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Tax Gross-Up Audits

Confirm payments made for mobility-related reimbursements were calculated in accordance with corporate policy.

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About Our Tax Review & Gross Up Audit Services

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Improve your employee satisfaction by providing a seamless relocation experience, free from tax-related stresses on their relocation reimbursement.

We can help companies ensure they keep their employees “whole” and stay program-compliant when grossing up for taxes. Ineo’s Tax Gross-Up Audit service ensures that any additional tax liabilities to the employee are reviewed to determine if they are due to relocation expense reimbursements. The gross-up audit is conducted based on a “with” and “without” relocation scenario.

A Trusted Global Tax Partner

Ineo is uniquely positioned to provide gross-up audit and tax assistance due to our vast experience working with globally mobile employees. Fortune 2000 enterprises, government agencies, international accounting firms, and corporations worldwide. all trust Ineo for the tax-related needs of their employees.

A Simplified Process

We offer an easy process to calculate tax gross-up with a turn-around of gross-up audit results within just a few days. Transferees simply provide our tax professionals with a PDF of all federal, state, and local tax returns they filed, along with a PDF of their Relocation Tax Report. We calculate and document how much the transferee would have paid in taxes both “with” and “without” the move. The resulting difference, if positive, is then “grossed up” for the current year’s taxes.

Calculations According to Your Policy

We will ensure full compliance with your company’s policy. The scope of the reconciliation is to determine if the initial company paid gross-up was calculated following company policy. Our tax professionals also review transferee tax returns to verify the employee’s estimated taxable income used in the gross-up calculation and that the income used reflects the company policy.

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Order the Tax Support You Require Today!

In addition to our Mobility Tax Advisor Guide, we also offer Tax Consultation Support and Q&A Subscriptions so we can better meet your tax needs, whatever they may be.

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For more information, contact sales: +1 303.219.7291

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Contact us to learn how our tax gross-up audit services can support your global mobility program.

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Frequently Asked Questions

What is a tax gross-up audit?

A tax gross-up audit is a specialized review process designed to ensure that relocated employees are not financially burdened by additional tax liability arising from relocation-related reimbursements. When companies provide certain benefits or reimbursements to their employees, these amounts can be considered taxable income. The gross-up payments refer to an additional amount paid by the employer to cover these income tax liabilities, ensuring that the net pay amount received by the employee remains unchanged after taxes.

The audit typically involves a comparison of tax scenarios “with” and “without” the relocation to determine any discrepancies and ensure compliance with corporate policies.

How do you calculate gross-up tax?

We determine the gross-up value by assessing the additional income taxes a transferee would owe both with and without the relocation. If the difference is positive, it’s adjusted upward for the present year’s taxes.

How does the tax review process work?

Our tax experts review the transferee tax returns to verify the employee’s estimated taxable income used in calculating the gross-up itself, and that the income used is aligned with corporate policy.

What is a tax gross-up moving expense?

A tax gross-up moving expense refers to an additional payment an employee receives to cover the tax liabilities associated with relocation-related reimbursements or benefits provided by their company. When employees relocate for work purposes, certain relocation expenses, such as shipping belongings, travel costs, or housing allowances, might be reimbursed by the employer. However, these reimbursements can be considered taxable income in many jurisdictions.

To ensure employees receive the full intended benefit of these reimbursements without being burdened by the additional taxes, the employer may gross-up pay the amount on the employee’s behalf. This means they calculate the tax owed on the reimbursement and then increase, or gross-up pay to relieve the tax burden. The end result is that the employee receives the full value of the reimbursement after income taxes.