2020 Year-End Reconciliation Process for Relocation Expenses

If you manage your company’s relocation program, you should start preparing now to ensure a smooth 2020 year-end reconciliation process. Since many corporate departments interact with the relocation process, getting an early start will help everyone understand what they need to provide. Departments that manage accounting, travel, tax issues, and human resource functions may need to provide information for the reconciliation. A best practice is to focus on attention to detail from the beginning of the process.

Best Practice: Follow These 5 Steps to Ensure a Smooth 2020 Year-End Reconciliation Process

Step 1: Start by Writing a Thorough Reconciliation Checklist

When looking into your company’s relocation process, start noting the specific data points that apply in a well-written checklist. For example, considering the scope of a transferee’s relocation-related data, you will need the following information:

• Salaries and wages
• Compensation
• Taxes (include any tax filing services for those eligible)
• Imputed income (non-cash compensation)
• Equity

Equally important are the dates that impact timing of the 2020 year-end reconciliation process. Be sure to correctly note and plan for dates such as:

• Tax filing deadlines
• Reporting deadlines
• Early cutoff
• Due dates to receive information

Step 2: Create Calendar Invitations for a 2020 Year-End Reconciliation Process Meeting

Identify all of the employees who will need to provide information for the reconciliation. Check their calendar availability and plan a meeting where all can attend. Be certain to look into vacations and holiday timetables so that everyone can be available for the meeting. Also, be sure to provide adequate notice so that invitees can make inquiries. For example, they may ask about their role in the process, or what data they should provide. Provide as much clarity as possible so they will know what to expect.

Step 3: The Three Most Important Words in a Reconciliation: Accuracy, Accuracy, Accuracy

It might go without saying, but it is critically important that all data reported for the 2020 year-end reconciliation process is accurate. Accounting systems, tax filing programs, and all other aspects of the process hinge on accuracy of the data. Incorrect data could lead to missed deadlines, additional fines and fees, and costs related to rework such as refiling tax paperwork. Before hitting the send button, confirm the accuracy of these important points:

• Salaries and wages
• Health and insurance benefits
• Personal time, sick days, vacation
• Addresses
• Taxpayer Identification Numbers
• Social security numbers

A good approach is to request an audit of the information and the process. Your company’s Accounting Department may include an internal financial auditor, or perhaps the Quality Department may have a process auditor. See if they might conduct an audit of the reconciliation. Alternatively, one of your department colleagues might be able to provide a review to check for any inconsistencies.

Step 4: Check all of the Company’s Final Year-End Reports

At this point you should have most of the data you need to prepare your reports. However, there may be something that was missed that will later show up in a year-end report. Also, any late data entries at the end of the year should be counted as well. Check all company year-end reports with data that needs to be included in your 2020 year-end reconciliation process.

Step 5: Press that Send Button!

Once you have confirmed all of the reporting deadlines for every country and entity that requires a report—press that send button! Keep in mind that some transferees may need to be grouped together for reporting to certain tax-related organizations. A best practice is to send data and reports early, before the deadlines, and confirm receipt at the entity. Once you have sent data, begin the payment processes. Identify when final tax payments are due for the year, and then arrange for the payments to be submitted.

What Does This Mean?

Companies should always follow best practice recommendations to ensure reconciliation data is accurate. They should also ensure on-time reporting for their 2020 year-end reconciliation process. By following these best practices to confirm data accuracy and filing dates, companies can avoid errors. They can also avoid the cost of any fines, fees, and necessary rework.

What Should Employers do about The 2020 Year-End Reconciliation Process for Relocation Expenses?

Employers planning for their 2020 year-end reconciliation process for relocation expenses should work with a qualified and experienced Relocation Management Company (RMC). RMCs will be able to help companies understand all of the required inputs for a successful reconciliation. They can also share best practices to ensure data accuracy and on time reporting. Employers should request an audit of their reconciliation to ensure data is correct and important dates are documented for action.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients with reviews of their reconciliation processes. Our team can help your company understand how to design a 2020 year-end reconciliation process of relocation expenses that leverages best practice recommendations. As a result, your company’s processes will ensure data accuracy and on-time reporting.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation^® technology platform.

Contact our experts online to request an audit of your year-end relocation expense reconciliation, or give us a call at 800.617.1904 or 480.922.0700 today.