Expense Administration and Canadian Taxes

Tracking and reporting relocation expenses is one of the most difficult tasks for human resource departments.  Managing these expenses is very important for budgetary purposes and, more importantly, for tax reporting and payroll purposes.  Relocation Benefits will provide you with the breakdown to which relocation costs are considered deductible by the IRS and which are considered taxable.  We will then calculate your payroll tax withholdings and your year end gross-up adjustments in accordance with your relocation policy.

In Canada, the qualification of relocation expenses is based on a mileage rate of 40 Kilometers.  The distance from the new home to the new work location must be at least 40 kilometers closer to the new place of work and the old residence.

Expense administration covers four basic areas:

1.  Processing of expenses

2.  Reporting of expenses to various departments

3.  Gross-up process

4.  Year-end reporting

Non-taxable expenses:

• Selling Costs of the old Residence some stipulations apply

• Temporary Lodging up to 15 days and meals

• Some closing costs on the purchase of a new home

• Vacant old residence costs and lease breaking fees

• Transportation and storage of household goods

• Final Trip and certain expenses associated with travel

For a full overview of our Expense Administration services please contact us at 877-396-0132.