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Category: Relocation Policy

How to Optimize Your Company’s Pre-Decision Planning Program for Success

| May 20, 2019

Man pressing on digital screen - pre-decision planning programGetting Started: The Initial Needs Assessment

The first phase of an effective pre-decision planning program is an initial needs assessment. The initial needs assessment typically consists of a brief, pre-initiation call or interview to gather key financial and lifestyle details on the employee and his or her family. These details should include information on:

  • The family’s current home and finances
  • The spouse or partner’s current employment situation
  • Expectations and requirements for the spouse or partner’s employment in the new location

Ideally, this interview is conducted by a third-party relocation consultant rather than a representative from the company. Employees might be reticent about sharing personal details with a coworker, and company representatives might not be sure which questions to ask to get a full picture of the transferee’s situation. Read More

Avoiding Unnecessary Employee Turnover & Recruitment Costs when Relocating Employees

| April 23, 2019

Part 1 of a 3 Part Series on Corporate Relocation Services and Group Move Management

Relocating employees after a company acquisition can be a challenging task, especially when asking employees to relocate to a perceived undesirable location. When a longstanding TRC client headquartered in Rapid City, South Dakota decided to acquire one of its competitors based in Denver, Colorado, they knew that employees could be reluctant to relocate. After evaluating its talent needs, the company decided to offer a domestic relocation package to 59 of its newly acquired employees and their families, based in either Colorado or Wyoming, to South Dakota.

Through employee interviews and discussions with acquired management staff, the client confirmed that the employees viewed the move with hesitation and reluctance. So as the offers were being made to key employee talent, it was important that as many accept the move as possible.  To nurture a high acceptance rate, the company needed to be prepared to provide all the necessary information and support that would allow the employees to feel confident in accepting the move. Read More

Globalization vs De-Globalization: A New World of Bridges…Or Walls?

| February 4, 2019

Global mobility challenges Until recently, the world seemed to be moving inexorably closer, with “us” and “them” giving way to a more global sensibility. Recent populist political movements, from Brexit to Trumpism to Italy’s Five Star Movement and France’s National Rally Party, have challenged this narrative, advocating for a return of local sovereignty and the primacy of national interests. The implications are significant for global mobility and companies that depend on a free flow of talent.

In a recent TRC Global Mobility/Worldwide ERC Learning Zone webinar, Dean Foster, Founder, DFA Intercultural Global Solutions and Executive Strategic Consultant, Dwellworks Intercultural, discussed how cultures and companies are adapting and responding to the new post-global world. He noted that culture is the DNA of a nation. Everything else—politics, economics, social and business life—is a consequence of this culture.

Dean discussed some on-the-ground daily mobility challenges in three areas: Read More

Impact of U.S. Elections on Mobility

| November 30, 2018

us election mobilityThe following post was originally published on November 29, 2018 by Worldwide ERC.

Dear colleagues:

The movement of government offers clues to the way business will unfold, as new lawmakers enter and others depart. With the recent elections in the United States, we want to provide you with an understanding of the impact such changes could have on mobility.

On November 6, midterm elections (which occur halfway between presidential elections for open Congressional seats) were held, resulting in Democrats taking control of the U.S. House of Representatives and Republicans expanding their majority in the United States Senate to 53-47. Democrats gained a net of 40 seats in the House. Read More

Repayment Agreements: Today’s Best Practices

| September 25, 2018

Shaking hands on a payment agreementRecent Worldwide ERC® data shows that the average cost for a company to relocate a current homeowner employee within the U.S. is $79,425. International assignments are more complex, and not surprisingly, more expensive, sometimes costing employers $1m or more.

It has always been important for companies to protect this substantial investment, but the continuing talent shortage has added another imperative: your best and brightest employees—the ones you are most likely to relocate or to send on assignment—are prime targets of your competitors. They would be happy to capitalize on your investment in your employees, particularly when it comes to international assignment experience. Read More

U.S. IRS Reiterates Position Limiting Deduction of Pre-Paid 2018 Property Taxes

| July 30, 2018

2018 Property TaxesThe following article was originally published by Pete Scott on https://www.worldwideerc.org.

In a letter to the Attorney General of New Jersey released 29 June 2018, the U.S. Internal Revenue Service (IRS) restated and supported the position it took in December of 2017 that prepayments of 2018 property taxes in 2017 are allowable as 2017 deductions only if the 2018 tax has been assessed.

The latest IRS letter makes clear that it is not backing away from its earlier position. The correct answer will eventually have to be decided by the courts. 

Following enactment of the Tax Cuts and Jobs Act of 2017 (TCJA), which imposed an aggregate deduction limit of $10,000 on state and local income, property, and sales taxes beginning in 2018, many taxpayers sought to prepay 2018 taxes in 2017 hoping to achieve a full deduction on their 2017 returns. The TCJA explicitly forbade such deductions for 2018 income taxes, but was silent as to property taxes. Read More

What is a Short Term Developmental Assignment?

| June 26, 2018

STDAShort Term Developmental Assignments (STDAs) are an increasingly popular tool for businesses to accomplish specific, finite projects and to develop employees while containing costs. Domestic STDAs really seemed to take off in the U.S. in the aftermath of the Great Recession. Concurrently, international short-term assignments, which have been on the radar longer, grew in popularity as companies looked for ways to reduce the cost of international relocation. Read More

How are Companies Now Treating Employee Moving Expenses for Tax Purposes?

| April 27, 2018

Employee Moving ExpensesThe passage of the Tax Cuts and Jobs Act in late 2017 and its almost immediate effective date of 1 January 2018 took many in the mobility industry by surprise. One key change, the repeal of the employee moving expenses deduction, left many companies wondering about the tax treatment of three common relocation benefits that historically have been tax deductible for transferees:

• Household Goods Shipment (including pet and automobile shipments)
• Household Goods Storage Expenses
• Final Move Expenses Read More

International Relocation Assignments and the Tax Cuts and Jobs Act of 2017

| March 22, 2018

International tax job cuts - scissors with hands and rescue floatThe passage of the Tax Cuts and Jobs Act of 2017 has had far-reaching effects within the domestic sector of the global mobility industry, however, international employee relocations have been impacted as well.  All of the benefits that are affected from a domestic perspective will have the same implications on international moves if those benefits are included in an international relocation package. For example, household goods shipments and final move benefits are typically included in both international and domestic employee mobility packages.  As of 1 January 2018, both of these benefits have been deemed as taxable, with no distinction between the benefits being administered domestically or internationally.  It will be up to companies on an individual basis to determine if they are going to consider grossing up the taxes for both of these benefits going forward. Read More

Relocation Benefits Tax Changes: Key Issues to be Aware of When Completing 2017 Federal Taxes

| March 1, 2018

Relocation Benefits Tax ChangesWith the passage of the Tax Cuts and Jobs Act of 2017, there are key changes to the tax treatment of several common relocation benefits. Whether you are an employee moving domestically or globally or an employer who relocates employees, it is important to be aware of these changes as we head into tax season.

We outline these changes below and offer TRC’s recommendations on how to treat these benefits going forward. Read More

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