Employee moving expenses are all expenses you have made when changing job and moving to another city alone or with your family. Employee moving services are part of the employee benefits that are compensations, provided to employees in addition to their salaries (daycare, retirement benefits, social security and other).
Employee moving expenses information
Employee relocation services are beyond moving companies’ competence. Employee moving is part of the corporation’s policy and it is administrated by corporations’ human resources departments. Before contacting moving companies examine your future employer’s social policy and employee benefits that are added to your wage. Contact human resources specialists if you have any additional questions. Some companies provide accurate online information on their websites, where you can find what arrangements must be done in advance. Many national and global corporations pay for the relocation services for their new managers, engineers and specialist. Global and Multinational corporations have stimulating policy for workforce mobility. International assignments are common and actuated by relocation programs. Employee moving from one state to another is common event due to the economy specifics. Many major interstate corporations have agencies and offices in different states.
Some corporations and companies offer online employee moving expense reimbursement worksheets and tax forms where you can list all of the moving expenses you’ve made. Also find out witch moving expenses will be treated like employee moving expenses that are to be reimbursed. Employee moving expenses reimbursement may include gas expenses, plane tickets, transportation and storage of household goods, but it may exclude traveling expenses like meals, house hunting costs, motel taxes. You can get reimbursement of your gas expenses, but many companies offer mileage rate deduction. Employers pay per mile of your course and if you are driving consider your fuel consumption.
You can calculate your moving costs fast and easy with the free moving costs estimator.
Employee moving expenses are generally 2 types:
- Reimbursement of moving expenses paid directly to the employee.
- Reimbursement of moving expenses paid to third parties (like moving companies, real estate brokers and so on).
Employee moving expenses reimbursements may be in addition to your basic salary but they are often not taxable payments. There are taxable payments to third parties and non-taxable payments to third parties. These regulations are included in the companies’ tax forms, witch you must examine in advance.
Employees moving to another state or international employee moving often is entrusted to particular agency that deals with:
- Visas and stay permissions.
- Language teaching.
- Finding a job for the partner.
- Finding a goof school for the children.
Employee relocation packages commonly include:
- Home search service. This service answers to your income prospects and family needs of buying or renting a house. It saves you time and money. If there is no such service provided, you may get your house hunting expenses reimbursed – any expenses made due to pre-move house hunting, like lodgings, real estate services provided by brokers, and travel expenses.
- Job hunting service for your spouse. When family is relocating often one of the partners must resign. Finding a new job in an unfamiliar environment is stressful. Your company may offer job solutions for your partner and help with a job finding strategy.
- Moving expenses reimbursement when using a full service movers, a self moving service, storage service or car shipping service.
- Insurance and storage of household goods. You usually get this service if you need extra time for storage that exceeds the moving company free storage period in your moving package.
- Assistance in finding a new school for the children. Moving with children, especially during school year is a real challenge and it includes finding a school that answers to your kids’ education needs and the new home location capacity.
- Pre-move tours and introduction to your new surroundings.
What the employee moving package often doesn’t include:
- Mortgage expenses and losses.
- Cost of having to join new sport or social clubs.
- Moral losses compensations.
Employee Relocation Tips:
- Always consider school taxes at your destination. They may be higher than what you are used to. You will probably have to use private education for a while. Does your new salary reply to the additional education expenses that are expected?
- Take in mind commute times, tax rates, average home cost. Your job offer may appear to be better for your career. Climbing up the ladder doesn’t have to be at all costs. Consider if moving will truly improve your financial state.
- Consider your new area perspectives for having a life of full value. Which are the advantages of your new location for business, raising a family or social life?
- There might be a set amount limit for employee moving and relocation expenses reimbursement. Any expenses beyond that sum wouldn’t be reimbursed.
Employee Relocation Council, a relocation services industry trade group, have made rankings of the U.S. cities regarding their employee moving capacity. These ranking are determined by whether new employers continue living in the new cities and working for the companies that moved them.
Suitable cities for employee relocation with families are: Austin, TX, Washington DC, Louisville, KY, Athens, GA.
Successful moves for single, unmarried employers are made to San Francisco, CA; Jersey City, NJ; New York City, Long Island, NY; Portland, OR; Vancouver, WA; Atlanta, Georgia.
Employee Moving Checklist
- If you are interested in finding a new job and place to live, first explore for the right job. It could be done in the job opening sites; carrier centers of the organizations and companies you desire to work for.
- Once you’ve got the job, examine your company’s employee benefits. Look for possibilities of using employee moving services provided by the human resources department of your future company. Check employee moving expense reimbursement worksheets with listed deductible expenses.
- Search for moving company or moving service that replies to the employee moving expenses reimbursement, covered by your employer. If you are wondering how to find a reputable moving company – get online free estimates, compare moving company rates and read moving reviews.
Feel free to share your experience with reimbursement of employee moving and relocation expenses in the comments below. Did the move and changing jobs affected you well?