Relocation package
Oct 18th 2019, 8:47 pm
#16
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Relocation package
It means that they give you more than the "x" they agree to pay you for relocation expenses to take account of that "x" being treated as taxable income. So, for example, if the state and federal tax take is 30%, they'll pay you approx. 30% more than "x" to take account of your tax liability. It's a little bit more complex than that if they do it right, as that additional amount is in itself taxable income ad infinitum, but that's the general idea.
Oct 18th 2019, 9:08 pm
#17
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Relocation package
It means that they give you more than the "x" they agree to pay you for relocation expenses to take account of that "x" being treated as taxable income. So, for example, if the state and federal tax take is 30%, they'll pay you approx. 30% more than "x" to take account of your tax liability. It's a little bit more complex than that if they do it right, as that additional amount is in itself taxable income ad infinitum, but that's the general idea.
because of the grossing up of expenses my company also mandated that their tax accounts did our tax returns to insure they were done correctly.
Oct 18th 2019, 9:11 pm
#18
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Relocation package
packages are not quite so generous these days unless you are VERY senior in the company!
This is what I am seeing for relocation:
pre-visit is nice but not offered so much anymore. Companies are offering 30 days of paid accommodation upon arrival and this gives you plenty of time to find a rental house/apartment and then register at schools if needed. If they offer the services of a "destination consultant" that will help enormously at getting you settled in quickly.
Accountancy services for the first tax return for each country is pretty normal.
car hire for 30 days.
flights+moving costs to the USA - not many people are getting return flights back each year unless senior execs.
all costs associated with visas - paid.
if the L1 is meant to be a stepping stone to the GC and they have stipulated that the move is intended to be one way then you must ask for the timeline for GC sponsorship. If you are on an L1a visa ( as opposed to L1b) then this should proceed very quickly, Don't leave it open-ended
It is pretty normal that you are required to pay back certain costs if you leave the company within 2 years of GC approval. Usually, the amount reduces each month to zero at 2 years. My OH's company does this but we've never heard of it being enforced. All kinds of tax issues would result for example.
Being given a set amount to cover moving costs is normal - around $10k mark - more/less depending on seniority and company generosity. This is supposed to include selling a house/selling cars at a loss/stopping subscription services early etc.
Now,having said all this. Most multi-national companies already have the moving packages worked out for each pay grade. A little bit of room for negotiation but not much. The best bit of advice to give you is try to negotiate that you go up to the next pay grade band. Even if the pay increase isn't enormous, it is easier to get pay rises within the band than it is to move to the next band - now is the time to try and get that. It might also mean you get a slightlty more generous relocation package.
This is what I am seeing for relocation:
pre-visit is nice but not offered so much anymore. Companies are offering 30 days of paid accommodation upon arrival and this gives you plenty of time to find a rental house/apartment and then register at schools if needed. If they offer the services of a "destination consultant" that will help enormously at getting you settled in quickly.
Accountancy services for the first tax return for each country is pretty normal.
car hire for 30 days.
flights+moving costs to the USA - not many people are getting return flights back each year unless senior execs.
all costs associated with visas - paid.
if the L1 is meant to be a stepping stone to the GC and they have stipulated that the move is intended to be one way then you must ask for the timeline for GC sponsorship. If you are on an L1a visa ( as opposed to L1b) then this should proceed very quickly, Don't leave it open-ended
It is pretty normal that you are required to pay back certain costs if you leave the company within 2 years of GC approval. Usually, the amount reduces each month to zero at 2 years. My OH's company does this but we've never heard of it being enforced. All kinds of tax issues would result for example.
Being given a set amount to cover moving costs is normal - around $10k mark - more/less depending on seniority and company generosity. This is supposed to include selling a house/selling cars at a loss/stopping subscription services early etc.
Now,having said all this. Most multi-national companies already have the moving packages worked out for each pay grade. A little bit of room for negotiation but not much. The best bit of advice to give you is try to negotiate that you go up to the next pay grade band. Even if the pay increase isn't enormous, it is easier to get pay rises within the band than it is to move to the next band - now is the time to try and get that. It might also mean you get a slightlty more generous relocation package.
Oct 18th 2019, 9:28 pm
#19
Just Joined
Thread Starter
Joined: Oct 2019
Posts: 6
Re: Relocation package
It means that they give you more than the "x" they agree to pay you for relocation expenses to take account of that "x" being treated as taxable income. So, for example, if the state and federal tax take is 30%, they'll pay you approx. 30% more than "x" to take account of your tax liability. It's a little bit more complex than that if they do it right, as that additional amount is in itself taxable income ad infinitum, but that's the general idea.
Oct 22nd 2019, 2:34 pm
#20
Forum Regular
Joined: Jan 2017
Location: Nottingham UK to Boston MA to Orlando FL
Posts: 185
Re: Relocation package
There will be many indirect costs of moving that you might not yet have considered and which probably wouldn't fall under a direct "moving costs" budget, especially if you have to treat this fund as an expense account to draw down from. Think things like buying out your remaining mobile phone contracts and TV contracts. For this reason, I pushed for a lump sum (grossed up) instead of a moving expense account. Ended up getting $25k to cover everything.
Oct 28th 2019, 5:22 pm
#21
MODERATOR
Joined: Nov 2006
Location: Hong Kong, mostly.
Posts: 5,214
Re: Relocation package
Settling in costs are common in some expat packages. This is a cash payment of say $2,000-5,000 for things like, well stuff you forgot. Placemats. Tin openers. Lawn mower, extension cords. All the little tidbits you couldn't bring or need to buy new on arriving to the USA.
Oct 31st 2019, 6:43 pm
#22
Forum Regular
Joined: Apr 2012
Location: NoVa
Posts: 39
Re: Relocation package
Hello,
First time post, but have been getting lots of good information from these forums. I came over in 2012 and, from what I have read here, was lucky enough to get sent over on an expat package, e.g. house, utilities, car, furnishing costs, four flights back to the U.K. each year etc. The one thing I wish I'd known was that whilst it's fantastic, you're actually put at a disadvantage in the long run.
Once I'd decided to buy my own car I found that as I hadn't been paying for the utilities / rent etc. my credit score, and hence my insurance score was horrible, so I ended up paying about $3,000 a year just for vehicle coverage. If you get any of those packages be sure to pay yourself and then expense it back to the company, will help build your credit via accounts held in good standing and paid in time.
First time post, but have been getting lots of good information from these forums. I came over in 2012 and, from what I have read here, was lucky enough to get sent over on an expat package, e.g. house, utilities, car, furnishing costs, four flights back to the U.K. each year etc. The one thing I wish I'd known was that whilst it's fantastic, you're actually put at a disadvantage in the long run.
Once I'd decided to buy my own car I found that as I hadn't been paying for the utilities / rent etc. my credit score, and hence my insurance score was horrible, so I ended up paying about $3,000 a year just for vehicle coverage. If you get any of those packages be sure to pay yourself and then expense it back to the company, will help build your credit via accounts held in good standing and paid in time.
Nov 1st 2019, 8:06 pm
#23
Austin. TX.
Joined: Sep 2013
Posts: 5,930
Re: Relocation package
Hello,
First time post, but have been getting lots of good information from these forums. I came over in 2012 and, from what I have read here, was lucky enough to get sent over on an expat package, e.g. house, utilities, car, furnishing costs, four flights back to the U.K. each year etc. The one thing I wish I'd known was that whilst it's fantastic, you're actually put at a disadvantage in the long run.
Once I'd decided to buy my own car I found that as I hadn't been paying for the utilities / rent etc. my credit score, and hence my insurance score was horrible, so I ended up paying about $3,000 a year just for vehicle coverage. If you get any of those packages be sure to pay yourself and then expense it back to the company, will help build your credit via accounts held in good standing and paid in time.
First time post, but have been getting lots of good information from these forums. I came over in 2012 and, from what I have read here, was lucky enough to get sent over on an expat package, e.g. house, utilities, car, furnishing costs, four flights back to the U.K. each year etc. The one thing I wish I'd known was that whilst it's fantastic, you're actually put at a disadvantage in the long run.
Once I'd decided to buy my own car I found that as I hadn't been paying for the utilities / rent etc. my credit score, and hence my insurance score was horrible, so I ended up paying about $3,000 a year just for vehicle coverage. If you get any of those packages be sure to pay yourself and then expense it back to the company, will help build your credit via accounts held in good standing and paid in time.
Financing or leasing a car, getting your own credit card, taking out a small loan to get a piece of furniture will help your credit but it's also going to take time to build up. And $3k for car insurance in your first year works out at $250 a month which isn't that bad for no/little US driving history and low credit score...I would also counsel people to get new quotes every 3 months - ie shop around.
Nov 2nd 2019, 3:39 pm
#24
Forum Regular
Joined: Apr 2012
Location: NoVa
Posts: 39
Re: Relocation package
Oh, okay, happy to stand corrected :-)
The realtor the company retained told me that the third party responsible for collecting the rent (eRent payment) reported to the credit agencies. This is somewhat anecdotal as I didn't look into it at the time as I had quite enough to take in.
The realtor the company retained told me that the third party responsible for collecting the rent (eRent payment) reported to the credit agencies. This is somewhat anecdotal as I didn't look into it at the time as I had quite enough to take in.
