Published on March 31, 2020
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CARES Act—What it Means to Mobility

CapRelo is curating information from our suppliers, clients and partners to share insights relative to transferring employee impact. Please note that with changes coming frequently, questions on specific cases should be directed to your Client Services contact or to info@caprelo.com.

CARES Act Update CapRelo

The impact of the CARES Act can be confusing. The following is straight-forward guidance on how the CARES (Coronavirus Aid, Relief, and Economic Security) Act may impact global mobility programs. 

The Bill
This $2 trillion coronavirus economic stimulus bill was signed into law on March 27, 2020.

While this legislation is aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus, certain considerations should be discussed related to global mobility programs.

2020 Recovery Rebate
International assignments tend to have an impact on an individual’s Adjusted Gross Income (AGI) as many employer-provided benefits and allowances are considered as taxable income.

Given an individual’s AGI is the qualifying factor for the 2020 Recovery Rebate, it is advisable to evaluate the impact assignments have on an assignee’s AGI. Then you can determine if action should be taken to address situations where AGI exceeds phase-out limits due to assignment related payments, thereby reducing or eliminating the rebate.   

Foreign Earned Income
On the other hand, U.S. citizens and residents living abroad might be utilizing the Foreign Earned Income exclusion under Code § 911. This may create a situation where an assignee receives a rebate check as a result of their assignment and reduced AGI due to the exclusion – even though their stay-at-home income would have exceeded the phase-out limits.

As a leader in the global mobility space, CapRelo works to keep our clients and their transferees informed about the ever-changing landscape during these times of uncertainty. To learn more about working with CapRelo as your corporate relocation partner, contact us at info@caprelo.com.

 

Barry J Morris, President and CEO, CapRelo

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