If you haven’t kicked off your year-end relocation expense process yet, don’t worry, but don’t wait! The cycle is already underway, and there’s no better moment than now to get moving. Grab your coffee, rally your team, and let’s make this year-end the smoothest one yet!
If you’re already underway with your year-end preparation, congratulations! You’re ahead of the curve, and your proactive approach will pay dividends in accuracy, compliance, and employee satisfaction.
Whether you’re just starting or looking to refine your process, this playbook is designed to make each step easier, clearer, and more effective. Use it as your roadmap to navigate the complexities of reporting taxable relocation benefits and coordinating with payroll and tax providers.
Why Year-End Planning Matters
For HR and global mobility professionals, year-end is a pivotal time to ensure accurate reporting of taxable relocation benefits. A well-prepared process not only supports compliance and minimizes costly errors, but also delivers a transparent, stress-free experience for both your organization and relocating employees. This guide walks you through each step, offering practical strategies and best practices to help you coordinate with your relocation management company (RMC), payroll, and tax providers, communicate effectively, and meet all compliance requirements.
Collaborating with Your Relocation Management Company (RMC)
For HR and global mobility professionals, year-end is a pivotal time to ensure accurate reporting of taxable relocation benefits. A well-prepared process not only supports compliance and minimizes costly errors, but also delivers a transparent, stress-free experience for both your organization and relocating employees. This guide walks you through each step, offering practical strategies and best practices to help you coordinate with your relocation management company (RMC), payroll, and tax providers, communicate effectively, and meet all compliance requirements.
Following the steps below will help make your year-end preparation easier:
For HR and global mobility professionals, year-end is a pivotal time to ensure accurate reporting of taxable relocation benefits. A well-prepared process not only supports compliance and minimizes costly errors, but also delivers a transparent, stress-free experience for both your organization and relocating employees. This guide walks you through each step, offering practical strategies and best practices to help you coordinate with your relocation management company (RMC), payroll, and tax providers, communicate effectively, and meet all compliance requirements.
1) Kick Off Year-End Planning (Mid-October)
The journey to a successful year-end begins early. By mid-October, HR teams should initiate discussions with payroll and tax providers. This is the time to review any changes in reporting requirements, confirm year-end cutoffs, and identify special circumstances that may require corrections (such as W-2C forms). Early engagement sets the tone for a proactive, error-free process and ensures all stakeholders are aligned.
2) Coordinate Data & Reporting Cycles (January-October)
Consistency is key throughout the year. Maintaining regular reporting cycles, monthly, quarterly, or as determined by your organization, ensures that expense data remains current and discrepancies are caught early. Leveraging your client portal to keep relocation expense records up to date and monitoring for issues helps prevent last-minute surprises and supports a smooth year-end close.
3) Submit Final Payroll Files & True-Up (November)
November marks the critical phase of submitting final payroll files and completing true-ups. Double-check all relocation-related compensation entries and address any last-minute changes or corrections. This step is essential for ensuring that all data is accurate before finalization, reducing the risk of costly amendments later.
4) Finalize Year-End Data (December)
As the year draws to a close, HR teams must confirm that all year-end data is both accurate and complete. Reviewing final reports and coordinating with external tax providers (if applicable) ensures that nothing is overlooked. This diligence is crucial for compliance and for providing employees with reliable information.
5) Distribute Employee Reports (By January 31)
Timely communication is the final step. By January 31, relocation tax reports should be distributed to employees, accompanied by FAQs and clear explanations. Ensuring employees understand their reports and have access to support for questions fosters trust and reduces confusion. Providing clear instructions for any required actions empowers employees to respond confidently.
Summary
By following this step-by-step guide, you’ll deliver a smooth, compliant, and transparent year-end experience for your organization and your employees. Early planning, consistent data management, and clear communication are the keys to success.
Let this playbook be your companion as you navigate the year-end process with confidence.
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U.S. Domestic Relocation Cost Estimator
Interactive Repayment Agreement
Domestic Relocation Policy Designer
Relocation Benchmark Comparison
RFP – Relocation Request for Proposal Generator
