Does your business provide relocation benefits for employees? Under current tax law, employers can deduct payments to employees for relocation costs, such as moving services, storage expenses and transportation. But these amounts are generally taxable to employees, except for active-duty military personnel. That means employers are required to include relocation benefits in the employee’s gross income and withhold and pay applicable payroll taxes on the payments. The One Big Beautiful Bill Act made this unfavorable tax law provision permanent, but it added another exception for “intelligence community members” that starts in 2026. Contact us if you have questions.
