Which Mobility Expenses are the Highest?

It’s crucial to know exactly where your money’s going to fully understand and manage your mobility costs. Statistics from 2015 research by Worldwide ERC® show the highest expenses are: Real Estate Issues Can Bust the Bank The largest employee relocation expense falls into the real estate category – typical employee relocation costs for renters are about $23,000, while they rise to an average of

Which Relocation Expenses Can Be Excluded from Income Tax?

Regardless of the distance or time of year, relocating for a job is an expensive undertaking. Fortunately, many employers have relocation packages in place that reimburse employees for some, or all, of their moving expenses. Some relocation expenses are excludable from income tax, while others are considered additional taxable income by the IRS. Learn more about relocation and U.S. taxes in our

Don't Confuse Relocation Reimbursement With A Bonus

Many employers offer bonuses or lump sums to employees agreeing to relocate. While this is a welcome benefit, it's important to understand the difference between relocation reimbursement and bonuses.  Bonuses and reimbursable moving expenses are additions to the employee's taxable income, requiring employers to also pay standard payroll taxes such as Federal, State and FICA. In a lump-sum bonus

Use Tiers to Avoid Exceptions in Your Corporate Relocation Policy

Many companies view a tiered corporate relocation policy as more work. It's true that your HR staff will have to take the time, and may enlist the help of a corporate relocation management company, to establish fair and appropriate tiers based on employee salaries or job levels and set the benefits offered in a corporate relocation package within each tier. But once that's done, a tiered policy

The Trade-Offs of Using Lump-Sum Relocation Packages

More and more businesses have been favoring lump-sum relocation packages for employees in recent years. After all, they are cheaper than just doing a regular relocation - right? Unfortunately, the truth of the matter is not always so cut-and-dry. One thing about lump-sum packages that is easy to overlook is the fact that, like many other "discount" programs, they can cost more than they save in

Moving Expenses Not Excludable from Income

Some moving expenses are not excludable from an employee's income per IRS regulations. Failing the distance or time test still renders all moving expenses either not excludable or non-deductible. However, thoroughly understanding the basics of both IRS moving tests and regulations helps individuals and companies comply with federal law and minimize negative tax consequences.

Moving Expenses Excludable from Income

Controlling moving expenses is a priority for both individuals and corporations. Executives and HR departments must thoroughly understand the definitions of qualified, excludable, deductible and non-excludable moving expenses. Two major categories dominate the excludable expense category: Household Goods (HHG) and Final Move expenses. Find out more about relocation and U.S. taxes in our free

What if a Pay Cut is in Order During A Relocation?

In rare cases, when an employee relocates, market conditions and cost-of-living in the new location warrant a pay cut. This may be necessary to keep the transferred employees' salary in line with existing employees at the location, to avoid legal and ethical issues, and to maintain company morale. If the amount of pay cut would be very small, it's better to keep employees at the current rate of

RELOCATION POLICY: WHICH TYPE IS BEST FOR YOUR COMPANY?

Before you begin setting domestic relocation policies or revamping your existing relocation policy, it's important to find out what's most important to your employees. You'll probably discover that home sale, spousal support, and finding a good neighborhood and a new home at a fair price rank near the top of the list for many mid- and top-level employees. Domestic relocation policies are broken

What are Your Biggest Employee Relocation Costs?

Have you ever considered the items that are your biggest employee relocation costs? An employee relocation expense can be broken into one of several categories: Household goods and people and pet moving Temporary housing Scouting/recruiting tours Expenses related to spouses, children or elderly parents Real estate expenses (buying and selling a home) Miscellaneous expenses (utility turn-on,