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What is an employee service agreement?

This agreement lays down the terms of employment, agreed upon by the employer and employee. Whether stated explicitly in the agreement or not, both the employee and the employer have the duty of mutual confidence and trust, and to make only lawful and reasonable demands on each other.

Is a recruitment incentive taxable?

Federal law requires that employees pay payroll taxes on lump sum recruitment incentive payments.

What is a recruitment incentive?

A recruitment incentive is an incentive an agency may pay to a newly appointed employee if the agency has determined that the position is likely to be difficult to fill in the absence of such an incentive.

How much does federal government pay for relocation?

Payment. A relocation incentive may not exceed 25 percent of the employees annual rate of basic pay in effect at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years).

How do you calculate recruitment incentive?

The maximum incentive amount is calculated by multiplying the employees annual rate of basic pay (as in effect at the beginning of the service period) maximum incentive percentage length of the service period.

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