May 15, 2018

Recruitment and Relocation (Expenditures)

This policy is to ensure that university funds allocated toward recruitment and relocation are appropriately approved by the hiring department and processed in compliance with university policies and local, state, and federal requirements.

Recruitment

Expenses associated with recruiting a new employee are considered reimbursable business expenses and must comply with the university expense policies.

Recruitment status

Until the candidate has accepted the position, the candidate is on recruitment status.

Tax implications

Recruitment expenses are not taxable.

Relocation

All or part of new faculty or staff members’ relocation expenses may be paid for or reimbursed by the university, when such incentive helps the university attract highly qualified candidates.

Eligibility

Eligibility for payment of relocation expenses is determined by the hiring department, and may be extended to include dependents, spouses, and/or significant others. Eligibility is not based on position or title, but is based on the department’s need to use such payment as a recruitment tool.

Relocation status

Once the candidate has accepted the position, the candidate is no longer on recruitment status. This is defined as the point when the candidate has returned to the university the countersigned employment offer letter and all other required employment documents (i.e., arbitration and at-will agreements).

Post-acceptance expenses, such as travel expenses to find a new home or moving expenses to transfer to the new location, are considered relocation expenses.

Amounts and package

Relocation amounts and package are determined and funded by the hiring department.

Approvals

Relocation eligibility, amounts, and package must be approved by at least one level up from the position being filled and by the applicable VP/dean or SBO.

Tax implications

Relocation expenses may be taxable. Under the Tax Cuts and Jobs Act of 2017, the personal deduction for moving expenses and exclusion from income of employer-paid moving expenses are suspended from January 1, 2018 through December 31, 2025.

Responsible offices

Business Services
https://businessservices.usc.edu
(213) 740-2281

Office of the Comptroller
https://comptroller.usc.edu
(213) 821-1900

Issued by

James M. Staten, Senior Vice President, Finance and Chief Financial Officer
University of Southern California