Repayment of Relocation Expenses Greensboro NC

In today's hiring market, it is not uncommon for employees to take a new position with a company only to leave after a few months. This can result in the loss of as much as $50,000 in recruiting fees, relocation payments made to and for the new employees, and training.

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In today's hiring market, it is not uncommon for employees to take a new position with a company only to leave after a few months. This can result in the loss of as much as $50,000 in recruiting fees, relocation payments made to and for the new employees, and training. This article will discuss one method of recouping some of those costs: requiring employees to bear some of the relocating expenses if they voluntarily leave within a set period of time. Most companies just write off the money they have given employees for relocation expenses when they depart the company after a short period of time, but this need not be the case.

Many companies are now requiring employees to repay at least some of the expenses the company has provided to help the employee relocate, including "gross-up" as reported on FORM 4782 - "Employee Moving Expense Information" - which the IRS requires employers to give their employees. Repayment of relocation expenses is usually based on some type of prorated schedule over a set period of time, usually one to two years, although it could be longer. The prorated period of time usually starts the day the employee starts work but could begin on the day the final relocation payment is made. If the employee lives in company-paid housing for six months before moving into a house, then it could be eight months before the prorated repayment period even begins, depending on when the moving company is paid.

An example of a relocation repayment agreement is such:

In consideration of the relocation benefits I am to receive, I agree that I shall not voluntarily terminate my employment for a period of twenty-four (24) months from the date on which I last incur relocation expenses. (Example of such expenses includes those for a house-hunting trip, temporary lodging, moving expenses, etc.) I further agree that if I voluntarily terminate my employment prior to the expiration of the twenty-four (24) month term, I will repay to my employer a pro rata portion of the relocation expenses for which I have been reimbursed, as well as a pro rata portion of any other relocation expenses incurred by my employer on my behalf. The amount of repayment is to be calculated based on the number of months remaining in the 24 month term compared to the total number of months I have agreed to work.

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Featured Local Company

Dew K Michie Harriss Ph.D.

336-272-0855
806 Green Valley Rd
Greensboro, NC