How to Get the Most Out of Your Employer Relocation Package
July 12, 2018
You’ve gotten the call; another job opportunity is available – but it’s across the U.S. or an ocean. As a mover who handles employee relocation logistics day-in and day-out – we wanted to offer up some tips for how to ensure you’re getting the most out of your relocation package and move.
Ask Questions, Don’t Assume
According to Zillow, over 70 percent of customers offer relocation incentives for employees or new hires. If a relocation package isn’t mentioned during your new job offer, you may need to initiate the conversation. According to ERC, in 2012 employers spent between $19,000 to move a new hire renter to $90,000 to move a current employee homeowner. Be sure to research what it will cost out-of-pocket if you would move yourself, consider time off work and ancillary costs in order make a case for your relocation reimbursements.
Ask for Extras
Know what kind of extras you can ask for – if you’ve never relocated before or haven’t moved internationally, here are a list of things you can ask to have included in your relocation package.
- Vehicle transfers
- Cultural training
- Closing cost payment
- Mortgage points buy downs
- Employment assistance for your spouse
- Guaranteed buyout (GBO) for your home
- Destination services like help with bank set-up and grocery shopping
- Language training
- Relocation bonus
- For short-term assignments: bonus if project is completed early
DIY Options
If your relocation package is very minimal, you may want to explore doing parts of the move yourself. Sometimes companies will offer lump sum allowances for relocation services – you can choose to do parts of your move yourself and pocket the cash.
Know The Tax Stuff
Relocation expenses can often be tax deductible if they meet the IRS requirements. Be sure to ask your accountant if your relocation meets the distance and time requirements. Also know that payments can be made to your moving company directly from your employer, that way the amount doesn’t have to be reported as income. If your employer gives you a lump sum, that amount will usually need to be taxed as earnings. Be sure to ask your accountant to help you look at all your options.
Once you have your relocation package squared away, we hope you’ll invite Beltmann into the mix to help you with this new chapter in your life. We hope these tips will help you maximize your relocation incentives.
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