As 2018 gets underway, it is important to review and understand the affect that the 2018 tax bill for employee relocation has had on the relocation industry. Several aspects of your relocation policies that were excludable in 2017 have become taxable in 2018.
One of the most common requests that we receive at ARC Relocation from our clients is to help write and or benchmark their company’s written relocation policies.
As an industry leader for employee relocation services ARC Relocation ARC is the sole source relocation provider for over 85 clients to include the United States Government and corporations across virtually every industry. As such ARC has amassed the largest databases of relocation policies in the world.
2018 Tax Bill for Employee Relocation Best Practices
There are many aspects to “industry best practices” in regards to company relocation policies. Important considerations include but are not limited to: company spend/budget, attracting and retaining talent, employee discrimination, efficiency, and company liability. This particular blog is being written to address the new 2018 Tax Bill for Employee Relocation that went into effect on January 1st , 2018. As a result of these important new tax changes ARC Relocation is advising clients to update their relocation policies no later than January 31st, 2018.
At ARC we are able to leverage our expertise and experience to help you, the HR Professional to stay compliant and at the same time meet all of your company’s goals and initiatives for your relocation program.
Important items that have changed in the new 2018 Tax Bill include but may not be limited to:
- Household Goods (HHG) – 2017 Excludable/2018 Taxable
- 30 Days Storage (of HHG) – 2017 Excludable/2018 Taxable
- Final Move Non-Meal – 2017 Excludable/2018 Taxable
- Duplicate Housing Interest and Taxes – 2017 Deductible/2018 Potentially Taxable
- Points – 2017 Deductible/2018 Potentially Taxable
- Loan Origination Fees – 2017 Deductible/2018 Potentially Taxable
It is important to revise your company’s relocation policies to reflect these changes. One of the resources that our clients most often take advantage that we want to share in this blog is our library of Example Relocation Policies. Our example relocation policy library has never been more helpful as it is now with the new 2018 Tax Bill. ( All policies have been updated to reflect the new changes. )
To access the library and view ALL example polices for: Renters, Lump Sum Relos, Capped Budget Relos, International Relos and more please visit our example relocation policies or contact ARC today!
For more information on the IRS Publication 521 (2017), Moving Expenses visit: https://www.irs.gov/publications/p521