Gross-up Management / Year-end Reporting
The tracking of relocation-related expenses and calculation of the applicable tax gross-up per the Company methodology is critical. GlobalLink® allows for the gross-up calculations of all taxable relocation expenses paid to the transferee or on their behalf.
Gross-up calculation methods vary, and our in-house expertise ensures the company-selected methodology is applied to all payments. By maintaining our gross-up engine with the latest tax law changes, companies save time and money with built-in accurate tax calculations for 90+ countries including state and local taxing authorities. Proper tax treatment is key to managing a compliant program.
Payroll Instruction and Reconciliation
InterLink’s team designs custom gross-up calculations and reports to payroll to meet the needs of our clients. Working with tax providers for international assignees and cross-border relocations, InterLink coordinates the data reporting needed for the tax equalization process.
At year-end, Relocation Tax Reports (RTR) are provided to the domestic relocating payroll departments for distribution. This will assist the transferees in understanding what relocation-related payments have been paid to them or on their behalf. For US relocations, this document should be used to complete Form 3903, which is a part of the US Income Tax Return.
Cost of Living Allowance (COLA)
A Cost of Living Allowance (COLA) is a compensation tool that is used to address variances in local compensation plans and to offset the higher cost of living in a new work location.
Relocating within the same country can reveal the material regional cost of living differences. A COLA allows an employee to soft-landing into a higher cost of living experience and are typically provided over a specific term, in reducing amounts. InterLink consults with clients to develop a cost of living policy and qualifying criteria.
Working with data service providers that are industry leaders, InterLink aids in customizing the indexes to reflect Client policies. InterLink’s attention to detail approach including embracing our own data, results in avoiding excessive payments.