OldWindsor

Hi all.

Happy New Year to you all. My wife and I are planning a relocation via my employer from London to NYC later in 2019.
Looking for any great tips or advice please. Have had a good look through the forum and there is some great stuff here!!
Main topics I would like to know more about.

Taxation - best to go non Dom, what about my wife etc (plan is circa 3/5 years in US, maybe more)? Will be transferring my employment from existing UK business to our newly set up US one.

National Insurance payments in UK. Keep them up? If so then how?

We plan to travel on L1 visa (plus spouse). Any advice?

Things to get in new package agreement - relocation package costs (are they taxable?). Flights back home, car allowance?

Plan is to live around 40 mins commute via trains in nice friendly suburbs with house and garden etc. Budget around $4 to $5k rent per month. Any recommendations (we are looking around Montclair / Maplewood / South Orange at the moment).

Getting a car when we move? Expatride was one recommendation. Any tips? Unlikely to have a limp
fo money but will have money to rent / lease etc.

As you can see. Any advice or tips greatly received. (Ps sorry for the long ramble)

civilservant

L1? Is your wife planning to get her EAD and find work? Projected salary?

Hard to give any advice with the information given since we have no idea what your budgets really are.

OldWindsor

OldWindsor

civilservant

Yes you have, you need to understand that there are many ancillary items that drain your Gross check here in the US than there are in the UK. For example, our typical suggestion is to deduct 35% from your gross pay to determine what you might end up with net - that can drastically change the calculation.

You also need to ask about, and fully understand, what healthcare your company is providing and how much it will cost you. Not just the headline cost, but also in deductibles, copays etc. Do you have children? I will assume not as you don't mention them.

Apparently you do not want to share your projected salary, and that's fine, but understand it is hard to talk specifics when we don't know what you will be taking - especially considering you are moving to one of, if not the, most expensive place on the planet to live.

We have a saying here on BE - If you want good information, you need to give good information. We aren't mind readers

OldWindsor

civilservant

So assume $130k takehome more or less. More is better of course

You need to be careful what you mean by 'full cover' - they may well cover your family on medical for $0 premium (although I think that unlikely) but there will most likely be additional deductibles and copays due when you use the services. These might be as small as say $30 for a doctor visit, or they could be 20% co-insurance on hospitalization per day. This can add up quickly, and that's why it's important to understand exactly what you are getting.

I can't really advice about the area, but it's still early here on the East Coast. Some of our NY BE folks will be along later in the day and they can advice you better on areas.

OldWindsor

Thanks for the advice. On healthcare I presume its not a taxable perk as such?

Just check the terms and conditions of the provider as to what is covered then really?

civilservant

Benefits payments in general are not taxable when deducted from a paycheck. I don't believe they are ever taxed, no.

You will probably find that the provider is actually your employer - that's what usually happens with a big company. However yes, you need to get information on what their network is. You will probably have medical/dental/vision split across three different plans with 3 different benefits.

Nutmegger

Welcome to BE! Do a search for posts by Englishmum and Ecto17 -- both have posted helpful information about moving to the kind of New Jersey areas you are looking at. From the places you suggest, I presume you will be working downtown NYC?

OldWindsor

We have just taken an office in one of 'The Yard' locations in Flatiron South. Will have a search on the forums for the two you recommend. Thanks,

TheKingOfHearts

I was taxed on my relocation allowance - which may be incorrect (and if so, hopefully rectified on my return!) but just FYI

civilservant

I don't think it was wrong, but I don't have any direct experience. I also don't consider that a benefit per se. I'm referring to Health Insurance, 401(k) etc.

Pulaski

No, that was correct, having tax deducted. Same as in the UK, if you're given cash by your employer you get taxed on it.

​​​​​If your employer intends you to have, say, $20,000 to spend it needs to be "grossed up" by "the tax rate/(100% - the tax rate)".
​​​​

TheKingOfHearts

Thought so; the OP specifically asked about relo being taxed - so it's a fair assumption for him that it will be.