As Hem saw his friend getting into his running gear, he said “you’re not really going out into the maze again, are you? Why don’t you wait here with me until they put the cheese back?” “ Because you just don’t get it”, Hem said. “I didn’t want to see it either, but now I realize they’re never going to put yesterday’s cheese back. It’s time to find New Cheese.”
I love the book “Who Moved My Cheese? by Spencer Johnson, M.D.. It’s a great story about an amazing way to deal with change in the workplace and in your life. We are currently dealing with change today in many industries including the mobility industry with the new tax cuts and jobs act law implemented this year which is creating a lot of “buzz” around change and the process of relocating talent. Many companies are reviewing their program and discussing ideas and strategies with their partners for policy alignment with the new tax laws, and their business goals.
Here are a few questions I have been asked this month about new mobility tax laws that might help your team in 2018…
- Can a corporation still deduct moving expenses when relocating talent? Yes, employee relocation is still considered a business expense. However, corporations are now taxed on all relocation expenses and will need “gross up” the costs to make the employee whole on his/her W2 for tax purposes. Corporation tax has also been reduced from 35% to 21% providing $140,000 of windfall for every $1,000,000 taxable income to help offset costs.
- What relocation expenses are tax deductible? Most relocation expenses are now taxable income for employees except for members of military on active duty moving for military orders, as well as tax protected home sale programs (BVO and GBO) as long as they meet WorldwideERC 11 key elements under IRS Revenue Ruling 2005-74.
- Does the time and distance rules still impact relocation taxes? Since the moving deduction is no longer viable for household goods and storage for 30 days, you no longer need to include 50 mile / 39 week rule in your policy. However, many companies are revising their policy by taking out “IRS” and changing to “Company” to give them a guide for employees eligible for a corporate relocation.
Quote of the week: “There is always new cheese out there whether you recognize it or not. And you are rewarded with it when you go past your fear and enjoy the adventure.” (Haw)
Call to Action: What questions do you have about employee relocation? Reach out to your relocation partner to discuss and develop strategy for an effective program when onboarding talent needing to relocate their family. They will appreciate having new cheese, and so will you!
This has been A Relocation Minute on “who moved the mobility cheese” with Bruce Waller, For more information, call 972-389-5673, or email firstname.lastname@example.org or check out my social media Facebook and Twitter page.
Also, check out www.BruceWaller.com to order or review my latest leadership book “Find Your Lane” on sale at Amazon, or Barnes and Noble. Available on Kindle edition too!