A new job means a new city — and a car that has to get there. You assume the company covers it, but the package is vague, and a wrong guess leaves you fronting hundreds or owing tax you did not expect. Knowing how relocation packages handle car shipping protects your wallet. Here is who pays, how it is taxed, and what to confirm first.
The short answer: Whether your company pays to ship your car depends on your relocation package. Some employers book and pay the carrier directly; others reimburse you after you submit a receipt. Direct billing is the safer model. And under current tax law, employer-paid shipping is often taxable income, so confirm whether your package is grossed up.
Often, yes — if car shipping is written into your relocation package. The catch is that packages vary widely, and "we'll help with the move" is not a guarantee. You have to read the policy and confirm the details.
This page is the employee's side of the question. For the full service and the employer's view, see our corporate car relocation page. Start by getting your package terms in writing.
There are two basic models, and the difference matters to your cash flow. With direct billing, the company pays the carrier directly. You front nothing and never touch a receipt.
With reimbursement, you pay the carrier first, then submit a receipt and the bill of lading to get paid back. That means money out of your pocket for weeks. We tell employees that direct billing is the lower-stress option when the company offers it.
The honest downside of reimbursement: if your paperwork is incomplete, the payback stalls. Keep every document.
Relocation packages usually come in three shapes. A lump-sum gives you one fixed amount to spend however you like. Direct billing has the employer pay each vendor. A managed move routes everything through a relocation company.
The lump-sum carries the hidden risk. If car shipping costs more than you budgeted, the overage is yours. We tell employees to price the real lane on the car shipping calculator before accepting a lump-sum, so the amount is not a guess.
Our guide on what corporate car relocation costs shows how much to budget by distance, so a lump-sum check is quick.
Here is the surprise that catches relocating employees. Under the federal change that took effect in 2018, employer-paid moving costs have generally counted as taxable income to the employee. That can include your car shipping.
Many companies "gross up" — they add money to cover the tax, so the benefit does not shrink your take-home. Not all do. We tell employees to ask payroll one direct question: is my relocation grossed up?
Important caveat: tax rules change, and this provision has a scheduled sunset. We are a car shipping company, not tax advisors, so confirm the current-year treatment with payroll or a tax professional before you count on a number.
A few questions save real money and stress. Get the answers in writing from HR.
We tell employees that five minutes of questions up front prevents the most common relocation money surprises.
Some employees ask whether to swap the package for cash. The answer turns on taxes and your real costs. A direct-billed, grossed-up package can be worth more than the equivalent cash once you account for the tax you would owe on a payout.
Run the actual numbers before trading a managed move for cash you then have to spend and report. If your employer runs a program, our guide on how employers set up direct billing explains what that side looks like. Then price your route on the calculator and verify any carrier with our FMCSA lookup.
Skip the averages. Our calculator pulls live diesel prices and real Google Maps distance for an actual price range on your exact route and vehicle — no spam, no obligation.
Calculate My Costor talk to a dispatcher: 1-888-706-8784
Read the relocation policy or offer letter, and ask HR directly if it is unclear. Packages vary widely, so do not assume. We tell employees to get the answer in writing, including whether the company books transport or reimburses you. A verbal "we cover the move" is too vague to plan around.
It often is. Under the federal change that took effect in 2018, employer-paid moving costs have generally counted as taxable income to the employee. Many employers "gross up" to cover that tax. The rule has a scheduled sunset and can change, so confirm the current-year treatment with payroll or a tax professional.
Gross-up means the employer adds extra money to cover the tax on your relocation benefit, so the shipping does not cost you out of pocket. Not every company does it. We tell employees to ask whether their package is grossed up, because without it, a taxable benefit shrinks your take-home pay.
Direct billing is usually safer. The employer pays the carrier directly, so you front nothing and any overage is their problem. A lump-sum hands you a fixed amount, and if car shipping costs more than you budgeted, the difference comes out of your pocket. We tell employees to favor direct billing when offered.
Then you pay the difference, which is the hidden risk of a lump-sum. People often under-budget car shipping and get surprised. We tell employees to price the actual lane on a calculator before accepting a lump-sum, so they know whether the amount is realistic for their move.
Usually yes if you are reimbursed, and sometimes no if the company uses a preferred vendor. Check the policy. We tell employees that even on a company-arranged move, you can ask to verify the carrier. A direct-billed program often already uses a vetted transport partner.
Keep the carrier invoice or receipt and the signed bill of lading proving delivery. Most employers require both. We tell employees to photograph the car at pickup and delivery as well, since a clean paper trail settles any condition or payment dispute faster.
It depends on the policy, and many cover only one. Dual-car households should ask specifically. We tell families to confirm the second-vehicle rule in writing before booking, because assuming both are covered and being wrong is an expensive surprise on a multi-car move.
Usually, and often with more generous terms. Executive packages tend to cover full vehicle shipment, sometimes enclosed transport for a high-value car. We tell executives to confirm whether the package includes white-glove handling, since leadership moves often run on a tighter, higher-touch schedule.
It depends on the tax treatment and your actual costs. A direct-billed, grossed-up package can be worth more than equivalent cash once taxes are counted. We tell employees to compare the real numbers, including the tax hit, before trading a managed move for a cash payout that you then have to spend and report.
Tell us where you're shipping — we'll handle the rest. No obligation, no hidden fees.