A statement showing that the cumulative amount of Relocation Expenses submitted by the employee or paid by LUC on behalf of the employee is less than or equal to the allowable amount indicated in the employment offer letter.
    • Appropriate approvals
      • The approver is typically noted in the employment offer letter.
  • Submit the Employee Expense reimbursement to payables@luc.edu (LUC’s Accounts Payable Department). In accordance with IRS guidelines, reimbursement requests should be submitted within 90 days of the date the expense was incurred.

2. Relocation Expenses paid by LUC on behalf of an employee: While less common, in situations where the hiring department is involved in making relocation arrangements on behalf of the employee, the hiring department will need to:

• • Purchase airline tickets using Egencia and pay using a University ProCard
  • Follow all other University policies (Contract Policy, Accounts Payable, ProCard, etc.)
  • Ensure that the Relocation Expenses are coded to the Appropriate Accounting Unit and Account 5955 - Relocation Expense
  • Ensure that the employee’s name and relocation details (moving to X location from Y location, dates, etc.) are visible on the supporting documentation and included in business purpose description.

Tax Notes:  Per current IRS regulations an employer’s direct payment of and/or reimbursement of Relocation Expenses is considered taxable income to the employee. The amount of any Relocation Expenses paid, whether directly by LUC on behalf of an employee or as an expense reimbursement to the Loyola employee, is income to the employee.  LUC will include the amount of the Relocation Expense on the employee’s paystub as imputed income.  Payroll taxes (federal, state, FICA, etc.) will be withheld in the period when this occurs and will reduce the employee’s net pay during the payroll period.  The Form W-2 issued by LUC to the employee will include both the imputed income as well as the taxes withheld.

Housing Assistance/Temporary Housing

Housing Assistance is spending pre-approved by the hiring department for temporary housing, generally in conjunction with a relocation, in order to assist with timely start of employment at LUC and to afford the employee the opportunity to identify and secure a more permanent residence.

The allowable maximum monthly value  and duration of Housing Assistance must be included in the employment offer letter signed by the appropriate University representative. If Housing Assistance is not documented in the initial employment offer letter, the hiring department is responsible for executing an addendum to the employment offer letter signed by the appropriate University representative.

All Housing Assistance must be reasonable and necessary, as determined by LUC.

1. Housing Assistance provided by or paid directly by Loyola (Preferred method): It is strongly encouraged that Loyola provide the Housing Assistance/Temporary Housing accommodations for the employee at a Loyola owned property (Loyola Flats, Baumhart Suites, etc.).  When making such arrangements, the hiring department will need to:

• • Ensure that Loyola Lodging/The Flats are aware that the reservation is for an LUC employee, including the employee’s name.
  • Ensure that Loyola Lodging/The Flats know to code the stay to the appropriate Accounting Unit and Account 5956 - Housing Allowance Benefit.
    

2. Housing Assistance paid directly by the employee: For situations where the Housing Assistance is not provided or paid directly by LUC but instead is paid by the employee, the employee needs to do the following in order to receive reimbursement:

• Complete an Employee Expense Reimbursement Form including the following:
  • Excerpt from the employment offer letter pertaining to Housing Assistance.
    • All other employment terms should be redacted.
  • Detailed receipts showing the expense incurred, including amounts and dates
  • Appropriate Accounting Unit and Account 5956 - Housing Allowance Benefit.
  • Appropriate business purpose description such as “Temporary Housing per Employment Letter”
  • Appropriate approvals
    • • The approver is typically noted in the employment offer letter.
• Submit the Employee Expense reimbursement to payables@luc.edu (LUC’s Accounts Payable Department)

Tax Note:  Per current IRS regulations an employer’s direct payment of and/or reimbursement of Housing Assistance/Temporary Housing is considered taxable income to the employee. The amount of any Housing Assistance/Temporary Housing, whether provided directly by LUC or as an expense reimbursement to the Loyola employee, will be included as income to the employee and will appear on the employee’s paystub as imputed income.  Payroll taxes (federal, state, FICA, etc.) will be withheld in the period when this occurs and will reduce the employee’s net pay during the payroll period.  The Form W-2 issued by Loyola to the employee will include both the imputed income as well as the taxes withheld.

Frequently Asked Questions