Discussion:Moving Expenses
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Discussion Forum Index --> Accounting Questions --> Moving Expenses
Dianakennar (talk|edits) said: | 7 May 2008 |
| Hello Everyone,
Do I have include moving expenses that are being offered as incentive to accept job, as part of employee wages? | |
| May 7, 2008 | |
| Yes except for moving expenses paid by employer direct to third party for deductible expenses i.e. moving of household goods and moving of the people. | |
Dianakennar (talk|edits) said: | 7 May 2008 |
| Thanks BEGooding. Where would I find out more details about this, on the IRS website?
Or should I conclude that only the payment to a moving company would be considered a company expense? Not sure what moving of the people includes. Thanks again. | |
Dianakennar (talk|edits) said: | 7 May 2008 |
| Everything I find on the IRS wesite relates to the employee dedction of moving expenses and not how they relate to the employer. Can they be classified as something else, legally? | |
| May 8, 2008 | |
| My understanding is that you can also reimburse the person for moving expenses. The amount covered by the employee should be reported on the W2 but not as wages if it is simply a reimbursement. I don't know the references offhand, but you might want to look at Publication 15 or instructions for W2s. | |
Dianakennar (talk|edits) said: | 8 May 2008 |
| Thanks Natalie. I read about the accountable and the non-accountable plans and I understand the rules now, but there is still not a complete list of whats type of moving expenses are included in the accountable plan. If I pay her $2000 deposit on an apartment, can I exclude that from wages? | |
| May 8, 2008 | |
| By "deposit" are you referring to a security deposit? If so, that wouldn't qualify because the employee would eventually get that money back personally, assuming there is no damage to the unit, etc.
My understanding is anything that the employee would be able to deduct an employer is allowed to reimburse without having to put the reimbursement into taxable wages. You should check to see if there's a limit on the amount of the reimbursement, but I don't recall any. In addition, make sure the employee meets the requirements for distance of move, etc. | |
