December Mobility Survey

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings of the previous month's survey.  Below are the results for October's survey and this month's survey questions. October Survey Results 1. Does your company measure employee engagement for your relocated employees? Yes: 0%No: 34%

Tax Gross Up Formula & How to Calculate Gross Up

What is Tax Gross Up? A tax gross up is when the employer offers an employee the gross amount that will be owed in taxes. This additional income helps to relieve the employee of the tax liability associated with relocation expenses. For example, if the relocation costs include $5,000.00 taxable dollars, the employer may pay a total of $7,500.00 so that the employee gets the full benefit of the

How Do You Calculate Tax Gross-Up?

A tax gross-up is a common benefit to provide to help minimize or reduce transferee out-of-pocket costs associated with their relocation. Because gross-up is taxable to the employee, and therefore subject to withholding and payroll tax, it is required that the gross-up be 'grossed-up' to assist the employee with additional taxes. To provide an unscientific example: if an employee is promised

How To Calculate Tax Gross-Up for Relocations

Relocation tax gross up defined: When an employee receives a one-time tax relocation incentive or reimbursement of taxable relocation costs and the company adds to the reimbursement amount, a tax gross up occurs. Reimbursing transferred employees is good corporate relocation policy as it improves employee retention and productivity while helping maintain good customer/employee relations and

How Payroll Correctly Handles Relocation on W-2 Forms

Employee relocations can have their fair share of tax implications. No other circumstance is quite as worrisome to the employee as the impact that can come about from receiving a lump sum payment to cover their moving expenses. These kinds of lump sum payments are taxable. Download our free Relocation and U.S. Taxes guide for more helpful information on relocation and taxes. Minimizing Impact

The Payroll Tax Impact of Relocation Expenses

Paul S., a regional sales manager, had exceeded his sales goals for five consecutive years. When the vice president of sales called him into his office, Paul was surprised to learn his boss wanted him to consider relocating to an under-performing sales territory in the Midwest. Paul's first thoughts were of the many changes – known and unknown – that relocation would bring to him and his

Relocation Misunderstandings Lead to Popular Myths

Numerous myths surround corporate relocation policies. Most are based on simple misunderstanding of situations, but these issues can creep into formal policies without the creators realizing they are perpetuating the myths. Consider the following common myths--and address them in your policy. Popular Myths Temporary housing charges paid directly to corporate housing firms are not taxable for

How to Calculate a Tax Gross Up On a Lease Payment

If your corporate relocation program includes monetary help for transferees who rent or lease their residence, a gross-up feature that mitigates income tax consequences for relocating employees is a welcome benefit. Prospective transferees in the middle of an active lease will be particularly grateful; at least until they learn that reimbursement to buy-out their remaining lease costs may

Benefits of Including Gross-Up in your Relocation Plan

The more generous and competitive your corporate relocation program, the more likely your transferees may incur a greater tax burden for reimbursed expenses the IRS considers taxable. Your HR department staff can also experience frustration when addressing this often confusing issue. Gross-up is a commonly misunderstood feature of strong relocation programs. Gross-up methods often depend on the

3 Ways to Calculate Tax Gross Up

Tax gross up can add considerable costs to corporate relocation packages. Tax gross up can increase taxable relocation costs by 45% to 55%or more. What is tax gross up, in a nutshell, and why does it cost your company money? Tax gross up occurs when you add to the taxable reimbursement amount so that relocating employees don't face a tax liability after receiving one-time relocation