| Topic Name: |
relocation |
| Message Name: |
relocation expenses |
| 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
|
| Message: |
We have relocated numerous employees, initially we offered the employees a choice.
1- A bonus (sort of like a sign on bonus) that the person would get on their first check in the amount of $____. (forewarning them of how it would be taxed)
2-They could save all of their receipts and be reimbursed up to $_____. The only problem with this is that certain items can be reimbursed as relocation and certain items cannot. Your accounting or payroll person should know this. If you want more specific guidelines, you can go to the IRS' web page and look up Publication 521 for Moving Expenses.
Over the course of a year (and relocating approximately 30 employees), we found that 9 out of 10 preferred to paid up front. We now do the bonus structure unless it is an executive level person with a sizeable move. (We have a direct bill system set up for larger moves with moving services.) Just a side note, many times there should be relocation services near you that will offer you or your new employee discounted services.
|
|
