Moving Expense Reimbursement: Employer Perspective

If you would like to recruit employees from a wide geographic area, or if your company has numerous locations that require employee mobility, you may want to offer a qualified moving expense reimbursement as part of your employee benefit package. Qualified moving expense reimbursements are funds that you give to your employee, directly or indirectly, as payment for or reimbursement of expenses that would be deductible as moving expenses if your employee paid or incurred them. Extra amounts are considered wages subject to withholding.

Deductible moving expenses include the reasonable costs of moving household goods and personal effects from the former home to the new home, and traveling from the former home to the new home (including lodging, but not meals). The move must be related to starting work in a new location at least 50 miles farther from the employee's home than the old job location was, and the employee must work at least 39 weeks during the first 12 months after arriving in the general area of the new job location.

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