Summertime is a common season for job relocation moving experiences. If your employer has asked you to relocate, make sure you have a solid understanding of resources that your employer might offer for your trouble.
The Aitken Home Team presents four things you should know regarding your company’s relocation incentive package:
Don’t assume anything.
Relocation incentives are offered by nearly 70% of U.S. employers and you need to find out if your company offers relocation packages. Don’t wait for offers to be presented. Ask for the specific services and payment you will require to make such a move and be sure to research costs down to the penny. You want to make sure your incentives will cover all expenses and don’t be afraid to negotiate should your company’s compensation plan fall short.
Ask lots of questions and be specific.
While some employers cover only the most basic of moving expenses, others will provide cultural training, move your car, pay your closing fees and provide employment assistance for spouses. If you currently own a home, ask your company if they offer a guaranteed buy-out. If so, your company will offer to hire two appraisers before you list your house on the market. If your property does not sell within a specific time frame, your employer will purchase your residence at the price averaged between the two appraisals.
Related: “4 Tips for House Hunting Long Distance”
Consider the DIY approach.
Perhaps your employer does not offer relocation incentives. If this is the case, you may need to consider whether or not you’d like to DIY your move. Of course, moving all of your earthly possessions yourself is the least expensive route, however, it can be risky. Consider the prospect of hiring professional packers and movers to ensure your belongings arrive on time and intact. If you are moving a shorter distance away, perhaps family and friends would be happy to assist if you would prefer to keep the costs on the lower side. In addition, a self-move can take much longer to accomplish than a professional move.
Related: “5 Typical Moving Expenses”
Consider your tax responsibilities.
Find out if your moving expenses are tax-deductible and if you qualify for mileage reimbursement. If your employer is willing to make payments directly to a moving company, you are not responsible for reporting these payments on a W-2. However, should your employer pay you directly to compensate for moving expenditures, such payment is fully taxable and counts as official wages. Be sure to consult a professional regarding tax laws as they apply to employer relocation and save all receipts for your accountant or tax professional. Once again, be sure to ask questions, consult professionals and do your research.