Facebook relocation taxes

Oct 28, 2021 5 Comments

Someone made a post about whether FB's core relocation package is taxable or not on here awhile ago but I can't find it anymore. The apparent answer in that post was that it is taxable but that FB pays the taxes on your relocation benefits. Based on reading the relocation policy on the internal website, I think that's not entirely accurate.

It appears that FB pays the withholding on the taxable relocation benefits, but if the withholding is less than what you owe in taxes on the relocation benefits, then YOU are responsible for the remainder of the taxes. However, if the withholding is more than what you owe in taxes, then it seems you get to pocket the difference when filing tax returns. So seems like the best scenario would be if more is withheld than taxes owed on the taxable relocation benefits. Did anyone else interpret this way or am I full of shit?

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TOP 5 Comments
  • Microsoft / Eng
    iQin80

    Go to company page Microsoft Eng

    iQin80
    This is actually accurate. They make a best estimate on tax withholding. It's called a gross up and I've had this done with two different employers and it seemed to work well for both. This is fairly standard for many employers with a more competitive employee/position so it's not just a Facebook thing.
    Oct 28, 2021 3
    • Microsoft / Eng
      iQin80

      Go to company page Microsoft Eng

      iQin80
      As long as the tax bill isn't excessive, having the withholding causing you to owe taxes when filing is never a bad thing. If you get a refund you're doing it wrong and you let the government take more than it was owed from you and they got to use it interest free.

      Just my thoughts on that part of the scenario.
      Oct 28, 2021
    • OP
      Wait are you assuming it’s not a bad thing because we could invest the under taxes money and potentially net more from the investing?

      I don’t think getting more withheld than owed is always doing it wrong. For example, NY state just increased their withholding to like 13% for bonuses when their highest state tax only goes to 10%. Pretty dumb if you ask me. Idk how it works with federal taxes. This is my first real job so haven’t had much experience with withholding before
      Oct 28, 2021
  • Dell
    UDam06

    Go to company page Dell

    UDam06
    Following
    Oct 28, 2021 0