PURPOSE
The City of Chula Vista provides reimbursement for qualified relocation expenses to newly hired employees in eligible positions in order to attract a skilled workforce to provide quality services to the residents of the City and to make the City of Chula Vista an employer of choice.
ELIGIBILITY CRITERIA
• For Executive Management (EXEC), Senior Management (SM) and classifications designated as Hard to Fill in Human Resources Policy 218, an amount not to exceed $5,000 may be authorized for the actual and reasonable expenses incurred for the relocation of the employee and their immediate family to San Diego County.
• Requests for Relocation Allowance must be approved by the City Manager or their designee. The Director of Human Resources/Risk Management is designated as the approving authority for the City Manager. Relocation expenses are paid from funds allocated to the employing department. Employees hired into positions qualifying under this policy shall be required to sign a Relocation Expense Repayment Agreement to be eligible for relocation allowance.
• Approval for the relocation allowance must be received prior to a candidate receiving a final job offer and shall be included in the final job offer.
QUALIFIED EXPENSES
Qualified expenses are those expenses described in IRS Publication 521, Moving Expenses, under the section titled “Deductible Moving Expenses”, or most current IRS guidelines, if updated. Examples of such expenses are:
• Moving household goods and personal effects (including in-transit or foreign-move storage expenses)
• Traveling (including lodging but not meals) to your new home • Other reasonable and usual costs directly related to the relocation • Temporary housing (will be reimbursed subject to applicable taxes)
Any questions regarding qualified expenses should be directed to the Finance Department.
The City reimburses qualified expenses and will report amounts as required by the IRS on the employee’s Form W-2.
AUTHORITY:
Human Resources
SUBJECT:
RELOCATION
ALLOWANCE
POLICY #: 219
NEW POLICY: XX REVISED POLICY: N/A
SUPERSEDES: N/A
EFFECTIVE DATE:
10/21/2022
AUTHORITY:
Human Resources
SUBJECT:
RELOCATION
ALLOWANCE
POLICY #: XXX
NEW POLICY: XX REVISED POLICY: N/A
SUPERSEDES: N/A
EFFECTIVE DATE:
TBD
PROCEDURES
Human Resources Department – At the time of the recruitment request, Human Resources will determine, in consultation with the hiring department, if the position is EM, SM or qualifies as hard-to-fill. If determined to be qualifying and approved by the Director of Human Resources/Risk Management, the recruitment brochure will include a statement explaining the relocation benefit and applicable dollar limitations unless otherwise requested.
Hiring Department - The hiring department will confirm their ability and desire to pay relocation expenses prior to opening recruitment. The hiring department will discuss allowable expenses with the new hire at the time employment is offered and accepted and will have the candidate sign the Relocation Expense Repayment Agreement. The hiring department is responsible for maintaining payment records to ensure that cumulative, reimbursable expenses do not exceed the limitations set forth for the relocation allowance.
Candidate/New Employee – The candidate will arrange and pay for relocation services. As receipts for services are incurred, the employee will complete an Employee Relocation Expense Form, itemizing all expenses and submit it with all applicable receipts to his/her department within six (6) months of the date of hire in order to be considered.
Hiring Department –The department will complete the Employee Relocation Expense Form and submit it with the Appointing Authority’s signature, along with the receipts to Finance or Human Resources.
Human Resources Department - The hiring department will forward the completed form to the Director of Human Resources/Risk Management. The Director of Human Resources/Risk Management (or designee) will review and, if approved, forward request to the Finance Department for approval.
Finance Department – Will review expenses submitted and approve payment in accordance with City policy and IRS regulations. All claims for relocation allowance must be submitted within six (6) months of the date of hire in order to be considered.
REPAYMENT PROVISION
The City shall recover relocation costs paid to an employee who separates from the City for any reason prior to completing one year of service. The repayment amount will be prorated based on the number of full months worked by the employee.
Example: Employee is hired into a position on August 4 and receives $5,000 in relocation allowance. Employee resigns on April 18 from the City after completing 8 months and two weeks of service. Employee is responsible for repaying the City the equivalent of four months of relocation allowance.
The following formula reflects the calculation of the repayment amount:
1. Employee was eligible to receive $5,000 in relocation allowance, but only incurred $3,500 in actual expenses.
2. $3,500/12 months = $291.67 per month
3. Employee must repay four months’ worth of relocation allowance ($291.67 X 4) = $1,166.68
4. $1,166.68 would be withheld from the final check (guaranteeing at least minimum wage being paid to the employee for hours worked).
5. Any remaining balance will be invoiced to the employee and must be repaid to the City upon separation.
5. The employee must contact the Finance Department to arrange to repay any amount owed to the City.
The Director of Human Resources/Risk Management will have the sole authority and discretion to resolve any disputes or interpretations of the program.
RESPONSIBLE PARTY
Employee
Hiring Department
Director of Human Resources/Risk Management
Finance
RELATED POLICIES
218 Referral Program for Hard to Fill Positions
REFERENCE
Hard To Fill Positions List
Internal Revenue Service Publications 15, 15-B, and 521 H.R.1-Tax Cuts and Jobs Act (2017), Sec. 11048 and 11049
FORMS
Employee Relocation Expense Form
Relocation Expense Repayment Agreement
AUTHORITY:
Human Resources
SUBJECT:
RELOCATION
ALLOWANCE
POLICY #:XXX
NEW POLICY: XX REVISED POLICY: N/A
SUPERSEDES: N/A
EFFECTIVE DATE:
TBD
Director of Human Resources/Risk Management Date