Are you in the midst of offering relocation packages to some of your top employees or new recruits? Are you wondering what benefits those relocation packages should include? It’s not an easy decision, especially in today’s economic climate, where companies are looking to cut costs and keep budgets in check while retaining top employees who bring value to the business.
In fact, devising fair and cost-effective relocation packages is a delicate balancing act. What are some items relocation packages may include?
Relocation packages should include:
- Packing and moving expenses (including transporting cars)
- Trips (airfare, hotel, meals, etc.) to visit the new region, find a home, scope out schools and activities, etc.
- Assistance in buying and selling a home, including covering realtor costs
Relocation packages may also include:
- Costs to turn on utilities
- Babysitting services during the move
- Temporary housing assistance (for employee and possibly their family)
- Loss-on-sale benefits
- Signing bonus for new employees
- Tax gross up for relocation benefits
Relocation Tax on Relocation Packages
Taxes on relocation packages can really hurt relocating employees, diminishing morale and putting them in a tight financial spot if they have to pay taxes on relocation packages. Offering tax gross up on all relocation benefits — and paying service providers directly whenever possible — can alleviate some of the financial burden associated with relocated and can help your employees return to productivity faster.
Remember, every employee relocation is different. Setting standards and best practices makes it easy to customize relocation packages to specific situations, within a framework of what your company has offered in the past. If you need help defining or refining your relocation packages, contact professionals like the team at CapRelo.