Paying relocation expenses

August 1, 2019


Q. What is the best practice in paying relocation expenses? Is it better for the expense to be paid through payroll or through AP? We will be grossing up the relocation expenses at a set rate of 33%. A. (Provided by IOFM Senior Trainer Judy Bicking) Since this is taxable income, the best practice would be to have it paid via Payroll.  Even expenses that are paid directly to a vendor must be reported on the employee's W-2. If you process through a T&E process, the expenses would still be…

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