Did You Know Archives

Did You Know That . . . Employer-Paid Moving Expenses are Now Taxed as Employee Income?

Published on May 8th, 2019 by Alan L. Sklover

Sklover Working Wisdom Tax Relocation Expense Reimbursement

. . . Yes, the 2018 “Tax Reform” law in the U.S. made employer-paid and employer-reimbursed relocation costs – even when your moving is requested by the employer – income to the employee, and thus taxed to the employee? Yikes!

We all should know that wages, salary, bonuses and employer-granted grants of stock are “income” to the employee, and thus subject to taxes to be paid by the employee.

Some of that changed in the U.S. this year due to our “friends” in Congress, and their so-called “Tax Reform” law that lowered taxes on the wealthy.

Under previous tax law, payment OR reimbursement of most of an employee’s job-related moving expenses were not subject to income taxes or employment taxes (such as Medicare or Social Security.)

However, under last year’s so-called “tax reform” legislation, employers now must include all moving expenses – whether paid by the employer OR reimbursed by the employer – in the employee’s income that they report annually to the IRS.

Employees are warned to take this change into account when considering whether to accept a relocation request, as moving oneself, or an entire family, can be awfully expensive, and doubly so when the amount paid or reimbursed by the employer is also subject to taxes.

You may want to request that your employer (or prospective employer) not only pay for or reimburse you for your relocation costs, but also agree to “Gross Up” that amount that is, also pay you what you will need to pay in taxes, to make up that “tax difference” to you. Alternatively, to “repay” you in some way to address this new tax burden on you.

If you are not familiar with the concept of “Tax Gross Up,” look for our upcoming newsletter to be entitled “Tax Gross Up: What Does That Mean?”

“Knowledge is leverage. Forewarned is forearmed. Look before you leap.” That’s our motto at SkloverWorkingWisdom.com.

[Written and transmitted May 8, 2019.]

(Please note: This email newsletter does not constitute legal or tax advice; for such advice or counsel, you need to consult a lawyer or tax adviser. In addition, laws change, and that includes the present tax law noted above, and, so, reliance upon this email newsletter must take these warnings into account.)

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© 2019 Alan L. Sklover. All Rights Reserved and Strictly Enforced.

Did You Know That . . . Recording Calls or Meetings Can Get You Fired

Published on May 30th, 2018 by Alan L. Sklover

. . . recording calls or meetings, even if legal in your state, is probably cause for getting fired at work?

It is common for employees to tell me “I know that it is legal to record a telephone conversation in this state, so I have been recording phone calls and meetings at work, and there is nothing they can do about it.”

That belief is simply and profoundly wrong. These examples should illustrate why:

• It is entirely legal to be drunk in your own home, or in the home of a friend. However, being drunk at work is surely good cause to be fired.

• It is entirely legal to walk around naked at home. However, walking around naked at work is surely good cause to be fired.

• Finally, it is entirely legal to use curse words at home. However, using curse words at work is surely good reason to be fired.

And, so it is with surreptitiously recording of telephone calls or meetings at work. If it is to be done at all, it must be done very quietly, very carefully, and totally discreetly, and not to be mentioned to others.

The seeming increase in employees recording conversations of all kinds at work is, I believe, a reflection of the decrease in trust felt for employers, managers, Human Resources staff, and even colleagues. And, this sense of distrust is being fueled, as well, by what we see between and among our political and other leaders.

Feel distrust at work? I can’t argue with your feelings, but recording conversations or meetings at work is, to my view, more self-defeating than helpful under almost any circumstance you may find yourself in at work.

To read a blog post I have written that provides a more in-depth explanation of tape recording at work, go to “Recording Conversations with Your Boss or HR” What You Need to Know.

Need to send a model memo or letter to make a request or complaint? A good checklist or form agreement? For a complete list of our Model Letters, Memos, Checklists and Sample Agreements, Just [click here.]

Interested in Membership? It’s free, and has advantages, including discounts on our products. Just [click here.]

Need a private telephone consultation? Just [click here.] Evenings and weekends can usually be accommodated.

© 2018 Alan L. Sklover. All Rights Reserved and Strictly Enforced.

Did You Know That . . .

Published on March 13th, 2018 by Alan L. Sklover

. . . the expense of using the services of an Executive Coach, Mentor or Recruitment Agency to assist you in navigating job and career challenges and opportunities may be Tax-Deductible . . .

Wisely navigating career opportunities and addressing career issues has become more challenging than I’ve ever seen it. Using a Career Coach, Mentor or other Career Professional may give you a significant advantage in doing so.

While I am not a Tax Advisor, I can point out that U.S. tax law does permit the expense of such services to be tax-deductible, with certain conditions and limitations.

It’s something to discuss with your Tax Advisor, and to take advantage of, to the extent you are eligible.

We “have your back” when it comes to job security and career success. “You are not alone . . . at work . . . any more.”™

Need to send a model memo or letter to make a request or complaint? A good checklist or form agreement? For a complete list of our Model Letters, Memos, Checklists and Sample Agreements, Just [click here.]

Interested in Membership? It’s free, and has advantages, including discounts on our products. Just [click here.]

Need a private telephone consultation? Just [click here.] Evenings and weekends can usually be accommodated.

© 2018 Alan L. Sklover. All Rights Reserved.

Did You Know . . .

Published on November 2nd, 2016 by Alan L. Sklover

. . . more employers are allowing employees to monetize unused vacation time . . . ?

More and more, employees are taking less and less vacation time, even though it is available to them.

According to the U.S Bureau of Labor Statistics, about 73% of American employees are entitled to paid vacation time. But studies show that less than 50% of them use it all, often citing the need to get things done for their employers. Some employees even believe that they might be retaliated against for taking off all of the time they are entitled to.

One study has even estimated that the number of earned but unused vacation days in the U.S. has risen to 222 million a year. That’s an awful lot of extra days of work! [If the average annual income of a person who gets paid vacation is $75,000, those unused vacation days are worth almost $67 billion.]

An increasing number of employers are now taking steps to permit – even encourage – their employees to “cash out” their unused time, some even offering to donate those funds to charities.

While taking vacation is widely recognized as an important thing to do for health and sanity, some feel it may be better to take at least part of that time and devote it to paying overdue bills, saving for the kids’ educations, or even putting a bit more away for retirement.

Better to take the time off? Better to save for a rainy day? One thing is for sure: Better not to have all of that value go to waste. Who knows . . . maybe you could use some of your unused vacation time to put a deposit on a vacation home.

Even if just as a new incentive to attract the best and brightest employees, this just might catch on.

It even might be wise to consider trying to negotiate into your next offer letter or employment agreement. Why not?

If you didn’t know that before, well, now you do.

That’s part of both our job and our joy at SkloverWorkingWisdom.com™

© 2016 Alan L. Sklover. All Rights Reserved.

Need to send a memo or letter? Need a good checklist or form agreement? For a complete list of our Model Letters, Memos, Checklists and Form Agreements, just [click here.]

Do You Know . . .

Published on August 4th, 2016 by Alan L. Sklover

. . . Recent medical studies indicate that early retirement may not be conducive to a longer life . . .

According to a recent study published in the Journal of Epidemiology and Community Health, working past the age of 65 can help you live longer, and keeping yourself physically active will likely keep you healthy.

In fact, the study found that working even one more year can cut down your risk of dying in that year by as much as 11 percent. Working even longer continues to yield longer lifespan even more.

The study also found that, for those who did retire, moderate physical activity – such as gardening, walking or dancing – at least once a week, resulted in people 2-1/2 times more likely to enjoy a healthy old age.

Retirees who participated in even more active sports, such as aerobics or jogging at least once a week, were 3-1/2 times more likely to be healthy.

So, no matter what your age, don’t put a stop to being active in all ways, exercising your mind and your body . . . act “old” and you will become “old.” It’s that simple.

It seems science and the old adage “Use It or Lose It” do agree.

© 2016 Alan L. Sklover. All Rights Reserved.


Alan L. Sklover

Alan L. Sklover

Employment Attorney
and Career Strategist
for over 35 years

Job Security and Career Success now depend on knowing how to navigate and negotiate to gain the most for your skills, time and efforts. Learn the trade secrets and 'uncommon common sense' of Attorney Alan L. Sklover, the leading authority on "Negotiating for Yourself at Work™".

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