What You Need To Know about Employer Relocation Packages

Relocating can be a big step, but it sends a strong message to your company. It tells them that you are ready to move to another city or a state for the sake of your career. That loyalty is the reason why many companies try to chip in by offering a relocation package.

Each year, millions of Americans relocate because of their jobs. You might also end up transferring for your company, and that’s why you need to understand relocation packages. Since the employer isn’t obligated to pay for your relocation, it is vital that you prepare yourself for negotiation on the terms.

This post will help you understand the ins and outs of a job relocation package. We’ll also talk about how you can negotiate a deal that is best for you. At the end of the day, you’re moving to another city, and things aren’t as cheap as you’d expect.

Important Things Included in an Employer Relocation Package

If your company wants you to move to another city, here are some essential things you need to know about employer relocation package.

Finding a Home

Finding a new place to live is the first thing that is included in a package. Negotiate a deal which provides for airline tickets and hotel costs for traveling to that new location to find a suitable home.

Home Selling and Buying

Real estate costs are the heaviest you’ll experience while relocating. Therefore, prime relocation packages include the costs involved in selling your home and buying a new one. These costs include closing costs, commissions, and other expenses associated with a real estate sale and purchase.

Employment Assistance

Some relocation packages include an employment assistance clause for your spouse or partner. Under this clause, the company either recommends or hires the partner.

Travel Expenses

The employer reimburses all initial travel expenses to the place of relocation.

Temporary Stay

Finding the right house might take time. To accommodate this fact, the employer might also offer to cover the expenses incurred in a short-term stay. This arrangement can either be a rental unit or a hotel.

Moving and Packing/Unpacking

These two costs also calculate into the total expenses. The employer pays for the moving truck as well as for the services that provide packing and unpacking assistance.

Once you know what your employer offers for a relocation package, you can ask for financial and logistic assistance from your employer to plan your move.

Tax Implications

If you relocate, your travel expenses and moving costs can be deducted if they meet IRS standards. These standards fall under the distance and time worked after relocation.

Similarly, all the payments that are directly made by the company on your behalf have no tax implications on you. On the other hand, if you do accept a direct payment from your employer to cover the moving expenses, you will pay tax on it. Therefore, it is crucial that you discuss this with your employer about bearing the associated tax implications on transactions.

Make sure you discuss the taxes with your legal advisor as wrapping your head around it can be complicated.

Final Thoughts: 3 Tips For Negotiating an Employer Relocation Package

Relocation packages don’t always cater all of the employee’s needs. For such situations, here are three tips that will help you to negotiate with your employer.

1. Don’t Shy Away From Asking Questions

Not every company offers relocation packages. Asking the employer about their existing package offers can put you in the front seat. Even if the company doesn’t provide any packages, your questions might get you a few reimbursements here and there.

2. Know the Costs

Relocation is more than packing your stuff and shifting into a new house. It has so many underlying expenses that you need to assess its financial bindings fully. If you are offered a relocation package, it is essential that you position yourself in a way that you know approximately what each step of the process will cost you. Categorizing and calculating expenses can help you negotiate in a better way.

3. Have Everything Written

Once you agree on a package, you must get it in writing from your employer. This final step will help you both to get on the same page.

When it comes to negotiating a relocation deal, don’t be bashful! After all, you are uprooting your life to tackle those new challenges for your company.