Your Year-End Relocation Tax Checklist

10.9.19 | While the tax year is coming to an end, time is still on your side. Use this checklist to proactively manage your relocation taxes so you can start your new year with less stress.

First, Determine Your Deadline
Determine the date by which payroll needs final relocation numbers for 2019, then work backwards. Below is a typical schedule for those running a year-end delta/adjustment report. For those who don’t, some steps are unnecessary and the timing may be slightly different.

6 Weeks Prior to Payroll Cutoff

  • Alert employees and vendors to your final expense cutoff date.
  • Double check / balance YTD numbers between payroll and relocation departments.
  • Audit your system. Be sure gross-up polices are set up correctly.
  • Audit transferee information – i.e. 1040 exemption numbers, marital status, gross-up policy, homeowner/renter status (if applicable), etc.

3-4 Weeks Prior to Payroll Cutoff

  • Final expense cutoff date.
  • Double check that no expenses have been missed or entered with incorrect year as the expense date.
  • Check for any outstanding payroll issues.
  • Run final payroll withholding report for the year.

1-2 Weeks Prior to Payroll Cutoff

  • Verify that no new expenses have been processed or entered into the system.
  • Run final audit of the system including verifying that all employee information is complete.
  • Send earnings information request to payroll. Be specific about whether YTD earnings include previously-reported relocation.

Final Week Prior to Payroll Cutoff

  • Get earnings information from payroll and enter into the system. Verify that you have information for all transferees with reportable expenses.
  • Double check the calculations. Look for anything strange.
  • Send the delta report to the payroll department.

January

  • Re-run any problem gross-ups.
  • Double check that you have email/mailing addresses for transferees who will be receiving Relocation Tax Reports.
  • Mail the reports to transferees including any memos and/or tax publications.

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