US Tax Reform and Employee Relocation
Rick Taylor February 23, 2018 Press Release, News, Oakville
With this new tax bill, relocation expenses will be deemed a taxable benefit to the employee even if the various costs are paid by the corporation.
Likewise, a person moving to a new job location who is paying for the move themselves will not be able to claim relocation expenses on their personal taxes.
These changes could have a large impact to the relocation industry as it will drive up costs as the corporation will probably "gross up" an employee's income to pay for the tax consequences of their relocation.
It will be interesting to see how this impacts the amount of employee relocations per year or if the corporation reduces other relocation benefits to reduce their costs.