Making a Lump-sum Move
When you are a business owner, you are always aware of the recent tax code updates and how it will affect your business. Especially when you know you will be planning a move in the future. Do you have a company that is getting ready to make a lump-sum move and want to learn more about the process? The Sarasota movers of All My Sons Moving & Storage can help!
The Pros and Cons of Lump-Sum Moves
In 2017, there was a major change to the US Tax Cuts and Jobs Act that resulted in big changes for business owners. One of the biggest changes- the removal of moving expense deductions- affected businesses that wanted to relocate their staff to different parts of the country. This change meant that employees could no longer deduct the cost of work-related moves from their taxes and that business would now be responsible for some of, or the entire cost of, relocating their employees.
Sarasota corporate movers understand that moving employees can become very costly to businesses as these types of moves are considered income for the business. This is where a lump-sum move comes into play.
What is a lump-sum move?
A lump-sum move is when a business provides a single amount as reimbursement to employees after a corporate move.
Pros of a lump-sum move
- Lump-sum moves are a straightforward transaction for both the business and the employee who is moving because there is a set amount that is awarded to the employee for the move.
- There is less work to be done by the business because the employee is also responsible for the logistics of their move.
- The employees can allocate the money they receive from the business toward whatever parts of their move they see fit.
- It is easy for a business to gross the lump-sum in order to cover the amount that will be taxed on it, thus ensuring that the employees get enough to move comfortably.
Cons of a lump-sum move
- Knowing exactly how much employees spend on moving is hard to gauge, so making adjustments is hard as well.
- Lump-sum moves can lead to employees needing to do more work than they want to, since they will be responsible for the logistics of their move.
- Once an employee is awarded money for a move, they are not required to return any money that is left over.
If you are preparing for a move to a new city our All My Sons Moving & Storage would be an ideal partner. Our moving crews made up of Sarasota residential movers, Sarasota auto movers, and other needed specialists. We will work within your company’s relocation packages and budgets to successfully relocate professionals right on schedule.