Relocation Expences from employer
 

Hi All,

just received a job offer which I am currently negotiating. I am fortunate to have been offered a relocation allowance: how much is reasonable for a move from the UK to Regina. I am told a recent move from Calgary to Regina got $10K so surly a international move could attract more?

Re: Relocation Expences from employer
 

A million?

Re: Relocation Expences from employer
 

I've often seen 10% of total yearly salary as a base for relocation coverage from the company i currently work for, not including accommodation at t'other end.

That said, a reasonable relocation package should cover your expenses as they are designed to do. If you calculate how much it'll cost you to move, you have your answer ;)

On second thoughts, I'd push for Dbd33's suggestion :thumbup:

Re: Relocation Expences from employer
 

Just be warned - its taxable for international moves. When we came over we were given two weeks accomodation and a generous lump sum (~15% of salary. The taxman found the generous lump sum fairly generous and they tax you on it as though its one big salary cheque. We did get some of it back a few months later on our tax return, but not early enough for the car deposit.

Re: Relocation Expences from employer
 

Perhaps after all there's the odd vein of competence in my admin.

I just forwarded three quotes and then the bills for relocation expenses for them to pay. No cash ever passed through my hands and so nothing was visible to the taxman.

It's several years ago but IIRC about 10% of salary sounds right.

Re: Relocation Expences from employer
 

:rofl:

I think perhaps you misunderstood the question. It was regarding compensation for the actual cost of physically moving their stuff there, and perhaps some of the costs of property transaction, not for the psychological trauma.



But seriously, billing the company directly sounds like a good idea if you have lots of stuff. As I had no stuff to bring I was happy to take 10% of my annual salary, but then I didnt realise the tax consequences back then, it was just money for nothing as far as I was concerned. The company paid directly for my flight, initial hotel stay and car rental.

Re: Relocation Expences from employer
 

My company gave me a chunk of cash, as a 'signing bonus', which of course was taxed as income.
However, as this was an internal to Canada move, this leaves me free to claim the tax back on my whole moving expenses as part of the 'moving more than 40km closer to work' thingy.
It was administratively much simpler for both of us too.

Re: Relocation Expences from employer
 

It is still taxable as benefit in kind.

Re: Relocation Expences from employer
 

Is it taxable if it's put through as expenses? It's not income. It's just like putting through expenses for say, air fares.

Re: Relocation Expences from employer
 

Are you sure?

I dont see how, its paid by the business as services rendered by the companies providing the service to the employer. Presumably any HST is recoupable, and as Novo said, the tax man wouldnt see it as relating to any individual.

Worst case I dont think it any different to submitting an expense claim, only without having to pay up front for everything, and thats not taxable benefit.

Re: Relocation Expences from employer
 

I wondered about the tax situation expecting to have to declare it. I claimed mine all as expenses and in the end the sheet you get at the end of the tax year showing salary, benefits etc didn't include any of the relocation expenses so I didn't list any of it in the tax return.

Re: Relocation Expences from employer
 

Same here

Re: Relocation Expences from employer
 

The Aviator is right. The rule is that if the employer pays moving expenses it is a taxable benefit unless the employee would have been able to claim a moving expenses deduction if the employee had paid it.

New immigrants generally do not qualify for the moving expense deduction as you have to be tax-resident in Canada before and after the move to claim it. I guess that some companies don't realize this so they just assume the expenses would be deductible and don't report them on the employee's T4.

Re: Relocation Expences from employer
 

What if the moving expenses are paid before they become resident in Canada for tax purposes? Or are you deemed resident once you accept a job offer?

Re: Relocation Expences from employer
 

The bold bit definitely not.

The ITA 6(1)(a) describes a benefit as received or enjoyed by the taxpayer in the year in respect of, in the course of, or by virtue of an office or employment.

I think (and I suspect the CRA will agree) that moving expenses will meet this definition, even if they are paid before the employee becomes tax resident in Canada. They would still be subject to Part I tax as employment income even if paid to a non-resident.