Category : Corporate Relocation
If your boss wants you to move to a new city, you are not alone. Every year, millions of people relocate for their careers. Relocation packages are recruiting tools used to incentivize quality labor to move to a new area for work. The benefits vary depending on the size of the company, but most relocation packages have a few things in common. For small companies, the average relocation package is slightly more than $10,000. At larger companies, the average relocation cost is more than $33,000. Standard packages typically cover moving expenses, house-hunting, temporary housing, cultural training, and miscellaneous expenses. Some employers are willing to give additional assistance for unique circumstances.
You can expect your employer to pay for two trips to your new location. The trips will cover your house-hunting expenses. Your employer will typically cover your airfare, meals, hotels and rental car. Most companies will reimburse child care expenses.
Moving and Storage Expenses
Moving expenses are included in most relocation packages. Your employers may cover your packing and shipping fees. Moving insurance is usually covered. Boat, horse, and playground equipment shipments are usually not eligible for reimbursement. Most relocation packages will pay for two months of storage fees while you are getting ready to move to your new home.
Temporary Living Expenses
If you cannot find a permanent home before your start date, you will need to live in hotels for a few weeks. Most standard relocation packages cover temporary living expenses for a minimum of one month after your arrival date. The company may reimburse you for your food, gas mileage, travel and hotel fees. The length of the reimbursement period will depend on the company’s relocation policy.
Miscellaneous Expense Allowance
The miscellaneous expense allowance will cover move related expenses that are not included in other relocation expense categories. The allowance will usually pay for carpeting, window treatments, and cleaning services.
Adapting to your surroundings in an unfamiliar location can be emotionally taxing. If the company is moving you to an international location, your cultural training expenses may be eligible for reimbursement. The company may cover your language classes and international communication classes.
Tax Deductible Moving Expenses
Your moving expenses can be tax deductible. You can take the deduction for any expenses that are above the amount of the relocation package. The distance between your former job and your primary job must be at least 50 miles greater than your original commute. Also, you must be a full-time worker in the general vicinity of your new location for a minimum of 39 weeks. The 39 weeks must be during the 12 months after your move date. If your employer moves you again, the IRS will waive the 39 weeks requirement.