The most sweeping US tax legislation since the Tax Reform Act of 1986 was signed into law on
December 22, 2017. The Tax Cuts & Jobs Act ushered in many changes to our tax code, some of which impacted the mobility industry directly. The most significant change for mobility was the elimination of the exclusion from taxable income of household goods (HHG) shipment and final move expense reimbursements or payments.

Recognizing tax changes that affect your bottom line

The elimination of the exclusion is significant in that these expenses are now subject to income taxation and, as such, increase the tax assistance (gross-up) costs for employers. A side effect of this change is the spotlight it has put on the commission or rebate portion of HHG invoicing.

Traditionally, relocation management companies (RMCs) have earned a “commission” when booking HHG shipments with a carrier