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Economic Recovery Propelling Rising Prices and Higher Average Relocation Costs

Jerry Funaro | May 14, 2021

Shaking off the pandemic-driven slowdown, the country’s GDP grew 1.6 percent in the first quarter. The Fed is expecting 6.5 percent growth for the year—the fastest increase since 1984.

Meanwhile, the consumer price index rose 0.8 percent in April after increasing 0.6 percent in March, according to the U.S. Bureau of Labor Statistics. Overall, the index is up 4.2 percent year over year, the most significant 12-month increase since 2008. More robust demand for goods and services—everything from gasoline to food to building supplies, appliances and vehicles—boosts prices across the board.

According to Berkshire Hathaway Chairman and CEO Warren Buffett, “We are seeing very substantial inflation. It’s very interesting. We are raising prices. People are raising prices to us, and it’s being accepted. We’ve got nine homebuilders in addition to our manufactured housing operation, which is the largest in the country. So we really do a lot of housing. The costs are just up, up, up. Steel costs, you know, just every day they’re going up.” Berkshire owns Clayton Homes, one of the nation’s largest homebuilders, and other housing-related companies, such as Benjamin Moore paints and Shaw flooring. Read More

C-Suite Executives Weigh Company Relocation, Remote Work, and Vaccinations

TRC Global Mobility | January 28, 2021

This article was originally published by Worldwide ERC on January 21, 2020. Click here to review the original article.

Survey research shows that C-suite executives are considering moving their companies to cheaper locales, while also weighing their options for remote work, vaccinations, and more.

In a survey of 150 C-Suite executives, consulting firm West Monroe found that more than a quarter of respondents are considering moving their operations to another cheaper location. This is one of the major implications of the overall shift to remote work, a key strategy to keep employees safe as the COVID-19 pandemic continues. However, for some companies, this shift away from the office has proven difficult. Respondents’ reasoning for considering a big move included high costs of talent and living in their respective locations, as well as taxes, real estate, and regulations. Read More

Worldwide ERC Supports Workforce Mobility Relief to Bolster Economic Recovery

Jerry Funaro | July 16, 2020

The U.S. economy has lost 15 million jobs since February 2020 and the unemployment rate, while improving, stood at 11.1% for June 2020—a historically high level. Before the pandemic and the onset of the current recession, the unemployment rate was around 3.5%—a 50-year low.

Public and tax policy can facilitate workforce mobility, helping job hunters to become re-employed and employers to engage the talent needed for growth. Unfortunately, more recent legislation, such as the 2017 Tax Cuts & Jobs Act, has actually made mobility more costly and less attractive, by eliminating popular tax provisions widely utilized by companies and relocating employees. Read More

Mobile Employees May Be Affected by Relief Checks Calculation

TRC Global Mobility | April 6, 2020

This article was originally published by Worldwide ERC on March 27, 2020. Click here to review the original article. If you have questions about how employee relocation benefits can impact relief checks, please contact us.

The proposed coronavirus relief package defines the amounts to be given to taxpayers based on their adjusted gross income. This can be complicated for transferees who received moving expense payments.

A massive coronavirus economic relief package that is expected to be passed by Congress and signed into law by the end of the week includes one-time relief payments to every American with a Social Security number. However, limitations on who can qualify may, in some cases, affect recently relocated employees.

The relief payments are $1,200 per adult ($2,400 for married couples), plus $500 for every child under the age of 17. However, full payments are limited to individuals with adjusted gross income less than $75,000 and married couples with adjusted gross income less than $150,000. The payments then phase out to zero over income levels up to $99,000 and $198,000.
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Worldwide ERC® Requests Financial Assistance for Mobility Industry

Jerry Funaro | March 23, 2020

This article was originally published by Worldwide ERC on March 20, 2020. Click here to review the original article.

Worldwide ERC® has sent letters to congressional leaders requesting the inclusion in the latest economic stimulus package of four provisions to help Worldwide ERC® members address the impact of the coronavirus (COVID-19).

Earlier today, Worldwide ERC® sent letters to U.S. congressional leaders requesting financial assistance for our members to help mitigate losses due to global travel restrictions that are necessary to contain the coronavirus. The U.S. Congress is currently developing a third legislative package to stimulate the U.S. economy and provide financial relief to employees and employers.

In the letter, Worldwide ERC® makes four specific requests of lawmakers as our members face an enormous reduction in the number of relocations.
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U.S. Suspends Travel from 26 European Countries

Jerry Funaro | March 16, 2020

This article was originally published by Worldwide ERC on March 13, 2020. Click here to review the original article.

U.S. President Trump has announced a 30-day suspension of travel by foreign nationals residing or visiting Schengen Zone countries to the U.S. due to concerns over coronavirus (COVID-19).

In a televised speech on 11 March, U.S. President Donald Trump announced the suspension for 30 days of travel to the U.S. by foreign nationals who have been in a country part of the Schengen Zone of Europe in the last 14 days. The entry suspension takes effect today, Friday, 13 March at 11:59 pm (eastern).

U.S. citizens and permanent residents currently in a Schengen Zone country with plans to arrive in the U.S. after the suspension takes effect will be subject to medical screenings. The suspension does not apply to foreign nationals whose plane takes off prior to the effective date and time but lands in the U.S. on 14 March. Several other categories of individuals including certain family members of U.S. residents, diplomats and flight crews are not subject to the restriction.
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Coronavirus: Countries’ Containment Efforts Affect Employers

Jerry Funaro | February 28, 2020

This article was originally published by Worldwide ERC on February 18, 2020. Click here to review the original article.

Governments around the world seeking to protect their talent from coronavirus have issued guidance and in some cases restrictions on employees traveling to and from China. The approach taken by the U.S. is similar to that taken by most countries, while Singapore’s approach is most restrictive.

In an effort to limit the spread of the coronavirus within their borders, several countries have provided guidance to, and in some instances, placed requirements on domestic employers related to employees traveling to China. In most countries, governments are recommending to businesses that they refrain from sending employees to China. The Singapore government has placed specific requirements and restrictions on businesses for employees entering the country from China. Read More

China Travel Advisory

TRC Global Mobility | February 3, 2020

China travel advisory for USA Because of the growing global threat posed by the coronavirus, the U.S. State Department has issued a Level 4 China Travel Advisory (Do Not Travel). For Americans currently in China, the U.S. Centers for Disease Control and Prevention (CDC) offers the following guidance.

China – Level 4: Do Not Travel

Do not travel to China due to the novel coronavirus first identified in Wuhan, China. On January 30, the World Health Organization (WHO) determined the rapidly spreading outbreak constitutes a Public Health Emergency of International Concern (PHEIC). Travelers should be prepared for the possibility of travel restrictions with little or no advance notice. Most commercial air carriers have reduced or suspended routes to and from China. Read More

Civil Unrest in Hong Kong and Global Mobility Duty of Care Employer Obligations

Jerry Funaro | November 30, 2019

For many years, Hong Kong has been ranked as one of the safest cities in the world. However, the recent protests in Hong Kong and unrest have raised some security concerns for corporations with employees and families deployed there as part of its international relocation program. On November 14, the U.S. State Department raised its travel advisory for Hong Kong from Level 1: Exercise Normal Precautions to Level 2: Exercise Increased Caution. The U.S. State Department website advises the following: Read More

How Canada Raises the Bar for Attracting Foreign Skilled Talent

TRC Global Mobility | October 24, 2019

The following article was written and originally published on October 11, 2019 by Worldwide ERC. View the original article.

According to an article from Bloomberg, Canada took in 425,000 people in 2018, boosting population growth to a three-decade high of 1.4%. Canada boasts a strong economy and a progressive immigration system, and as a result, the Canadian government predicts that by 2031, over half of all working-age people in the country will have been born overseas. The article notes that this growth is a result of Canada’s desire for skilled talent. Large companies such as Amazon have benefited from the influx of talented foreigners and has created 10,000 jobs in Canada. Read More