Expense Administration

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 of 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.

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

Click here for Canadian Relocation Tax Law Summary

Test your knowledge of Relocation Expense Management and Taxation.

True or False:  All relocation related expenses are considered a business expense.

True or False:  The first 30 days of temporary housing is considered non-taxable.

True or False:  An employee working at headquarters returns home to visit their family; this employee is allowed to declare his reimbursed visit as a non-taxable relocation expense.

True or False:  Reimbursing your employee at the standard IRS approved business mileage rate for their final move is considered non-taxable.

True or False:  The IRS does not consider the reimbursement of household goods moving expenses as "compensation of services"; therefore this reimbursement does not need to be reported as income to the employee.

True or False:  A corporation can elect to report relocation expenses to the IRS at the end of the tax year as long as the expenses are filed prior to the filing of W-2 information.