Relocation can be a major expense for both employers and employees. That's why many companies offer relocation packages to help offset the costs of moving. But how much is the average relocation package? And what's included?
A gross-up is an amount of money that an employer adds to a payment to cover income taxes their employee will owe for that payment. This additional gross income helps relieve the employee of the tax liability associated with relocation expenses.
Employee relocations can have their fair share of tax implications. No other circumstance is quite as worrisome to the employee as the impact that can come about from receiving a lump sum payment to cover their moving expenses.
