"Tax Assisted Lump Sum Relocation?" (job, companies, expenses)

[kenpo1980]

Hi all,

I know this issue has been hit several times on this board but I have a somewhat specific question that I can't seem to get answered by the HR from my company. I am relocating for a new job with my company and I am being given $10000 in relocation assistance. What I don't understand is that they say it is "tax assisted" and my HR person can't seem to give me a straight answer as to what this means. My interpretation is that it means my company pays the taxes and then I am responsible for taxes on anything at the end of the year that doesn't go directly to moving costs, is this correct?

Also, just out of curiousity, can anyone tell me why my company is having a third party relocation company cut me the check? This company hasn't really been helpful with the actual relocation process and have been down right unresponsive in many respects. For some reason I had to submit the lump sum agreement to this company, they submit it to my company for them to cut them a check to cut back to me. This seems extremely silly considering I work for one of the largest companies in the world and I have already started my new job. My company has been forking out hotel expenses the past three weeks because we are waiting on this lump sum payment. As a matter of fact my manager mentioned that this relocation company has been an issue for many managers trying to get an employee relocated in a timeley fashion.