Relocation Expense Agreement
What is this form?
The Relocation Expense Agreement is a legal document that outlines the terms under which a company agrees to reimburse an employee for specified relocation expenses related to a job offer. This form is essential for formalizing the financial aspects of an employee's move to a new location for work and includes conditions under which repayment may be required, differentiating it from other employment forms by focusing solely on relocation costs.
Form components explained
- Identification of the company and employee involved.
- Details about the reimbursable relocation expenses and total reimbursement amount.
- Conditions for repayment if the employee leaves the company early.
- Acceptance of terms by both parties through signatures.
- Acknowledgment that employment is at-will and is not guaranteed by this agreement.
When to use this document
This form should be used when a company offers to cover the expenses of an employee's relocation as part of a job offer. It is applicable in situations where the employee needs to move to a new location to fulfill job responsibilities, and both parties want to clearly define the repayment obligations should the employment terminate prematurely.
Who should use this form
- Employers who wish to formalize a relocation package for new employees.
- Employees receiving relocation assistance as part of their job offer.
- Human resources departments managing employment contracts and relocation policies.
Completing this form step by step
- Identify and fill in the names of the company and employee at the beginning of the agreement.
- Clearly specify the total amount of relocation expenses that will be reimbursed.
- Review and agree on the conditions for potential repayment if employment terminates before twelve months.
- Ensure both parties sign and date the agreement to validate it.
- Provide copies of the signed agreement to all parties involved for their records.
Notarization requirements for this form
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Mistakes to watch out for
- Failing to specify the exact relocation expenses being reimbursed.
- Not including a clear repayment structure if employment is terminated early.
- Overlooking the need for both parties to sign the agreement.
- Not providing copies of the signed agreement to both the employer and employee.
Why use this form online
- Easy access to the form ensures quick and efficient document preparation.
- Editable formats allow customization to fit specific company needs.
- Reliability of having attorney-reviewed templates to ensure legality and enforceability.
- Instant downloads save time compared to traditional methods of obtaining legal documents.
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FAQ
Yes, report relocation assistance money on your tax return (it is taxable). You may receive a 1099-MISC form for this payment. Either way, enter the income received as Other Income on line 21 of your 1040. In TurbTax under Income and expenses, select Miscellaneous Income, then Other Reportable Income.
Debit "Relocation Benefits" or "Moving Expenses" for the same amount. For example, if you issue a $25,000 relocation benefit, credit the accrual account $25,000 and debit the expense account $25,000.
The IRS allows taxpayers to deduct eligible moving costs.If you moved to a new location because of work, you may qualify to use IRS Form 3903 to claim the cost of your moving expenses as a deduction on your federal income tax return.
When you transfer an employee from one of your places of business to another, the amount you pay or reimburse the employee for certain moving expenses is usually not a taxable benefit. This includes any amounts you incurred to move the employee, the employee's family, and their household effects.
When you give a relocating employee any sort of relocation benefitwhether it's in the form of a signing bonus, reimbursement for moving expenses, or even when you book a flight or pay for a service on behalf of your employeethat money and/or those services are considered taxable income.
A core or typical job relocation package usually covers the costs of moving and storing furnishings and other household goods, along with help selling an existing home and costs incurred house hunting, temporary housing if necessary and all travel costs by the employee and family to the new location.
Relocation reimbursement. Flexible start date. Free visits. Temporary housing. Familial support. Real estate cost assistance. Pay adjustments or bonuses. Payback clause.
If you have moving expenses that are greater than the amount of reimbursement shown in box 12 of Form 1040, or your reimbursement was reported as wages in box 1, then you can file Form 3903 with your tax return to report moving expenses and reimbursements to the IRS.
Look on your Form W-2, box 12. If there is an amount with a code P, that amount is included in your taxable income. You should take a moving expense deduction to avoid paying tax on your reimbursements. You should also take a moving deduction if your employer included your reimbursement with wages in box 1 of Form W-2.
