How to Prep Employees for Tax Season During a Move
Relocation season doesn’t stop for tax season — and that overlap can create confusion, frustration, and costly reporting mistakes.
Employees managing a relocation while preparing their taxes face unique challenges: tracking reimbursements, understanding gross-ups, and navigating multiple state or international filings.
For HR, payroll, and mobility teams, proactive communication now can prevent stress later. Here’s how to help your relocating employees feel confident — and compliant — as they head into tax season.
1. Explain What’s Taxable (and What Isn’t)
For many employees, the concept of a “taxable relocation benefit” isn’t intuitive.
They may assume all moving expenses are covered tax-free — but under current U.S. law, most relocation reimbursements are taxable income unless excluded under very specific criteria.
Help them understand early by sharing:
Which expenses will be reported as taxable (housing, temporary living, meals, per diems).
Which items may remain non-taxable (certain business travel or international exceptions).
How gross-ups work — and why they prevent surprise tax bills.
A short, plain-language guide or FAQ from your mobility partner can go a long way toward reducing confusion.
2. Provide a Timeline for When to Expect Tax Documents
One of the biggest pain points for employees in motion is uncertainty about when relocation-related documents will arrive.
Set clear expectations:
Expense and reimbursement summaries: Typically available within 2–4 weeks after the final payment.
W-2 forms: Include taxable relocation amounts and gross-ups, usually distributed by late January.
Supplemental statements (if provided): Break down relocation components for personal tax filing.
Encouraging early organization helps employees avoid last-minute stress — and reduces the number of urgent questions to HR in February.
3. Encourage Accurate Recordkeeping Throughout the Move
Tax prep starts long before tax season. Encourage relocating employees to keep digital copies of:
Receipts for all relocation-related expenses.
Housing agreements, travel itineraries, and temporary living invoices.
Final reimbursement statements from Orion Mobility or your internal expense system.
Centralizing these in one secure location (or through your mobility platform) ensures accurate year-end reconciliation and smooth filing later.
4. Address Multi-State or International Tax Complexities
Employees moving across state or international borders often face unexpected tax complications — like partial-year residency or dual-state filings. Proactive support helps minimize confusion:
Share resources explaining how multiple state filings work.
Encourage employees to flag unique tax circumstances (spouses working remotely, secondary residences, or split moves).
Partner with your mobility tax provider to issue clear guidance or webinars on cross-border implications.
Even a short pre-tax-season email can reduce errors — and protect your company from post-filing corrections.
5. Make It Easy to Get Help
Finally, remind employees that they’re not on their own. Provide a direct contact, whether from HR, payroll, or your mobility consulting partner, for questions about tax documents or relocation expenses.
At Orion Mobility, we’ve seen how proactive education can turn a stressful process into a confident one. Employees who understand what’s coming report higher satisfaction and fewer surprises — and mobility teams spend far less time managing exceptions.
The Bottom Line
Preparing employees for tax season during a move isn’t just about compliance, it’s about care. By communicating early, setting clear expectations, and leveraging the right technology, companies can transform one of the most stressful times of the year into a seamless experience.
Tax season will always bring complexity — but with the right process, it doesn’t have to bring chaos.
Orion Mobility helps employers simplify every step: from relocation expense tracking to tax-ready reporting.