Gross-up Audit and Tax Reconciliation Service
Ineo’s Gross-up Audit and Tax Reconciliation service was created to help companies ensure that payments made for mobility related reimbursements were calculated in accordance with corporate policy. It also provides an important talent management role by making sure the transferee or assignee has a stress-free relocation experience as it relates to their tax burden on payments received.
Our service is hassle free and always expedited; gross-up audit results are turned around within just a few days. Transferees simply provide our Ineo Tax Services professionals with a pdf of all federal, state and local tax returns they filed, along with a pdf of their Relocation Tax Report. We then 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.
The scope of the reconciliation is to determine if the initial company paid gross-up was calculated following company policy. The review of the transferee’s tax return also verifies the employee’s income used in calculating the gross-up itself, and that the income used reflects the company policy. Ultimately, companies make sure that they are keeping their employees “whole” and staying program compliant.