Microsoft Relocation Package

Hughes Network Systems game5
Dec 30, 2019 5 Comments

Hi,

In the offer letter, it states that “according to US Internal revenue code all relocation benefits provided to you are considered taxable compensation. Taxable moving expenses include relocation expenses paid to third party suppliers on your behalf. Payments that are considered taxable income are subject to tax witholding in compliance with IRS regualtions. To minimize your tax burden, Microsoft will provide tax gross-up on taxable moving expenses.”

I’m taking the relocation package option( the non lump sum option), I’m curious what do they mean by gross up on taxable moving expense.

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TOP 5 Comments
  • Microsoft giggityco
    Nothing for you. In simple terms when Microsoft pays for relocation services - it’s taxable component on your salary. To minimize effect on your net pay they will add tax amount to your first or second paycheck so that same can be deducted for tax purposes. If you owe $100 as tax, Microsoft will pay extra $100 to your paycheck
    Dec 30, 2019 0
  • Microsoft ByeBastrds
    They pay tax for you, in my case they paid more than tax as they assumed I was in highest bracket but I only had a couple of pay cycles.
    Dec 30, 2019 0
  • New / Strategy
    NonCodeSW1

    New Strategy

    BIO
    program manager
    NonCodeSW1more
    That's awfully upstanding of them
    Dec 30, 2019 0
  • Microsoft tunacan
    I agree with the comment above. If you see anything less than the amount they promise, go to payroll and make them adjust it.
    Dec 30, 2019 0
  • Goldman Sachs mynameisb
    What's your msft TC?
    Dec 31, 2019 0

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