When a company offers a transferee a fixed amount of money to help with moving expenses, it is known as a relocation package. The assignee is responsible for using the money to purchase a moving service, transportation and any other necessary expenses. It is important to read the fine print before accepting the package, as companies often include policies with protections in case of problematic situations. An employee relocation package is a benefit that companies use to help new and current employees move from one location to another due to work requirements.
The size of the company, experience of the employee and living situation can all affect the amount of the package. This type of relocation package specifically refers to employees moving to company locations in different countries. Employers are no longer able to use relocation as a tax deductible and employees must pay taxes on any relocation benefits received. To create the perfect package, it is important to consider what should be included and what a reasonable amount should look like.
Reimbursement relocation packages allow transferees to pay all moving expenses with the idea that their employer will reimburse them a specific amount of money after the relocation. If an outside buyer offers a higher price than the relocation company, a modified value option (AVO) can be used. The relocation company will match this offer and then sell the home to the outside buyer, provided that the highest bid is a bona fide offer made in good faith. Employees may have individual needs or requests that should be taken into consideration when creating the package.
To cover their bases, companies should consider adding a reimbursement clause, which states that if the relocated employee leaves before a set period of time, he will have to reimburse the company's relocation costs. A paid moving company and adequate insurance coverage can also be included in a relocation package. Other benefits such as temporary housing, relocation bonds and loss-on-sale protection may also be offered if you plan to sell your home. It is important to remember that if the amount offered is not satisfactory, you may be able to negotiate for more in your relocation package without asking for a higher salary.
