MINNEAPOLIS (June 11, 2019) - HomeServices Relocation, a division of HomeServices of America, a Berkshire Hathaway affiliate, announced today the public release of a white paper describing the unintentional consequences of tax law change and the potential for hidden savings for employers who use the services of a relocation management company (RMC).
“Putting the spotlight on taxable commissions and rebates” is a white paper written to assist human resources, procurement and financial professionals understand how tax law changes ushered in by the Tax Cuts & Jobs Act of 2017 are affecting employer costs associated with household goods (HHG) shipment and expense reimbursements or payments for their employee relocation programs.
The white paper, written by Steven John, SCRP, SGMS-T, President and CEO of HomeServices Relocation, a full-service, global relocation management company, details how traditional RMC revenue models have not adjusted for the underlying results of these tax changes, thereby leaving revenue earned as rebates or commissions in the taxable column on their client billing.
“It needlessly forces an increase in gross-up expense for the employer,” says Steven John. “It is a cost control issue that no one is talking about. Properly classifying commissions as ‘fees for services rendered’ and splitting those fees out separately on partner invoicing saves on gross-up.”
About HomeServices Relocation, LLC:
HomeServices Relocation, LLC is a full-service relocation management company that designs flexible relocation management solutions for corporations worldwide. Through its national network of relocation associates, HomeServices Relocation offers clients integrated relocation services including brokerage, mortgage origination, title, insurance, closing and other home-related services. HomeServices Relocation is a division of Minneapolis-based HomeServices of America, a Berkshire Hathaway affiliate and ranked as the largest real estate company in the United States.
Information about HomeServices Relocation is available at www.homeservicesrelocation.com
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