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Moving expenses

Posted: Tue Nov 18, 2014 11:31 am
by LibraryLady
Small business in Dallas.

Person hired and offered $$ as moving expenses.
Person takes the job, but says, 'No, I will commute. Don't need moving expenses."
Now, 2.5 years later, person is tired of the drive and wants the moving expenses.

Is he entitled or not?

Re: Moving expenses

Posted: Tue Nov 18, 2014 11:45 am
by Sangersteve
Nope, after 6 months maybe, 2.5 years, no way.

Re: Moving expenses

Posted: Tue Nov 18, 2014 11:45 am
by crocmommy
No I wouldn't think the person would be entitled. I would say it's up to the owner how much this employee is valued as to whether the moving expenses should be bonused to this person. And I'm thinking none of it would receive tax free/tax deductible treatment since it's been two years....but I'd have to look to be sure of that.

Re: Moving expenses

Posted: Tue Nov 18, 2014 2:55 pm
by grouchy
Sangersteve wrote:Nope, after 6 months maybe, 2.5 years, no way.

Agree

Re: Moving expenses

Posted: Tue Nov 18, 2014 2:57 pm
by grouchy
LibraryLady wrote:Small business in Dallas.

Person hired and offered $$ as moving expenses.
Person takes the job, but says, 'No, I will commute. Don't need moving expenses."
Now, 2.5 years later, person is tired of the drive and wants the moving expenses.

Is he entitled or not?

Was this individual getting mileage payments?

Re: Moving expenses

Posted: Tue Nov 18, 2014 3:44 pm
by LibraryLady
No mileage paid.

Re: Moving expenses

Posted: Tue Nov 18, 2014 4:25 pm
by bodine
I'm not a lawyer, nor do I play one on tv, but I think the offer of moving expenses was voided when the new hire declined in favor of commuting. And certainly ended with the close of that particular fiscal year...

Re: Moving expenses

Posted: Wed Nov 19, 2014 10:59 pm
by Ric
why should the offer be invalid at the end of the fiscal year? There may have been circumstances that held precedence at the time.. school children being uprooted comes to mind. If the guy was worth it then, why wouldn't he be worth it to go ahead with some form of expenses in order to keep the valued employee? Unless it was stated in the beginning, to rescind it now would seem an uncertain move... not legally, maybe.. but risky if the man is of any value to the company.

Re: Moving expenses

Posted: Thu Nov 20, 2014 7:38 am
by LibraryLady
IRS apparently thinks 1 year is the limit:

This is what the IRS has to say about it.

Move Related to Start of Work
Your move must be closely related, both in time and in place, to the start of work at your new job location.
Closely related in time. In most cases, you can consider moving expenses incurred within 1 year from the date you first reported to work at the new location as closely related in time to the start of work. It is not necessary that you arrange to work before moving to a new location, as long as you actually go to work in that location.

Re: Moving expenses

Posted: Thu Nov 20, 2014 9:13 am
by Ric
A little vague in how long an employee has to make the decision.. the employer may not be bound to honor the agreement, but that doen't mean that he/she shouldn't...

Re: Moving expenses

Posted: Fri Nov 21, 2014 6:38 am
by Houston
1. if valued person work with him
2. the dollars would not be considered moving expenses but as bonus and taxed as ordinary income to receiver

Re: Moving expenses

Posted: Fri Nov 21, 2014 8:53 am
by dublusk
I liked the old days. When a person made a deal, he stood by his word and lived up to the deal he made! I guess those days are gone?

Re: Moving expenses

Posted: Fri Nov 21, 2014 8:11 pm
by LibraryLady
Dub, he is getting his moving money, but after 2.5 years, I am of the opinion the deal was over.

Re: Moving expenses

Posted: Sat Nov 22, 2014 8:11 am
by Red Oak
dublusk wrote:I liked the old days. When a person made a deal, he stood by his word and lived up to the deal he made! I guess those days are gone?



Dub the past is another Country.

Re: Moving expenses

Posted: Sat Nov 22, 2014 2:10 pm
by Ric
LibraryLady wrote:Dub, he is getting his moving money, but after 2.5 years, I am of the opinion the deal was over.


Cool.