6 Questions to Ask About Your Employer Relocation Policy Before Relocating for Work
Relocating for a new job is exciting, but there is a lot to consider before uprooting your life and moving across the country. We hope these questions will help you decide if relocating is a good idea for you and your family.
Remember, how a company handles their employee relocations is a great indicator of what it’s like to work for them.
What’s included in the relocation package?
Is the relocation package a one time lump sum amount, or is there an option where a relocation company handles your move for you?
Some companies will only offer benefits if you ask, like when you start a new job and the starting pay isn’t the highest amount HR can offer.
Is the relocation tax assisted?
As of the 2018 tax changes, relocations are no longer a business expense. Since relocations now count as taxable income, the tax burden can be substantial.
It’s crucial your package either includes extra funds for tax assistance, or your company offers “gross up” to offset taxes owed. Taxes can be as much as 30-40% of the relocation cost.
*Please note we are not tax professionals, if you want to know how your relocation will affect your specific tax situation you will need to speak with a tax professional.
Is there a repayment agreement?
Relocations can be pricey, anywhere from $20,000 to $100,000+ depending on your family size, and home size. Some companies don’t require a repayment agreement, others may require you to agree to 2+ years.
It’s important for you to decide of the repayment terms will feel stressful later or not. If you’re not sure if you can commit to the company as long as the repayment terms but still want to take the position, there are plenty of ways you can keep relocation costs down.
If your move is handled by a relocation company, are they transparent with costs?
Relocation Management Companies (RMC’s) can be a great help. They often have contracts with professional moving companies that offer perks you won’t get self booking a move.
However, they may push you into services you don’t need, or may not be transparent about how you can save costs since it could affect profits. Like most areas of American life, you must be diligent in advocating for yourself.
Are there homeowner benefits?
Some relocation policies will cover realtor fees and/or closing costs if you sell a home in order to move. These benefits have become less common, but are still around. It’s always worth asking!
How much temporary housing is there?
Temporary housing time can really reduce stress, but can be pricey. Costs are comparable with hotel stays in the area and can add up, but having a home base while your goods are in transit is absolutely worth it.
This also gives you a chance to explore different neighborhoods, and find a home that will work for your family for years to come instead of jumping into something that isn’t a good fit and having to move again in the next year.
If you have a fully assisted package you can expect to see anywhere from 14 to 75 days of temporary housing. 14 is on the low end and makes for a stressful move since household goods shipments can often take longer than 2 weeks. Expect to see somewhere between 30 and 60 in a solid benefits package.
These answers are a small sample of how the insider knowledge of your Relocation Concierge can help with your move. We make moves stress free, from negotiations to your home goods being delivered. As our client we’re only a text or call away. No automated systems, no robots.
Reach out to speak with your very own Relocation Concierge today!
