Employee Relocation Tax Law: What is tax gross-up?

What is tax gross upTax gross-up is a topic that relocation professionals routinely speak about among themselves but sometimes do not discuss adequately with relocating employees. Gross-up is a complicated subject and we sometimes wrongly assumed that tax discussions should be saved for the tax professionals—particularly if the employer is providing that service.

What is gross-up or tax assistance? In simple terms, an employer agrees to defray the taxes owed on a relocation benefit(s) on behalf of the transferee / assignee.

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TRC Global Mobility Announces Management Promotions

MILWAUKEE, Wis. (March 14, 2017)– TRC Global Mobility, an employee talent mobility company providing services for U.S., international and government clients, announced several changes to its executive leadership team, including four management promotions today.

Sean Lickver, CRP, GMS, was named TRC’s new President. He previously served as Executive Vice President. In announcing this promotion, Paul Haislmaier, TRC’s CEO and Chairman said, “Over the past two years Sean Lickver has played an integral role in TRC’s progress. His collaborative manner with employees and management, his ability to evaluate talent, his vision for the future and his knowledge of the global talent mobility industry are impressive. He has been a driving force in bringing TRC to where it is today and preparing us for where we want to be tomorrow. I look forward to continuing to work with Sean.”

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Taxability of US Domestic Relocation Benefits – Are You Prepared?

Arguably, the most complicated discussions surrounding domestic relocations involve the tax piece. For any domestic relocation expenses to be qualified as tax deductible, there are a few requirements that must be met, including:

  • The move must correlate with the start date at a new job location
  • The employee must be employed full time for 39 weeks during the 12-month period following the first day of work in the new location
  • The new place of work must be 50 miles farther than the commute from the old residence to the old place of work
  • The expenses must have been incurred due to the move
  • Only reasonable expenses are deductible
  • There is no limit on the dollar amount of deductible expenses

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How Immigration Reform will Impact Global Mobility

immigration reformFor years, comprehensive immigration reform has moved through the U.S. House and Senate in stops and starts. The new administration has signaled a more aggressive stance on immigration right out of the gate, and Congress is expected to take up comprehensive immigration reform once again. In the meantime, a great deal of uncertainty will cloud the process for companies and candidates alike.

Attracting Talent

Talent knows no borders.

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Temporary (Short Term) Domestic Assignments

Short-term domestic work assignment With more and more companies looking for creative ways to save money, many have turned to their relocation policies for areas in which to cut costs.  One trend that has gained in popularity recently is the temporary domestic assignment (TDA).

The IRS defines a short-term assignment as one that lasts for less than one year.  This is a very important distinction because the benefits change from non-taxable or deductible to taxable at the one-year mark. Companies that provide relocation tax assistance can save a considerable amount of money by not having to pay taxes on the benefits. (more…)

Employee Relocation: Avoid Failed Assignments with Domestic Candidate Assessment

Assessing candidates for domestic positionsMost companies understand the importance of candidate assessment for global assignments, and many tools exist to gauge the adaptability of the candidate and family. Increasingly, companies that want to protect their investment in a domestic move are applying the same thought process and using some of the same tools.

A Resume Isn’t Enough

Most of the time, whether for a global or domestic move, the first consideration is technical competence. Can the candidate do the job? While this is obviously critical, our global experience has shown that without the proper cultural fit and adaptability, the assignment is likely to fail.

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Why Benchmark?

The Benefits Of Benchmarking Domestic & International Relocation Policies

benchmarking dataCompanies benchmark their relocation policies to analyze process performance, evaluate their program against their competitors’ or to measure their program against their own divisional or location-related best practices.

If you have a mobile workforce, benchmarking your domestic and international relocation policies against the competition and other selected companies is critical, and your relocation management company can be a great help. Relocation management companies use technology to capture and evaluate data across many clients. They evaluate this data and share their insights with clients who are assessing their mobility programs. (more…)

Employee Relocation: Cultural Training for Intra-Country Moves?

Training for Intra-Country MovesWe expect to experience some degree of culture shock in global moves, and often provide cultural training to help mitigate it. But culture shock is rarely acknowledged for moves within the same country, and support to manage it is even rarer. Since neither companies nor relocating employees expect domestic culture shock, the situation becomes even more confounding. (more…)

Employee Relocation: Using Destination Mentors to Ease Culture Shock

Mentoring for SuccessDestination mentors play a very important role in helping your employees to get acclimated quickly during an employee relocation. In order to be most effective, your organization needs to carefully consider what type of mentor you wish to provide, and what kind of relationship he or she will have with the employee.

 

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