Common use of Relocation/Moving Expenses Clause in Contracts

Relocation/Moving Expenses. The congregation will reimburse up to a maximum of $10,000 in reasonable expenses associated with relocating the Interim Minister to the Congregation. All reimbursements and/or payments of moving expenses will be fully taxable under federal law and may be taxable under applicable state law. Federal tax law dictates that any direct payment for, or reimbursement of, employee moving expenses between 2018 and 2025 is taxable income and must be reported on the Minister’s W-2. The Minister must pay both income and self-employment taxes (15.3%) on this amount. To mitigate the tax burden, congregations are encouraged to “gross up” the moving expense by roughly 35% to cover this additional tax burden. (The gross-up amount is also taxable.)

Relocation/Moving Expenses. The congregation will reimburse up to a maximum of $10,000 15,000 in reasonable expenses associated with relocating the Interim Minister to the Congregation. All reimbursements and/or payments of moving expenses will be fully taxable under federal law and may be taxable under applicable state law. Federal tax law dictates that any direct payment for, or reimbursement of, employee moving expenses between 2018 and 2025 is taxable income and must be reported on the Minister’s W-2. The Minister must pay both income and self-employment taxes (15.3%) on this amount. To mitigate the tax burden, congregations are encouraged to “gross up” the moving expense by roughly 35% to cover this additional tax burden. (The gross-up amount is also taxable.)

Relocation/Moving Expenses. The congregation will reimburse up to a maximum of $10,000 15,000 in reasonable expenses associated with relocating the Interim Minister minister to the Congregation. All reimbursements and/or payments of moving expenses will be fully taxable under federal law and may be taxable under applicable state law. Federal tax law dictates that any direct payment for, or reimbursement of, employee moving expenses between 2018 and 2025 is taxable income and must be reported on the Ministerminister’s W-2. The Minister minister must pay both income and self-employment taxes (15.3%) on this amount. To mitigate the tax burden, congregations are encouraged to “gross up” the moving expense by roughly 35% to cover this additional tax burden. (The gross-up amount is also taxable.)