TAX season is here…well, the deadline is near. Is your company operating off of a lump sum program for your employees relocation’s? Do those employees understand the tax implications when they take that lump sum?
Employees need to understand that taking the lump sum for moving is fully taxable as earnings. Some employers “gross up” that lump sum to take care of those taxes…or most of them, but not all employers do this, and employees need to understand what their responsibility is when it comes to taxes.
Having a direct bill with your relocation provider is usually the best situation for many reasons.
1. Household goods provider is loyal to you as their client
2. Replacement valuation is provided at no charge normally.
3. You are not just another number.
4. Employees are not spending all their time getting estimates and evaluating moving companies.
5. Your provider will be there when all others book up while in the summer season.
There are many reasons to work with a provider directly for all your relocation needs, and making sure you understand the tax laws is most important!
-Kelly