Crafting relocation policies can be time consuming and stressful. Every transferee needs a different policy based on their unique needs, but it is difficult to give everyone what they want without taking away too much time from HR and Mobility departments. Luckily, core/flex relocation policies (if utilized properly) can save you time and money. We'll show you how.
Check out our eBook and webinar for more information!
eBook: http://resources.urbanbound.com/core-flex-relocation-policies-to-make-life-easier
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27. complex
It does this by allowing transferees
to pull in the pieces of a relocation
policy that they need, and then
build upon them as those needs
become more
34. pet assistance
spousal support
temporary living
homefinding trip
in-transit storage
It’s a list of anything from pet assistance, to spousal
support, to temporary living, to homefinding trips, to
storage—the options endless. A company would
have a detailed list of benefits (along with what
coverage is included in those benefits) and then
based on the level of the transferee, allow them to
choose more or fewer options.
35. Note:
These benefits aren’t paid to
the transferee, but rather
something they use through
the tool being used to
facilitate the relocation
(such as a relocation management software)
50. homefinding trip
Expenses related to the homefinding trip
for you and one other adult member
The trip must not exceed 3 days/2 nights
Round trip transportation
Reasonable lodging – arranged through the
company’s service provider
A per diem for meals, not to exceed $55
per day per person
54. dollar amount
requires more monitoring
have to be much more on top of
making sure that the transferee
is staying within their budget.
55. Here’s an example of
how that
homefinding trip
might change using
a numerical-cap:
56. Expenses related to the homefinding trip
for 1 person
Trip duration of 2 days/1 night
Round trip transportation
Reasonable lodging – arranged through the
company’s service provider
A per diem for meals of $45 per day
homefinding trip
57. As you can see, the
transferee can manipulate
the benefit a little bit more.
65. “If you are renting a home or apartment, you
should understand the conditions for
terminating your lease. You should obtain a
copy of the lease to review your options and
understand what the transfer clause is that
you would have to break. You may be
required to pay a lease cancellation fee, which
is reimbursable for up to one month’s rent.
You should provide the employer a copy of
the lease agreement in regards to cancelling,
along with proof of payment.”
73. it’s the responsibility to educate employees
on tax ramifications associated with relocation
74. it’s the responsibility to educate employees
on tax ramifications associated with relocation
non-deductible
lump sum/mea
temporary living
car rental
return trips
etc.
75. it’s the responsibility to educate employees
on tax ramifications associated with relocation
non-deductible
lump sum/mea
temporary living
car rental
return trips
etc.
tax-deductible
shipment of household goods, vehicles, and pets
first 30 days of in-transit storage
the final move
78. Acme relocation policy
Lump sum = $12,000
With lump sum With core/flex
• $12,000 becomes $7,800
(Assuming a 35% tax)
• Must gross-up lump sum
to $16,200 for transferee
to receive $12,000
Loss of $4,200
• Lump sum is used for less,
so amount can be reduced
• To provide a $3,000 lump
sum, employer only has to
gross-up to $4,050
Loss of $1,050
79. Back to those
non-deductible expenses.
Let’s see what the
final move entails.
80. the final move includes costs incurred
between the last night in current
location to first night in new location
Requirements
- route taken must be the most direct
- must be driving 350 miles per day
- if distance is less than 500 miles,
employee must drive
- if distance is over 500 miles, flight
must be purchased 2 weeks in advance
- all mileage is reimbursed at current
mileage rate provided by the IRS
88. “what do i intend my
transferee to use this
money for?”
89. Once you decide, you
can then choose which
option is best for you.
90. sum of money for untracked expenses
sum of money for tracked,
relocation-related expenses
=MEA
complete control, providing the
most structure
=lump sum
=flex benefit
91. this will help you
decide which form
the money should
come in.
92. believe it or
not, these
policies can
span your
highest levels
to your
Lowest levels.
98. While you should always
offer assistance with
homesale, this is where
it becomes
critical.
99. here is how renters
and homeowners
differ in terms of
benefits:
100. Renter
- lease cancellation
- lease acquisition
- finder’s fees
- guided tours
or: flex benefits for
renting-related costs for
up to $1,000
Homeowner
- closing costs
- home inspection
- loss-on-sale
- loan fees
or: flex benefits for
homesale-related costs for
up to $5,000
101. you can also offer
more extensive
flexible benefits,
such as…
102. lifestyle transition assistance
what’s included
- Career assessment and coaching
- Resume preparation and production
- Cover & reference letters preparation
- Interview training and networking strategies
- Internet job postings and community research
what it is
Lifestyle transition assistance is available to you and your
family during and after your relocation. You’ll be paired
with a consultant to assist you, along with a career
relocation service that will give help to anyone facing a
career or job change.
103. this is expensive
and can be difficult
to administer, so it
doesn’t need to be
given to everyone.