Hi,

Great news in that I finally have terms of an offer to transfer to the Toronto arm of my company. The final thing I need to decide to get contract finalised and printed is with regards to an option on relocation package or sign on payment.

My options are take direct none taxable payment of up to $15,000 paid directly to a shipping company and a $5,000 taxed cash sign on payment

or

Take a one off taxed cash sign on of $20,000

Any ideas given costs and all the other considerations what the best deal is likely to be?

Thanks

Julie

i'd say option 1 was best, but not an expert.

Taking the $20k is going to give you around $13k after tax, maybe more maybe less depending upon your earnings. $5k taxable is going to be around $3500 or so after tax.

Shipping costs based on the unscientific approach of quotes I've seen since being on BE are going to be around GBP4k for a full container. Lets call it GBP 5k for the high side - thats $9kish at todays exchange rate so you'd be ahead with taking the $20k I think. Of course actual shipping quotes and actual taxation might change the picture but thats my thoughts at least.

AX

It also depends slightly what time of year you arrive and where that fits in the tax year and whether or not you have weeks before you start work after you have arrived.


Gryphea