Practice Management

We have historically reimbursed new physicians for moving expenses up to a set limit, provided they met the IRS rules (moving 50 miles, etc.).

In light of the fact that under the new tax laws such reimbursements are no longer deductible to the employer, and they are taxable income to the physician, have you made changes on this topic?

Continuing to reimburse?  Provide some alternative form of compensation?  Discontinued?

Thanks

David Smith, FACMPE  |  Executive Director  |  785.393.8387

We have historically reimbursed new physicians for moving expenses up to a set limit, provided they met the IRS rules (moving 50 miles, etc.).

In light of the fact that under the new tax laws such reimbursements are no longer deductible to the employer, and they are taxable income to the physician, have you made changes on this topic?

Continuing to reimburse?  Provide some alternative form of compensation?  Discontinued?

Thanks

David Smith, FACMPE  |  Executive Director  |  785.393.8387

David:

If the employer includes the reimbursements in the employees income, I do believe they can then deduct it as an expense.  It is only non-deductible if not included in income of the employee.  Of course all the associated taxes, etc. of wages are also a factor.

We also believe it is deductible by the employer if you include the reimbursed amount in the employees income.  Our group has historically reimbursed moving expenses (up to a fixed $ amount upon submission of receipts) and will continue to do so.  Being taxed on that reimbursement isn't great for the employee, but it is still better than no reimbursement at all ...

Thanks,

Mike Madler

Newport Harbor Radiology

David:

If the employer includes the reimbursements in the employees income, I do believe they can then deduct it as an expense.  It is only non-deductible if not included in income of the employee.  Of course all the associated taxes, etc. of wages are also a factor.