Proposed 2017 Tax Reform and the Substantial Effects it Could Have on Talent Mobility
On November 2, 2017, the U.S. House of Representatives Ways and Means Committee released new tax reform legislation entitled the “Tax Cuts and Jobs Act.” Although currently in review and not yet passed into law, there are portions of the proposed tax law that would bring about a significant shock to the global mobility industry. Because of the impact that this bill as it stands would have on our industry, it is imperative to understand what the current proposals entail and what the consequences would be as we move forward into 2018.
Elimination of the Household Goods Moving Expense and Final Move Non-Meal Expense Deduction
The household goods move for the employee is currently seen as excludable or non-taxable. Under the proposed bill, all of these costs will become taxable in 2018 and corporations will need to determine if they are willing to cover the cost of the taxes (or gross-up) on behalf of their transferring employees. As the household goods move is typically one of the most expensive relocation benefits offered (second only to the sale of the home), the financial ramifications for both the employer and the employee are considerable. For example, if a household goods shipment costs $20,000.00 and the estimated gross-up to cover the taxes on the shipment would be $13,000.00, the employer would face an additional $13,000.00 in relocation fees, and the employee would see $33,000.00 of additional taxable income in their W-2—just for the household goods shipment alone. Read More
By 
Too often, a company identifies an ideal candidate for a role that will require employee relocation and then communicates only with the candidate about the potential relocation. Ironically, the accompanying spouse/partner and family often endure the brunt of the move. 
With the hard work of defining your company’s needs and vetting prospective relocation management companies complete, the final step of the selection process is negotiating the contract with your chosen 
In developing specifications for a new, outsourced provider, it is best to begin with an evaluation of your current employee mobility process and policies, and a frank assessment of how well they meet the needs of your internal customers (recruiters, managers and 
In the not-so-distant past, a “trailing spouse” was typically the female partner of an expatriate male who ran the household and took care of the children’s needs while the family was on assignment. Today, the term “trailing spouse” is rarely used at all. As in non-expatriate society, family relationships are far more fluid and individual today. The accompanying partner or spouse might be responsible for the household and the children, might have a career or might have some combination of work and family responsibilities. 
What makes the “ideal expatriate”? Companies that deploy employees abroad are keenly interested in the answer to this question. According to Worldwide ERC, a traditional, long-term international assignment can cost a company $1m or more. In the worst-case scenario, if the 
In an increasingly volatile world, companies are trying to ensure their global mobility strategy remains competitive while increasing their return on investment from costly global assignments. Interestingly, more employees are interested in a global stint now than in the past, even those at relatively junior levels. In many organizations, realizing one’s career potential all but requires a global assignment.
The economy has recovered and job-hunters have more leverage than they’ve had in years. They are much more willing to relocate for the right opportunity if the employer is willing to offer