Comments on Policy for Relocation Expenses - October 2004
Comments on Policy for Relocation Expenses
Released October 2004
Download the Full Report here
We have reviewed the Department of Human Resources’ draft policy on relocation expense reimbursement. We especially want to highlight the effect the draft policy would have on the city’s tax compliance responsibilities. As written, some reimbursements would have to be reported to the IRS as income and would be subject to tax withholding. We believe a simpler approach would be to reimburse only those expenses that would be deductible for individuals. To do otherwise would make it more complex for the city to correctly report the reimbursements to the IRS.
Released October 2004
Download the Full Report here
We have reviewed the Department of Human Resources’ draft policy on relocation expense reimbursement. We especially want to highlight the effect the draft policy would have on the city’s tax compliance responsibilities. As written, some reimbursements would have to be reported to the IRS as income and would be subject to tax withholding. We believe a simpler approach would be to reimburse only those expenses that would be deductible for individuals. To do otherwise would make it more complex for the city to correctly report the reimbursements to the IRS.