When you get a move relocation reimbursement from your employer, make sure you’re getting the most from it. Often, your company will pay a portion of your moving expenses. However, if the company is not paying for the full cost of the move, it can be confusing and inconvenient for you. Here are a few tips to make the most of this benefit. First, make sure your company explains to employees exactly what they can expect from their relocation benefits. movers and packers local
Second, ask your employer for a moving relocation reimbursement. This type of reimbursement is typically given to employees directly. As such, it is considered income for tax purposes. But, the company will offset any tax liability with a gross-up, freeing up the actual cash you need to move. However, this kind of reimbursement can be difficult to estimate because of the unexpected expenses that you might face during the move. Make sure you estimate all your costs thoroughly before you begin the process.
Third, ensure that the University uses a standardized contract for moves. University employees can request reimbursement for moving expenses through the Human Resources Department. However, the University prefers to pay for relocation expenses through university-wide contracts. Relocation assistance includes shipping household goods, travel, and temporary housing. The reimbursement process requires an appointment with University Human Resources. Additionally, it’s important to communicate the details of your relocation to employees so that you don’t make costly mistakes.
As for calculating employee relocation reimbursements, you need to keep in mind that these payments are considered taxable income. As such, the amount that is reimbursed to your employees will appear on your W-2. Moving expenses incurred by an employee using a contracted moving company are considered taxable income, and the costs are not deductible on your personal income tax return. If you’re unsure of whether your relocation reimbursement is tax-deductible, ask your campus HR office for guidance and assistance.
Remember that moving relocation reimbursements must be included in your employees’ wages through 2025, and if the company pays for all of your expenses, it should be deductible. However, if the company only covers a portion of your moving expenses, you should request written confirmation from them so that you don’t miss out on any reimbursement. Furthermore, if you’re getting reimbursed for a portion of your moving expenses, you should keep all receipts for proper reimbursement.
A moving relocation package can cover a variety of costs, depending on the size of the relocation package. Many companies will cover a portion of your expenses, while others will pay for the entire relocation. Some companies even cover some expenses like packing household goods and selling an existing home. If you’re getting a relocation package from a new employer, be sure to negotiate it as much as possible. You’ll be much happier if you’re able to claim reimbursement for moving expenses and not just the transportation costs.