Q: We are offering an employee coming from India a relocation and furniture allowance. It is a lump sum payment part of their employment agreement and of our relocation policy. Would it be correct that it is taxed as extra pay and included in AWE or OWP and RDP or ADP?
A: Yes, will need to be taxed as an extra pay.
- AWE – Yes as part of the previous 12 months
- OWP – No not part of a regular week
- RDP – No not part of the week
- ADP – if RDP cannot be defined, then Yes as it is part of the previous 12 months