| Topic Name: |
relocation |
| Message Name: |
If the company pays |
| Date Posted: |
09/29/2000 |
| In Reply To: |
When companies offer to pay for a candidate's relocation, what do reimbursement expenses include and how much do companies generally pay for? Should we simply reimburse the receipts as an expense or does the payment count as taxable income that should go on a W-2? I'm not sure how any of this is structured.
(We're a small company hiring an employee from across the country and we've never had to do this before...)
Thanks,
Liss
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| Message: |
If the company pays direct expenses for the employee, I believe it can happen in different ways. One way is to pay directly to the employee a set "fee", say $2000 for moving costs. This would be taxable. If the company pays for certain items, and pays directly, I believe this to be a company expense and not taxable for the employee. It also depends how the company is set up, and what type of company it is. As a general guide, if an employee receives any money from an employer, it will be taxed, maybe not when they get it, but definately at the end of the year. Best idea is to ask your accountant who is familiar with how your company is set up.
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