Legal Compliance in Relocation Flashcards
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Read the first 7 Legal Compliance in Relocation flashcards as text
Under IRS Revenue Ruling 2005-74, what is required for an employer-assisted home sale to be treated as two separate sales, so home-sale costs are not taxable to the employee?
Answer: The employer must take on the benefits and burdens of ownership, and the employee must be fully released from the property
Two-sale (non-taxable) treatment depends on the employer or RMC taking real ownership risk and releasing the employee from all liability on the property.
Under the Tax Cuts and Jobs Act, which group could still exclude qualified moving expense reimbursements from income for 2018–2025?
Answer: Members of the U.S. Armed Forces on active duty moving under a military order
The TCJA suspended the moving expense exclusion and deduction for everyone except active-duty military moving under a permanent change of station order.
An employer uses the optional flat-rate method to withhold federal income tax on a $40,000 relocation payment, and the employee's supplemental wages for the year are under $1 million. What rate applies?
Answer: 22%
The optional flat rate for supplemental wages up to $1 million is 22%; amounts over $1 million require 37% mandatory withholding.
Which feature is required for an expense allowance plan to be treated as an IRS accountable plan?
Answer: Expenses have a business connection, are substantiated, and any excess is returned
An accountable plan needs all three: a business connection, adequate substantiation, and return of any excess within a reasonable period.
An H-1B worker is relocated to a worksite outside the metropolitan statistical area (MSA) covered by the original Labor Condition Application. What is generally required?
Answer: A new LCA and an amended H-1B petition before the move
Under Matter of Simeio Solutions, a move outside the LCA's MSA is a material change that requires a new LCA and an amended petition.
An interstate household goods mover gives a binding estimate. What is the shipper generally required to pay at delivery?
Answer: The estimate amount, plus charges for any extra services the shipper requested
A binding estimate fixes the price for the services listed in it; only extra services that are added or requested can increase the charges.
Which law sets the liability of interstate motor carriers for loss of or damage to household goods?
Answer: Carmack Amendment
The Carmack Amendment to the Interstate Commerce Act governs carrier liability for goods damaged in interstate shipment.