Relocation Expenses: When It Comes to Tax Gross Up and Relocation Policies, Find a Company that Follows Through
Most business owners and managers know that understanding taxes, tax laws, and regulations is best left to the professionals. This is especially true when you are talking about relocation policies and tax gross up. It's important to hire a Relocation Management Company (RMC) who will follow through from beginning to end of the relocation process, including gross up tax assistance.
The Danger of Inaccurate Relocation Expense Reporting and Gross Up
Inaccuracies in reporting of relocation expenses and tax gross up can lead to a myriad of problems. Accounting departments often use a method called tax gross up so employees don't face tax burdens on relocation expenses covered by the company. Essentially, the amount provided to employees for relocation is enough to cover the related taxes from that income, as well. While tax gross up is a legitimate business practice, if it's not handled properly, gross up inaccuracies can lead to an audit, which could adversely affect your entire company. Don't take chances with a relocation management company that doesn't follow up with gross up tax assistance.
An inaccurate tax gross up affects: READ MORE at http://www.caprelo.com/CapRelo/Recource_Center/Articles/When_It_Comes_to_Tax_Gross_Up_and_Relocation_Policies,_Find_a_Company_that_Follows_Through/