Should a Veterinarian be Reimbursed for Moving Expenses?
Should a veterinarian be reimbursed for relocation expenses? And the answer to this is yes, you should be reimbursed by your employer. You might be moving across the state, out of state, across the country, or wherever it may be from, if it’s a reasonable distance, your employer should provide you with some type of relocation reimbursement. It’s typically structured in one of three ways in your employment contract. So, you should read it carefully to know what steps you need to take to receive that reimbursement. The first way and I would say the most common way is it’s almost structured as a bonus. Sometimes they call it a relocation allowance, or relocation bonus, and they will just give you a flat fee upfront anywhere between 10,000 to 20,000.
The important thing to remember is that if it’s structured this way as a bonus in your veterinary employment contract, it would be considered income and therefore, your taxes will be taken off the top. So, you won’t be receiving that full amount. Whatever it is, if it’s structured as a bonus, just keep in mind you will have taxes taken off from that amount before you receive it. But once you receive those funds, then you can use them however you like, if it’s reasonable for relocation. The next way I typically see it structured is you provide your employer with receipts of anything that has to do with reasonable relocation or moving expenses, and then they will reimburse you directly. It’s typical. There’s normally a max of how much they will reimburse. And again, it’s normally between 10 to 20,000.
And then, you don’t have to get prior approval, you just need to give your receipts. And then the third way is probably the least common I’ve seen in veterinary employment contracts, but that’s where the employer would pay the moving expenses or like the moving companies directly. And most of the time, if it’s that scenario, you do have to get prior approval from the employer that they’ll reimburse those companies. That’s kind of the third way. Again, you have to read your employment agreement to know, do you need prior approval? Is this going to be a lump sum that they’re going to give you and how that’s kind of structured?
And then lastly, I want to discuss, if you are granted relocation, expenses, allowance, reimbursement, or however it’s structured, there’s always some type of payment like a payback provision or forgiveness period. Typically, it’s anywhere between one to three years, you have to work for this practice or clinic. But if you terminate your employment with them before the end of that time, you will either have to pay back the full amount of relocation expenses that they’ve reimbursed or given you or sometimes they’ll prorate it per month of your employment. Let’s just say, for example, you must work for the company for three years. If you terminate your employment with them before the three years, it’s prorated. So, if you work for one and a half years, and terminate your agreement, then you’ll likely have to pay back half of those expenses or allowance and give up any accrued PTO. So again, you want to keep that in mind. Whenever you sign these contract agreements, you’re looking to the future. You’re going to be able to fulfill this contract because if you’re not, you really want to seriously consider taking that amount of money at the beginning.
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