Furniture allowance: Not all relocation packages give you a lump sum to buy new furniture. Dear Cole, Relocation packages cover a wide spectrum. And when we manage your lump sum program, your assignees will have access to the preferred pricing we’ve negotiated with our relocation-related service providers and enjoy discounts from dozens of national retail merchants. All emails include an unsubscribe link. If your new job offers the choice of a relocation package, here’s everything you need to know about the costs of relocating, according to Redfin’s Chief Economist, Daryl Fairweather. We’ll pay the recipient as soon as we receive your authorization, or we’ll manage the timing for you if you’ve already prefunded the amount to us.Companies often choose to provide a relocation lump sum benefit that only covers specific services and activities. Great news for you and your company – you don’t need to worry about each employee’s specific needs! That's about the lowest acceptable relocation bonus.
Striking the right balance of flexibility and controlling costs can be an overwhelming and time consuming process, but one way of finding a solution is by implementing a lump sum policy for U.S. domestic relocations. For which benefits is the lump sum used?
When Offered, Job Relocation Packages Vary: Some will offer a lump sum, while others will ask you to track your receipts for reimbursement. Still others determine the lump sum amount based on the cost the company is willing to absorb. The choice to gross-up the expense for taxes is dependent on variables such as:In our experience, we see the lump sum grossed-up for taxes more often than not.Lump sum payments can be used toward the expenses of all relocation benefits or for certain benefits only, such as temporary living and home finding trips. Lump Sum Relocation Benefit While it’s exciting to be told that you will receive $10,000 to help you move, the reality is that a lump sum relocation payment is considered income. Graebel offers customized solutions to manage all types of lump sum payment programs, offering user-friendly features like debit cards and calculation/tracking tools.And when we manage your lump sum program, your assignees will have access to the preferred pricing we’ve negotiated with our relocation-related service providers and enjoy discounts from dozens of national retail merchants. before choosing an approach.Lump sum payments must be imputed as income, and the employee is required to pay taxes on the payment unless the company pays the taxes on the employee’s behalf. Sometimes, Amazon will pay your Year 1 sign-on bonus out with your first paycheck in a lump sum. Beware of bonuses offered by Amazon. Which components the lump sum is intended for; The amount of the lump sum; Company culture; In our experience, we see the lump sum grossed-up for taxes more often than not. Example suppose you receive 30K in signing bonuses and relocation expenses, and you decide to leave or are let go before your 24 months is up. Lump sums can be used for a variety of purposes, from covering the cost of one or two components of the policy to covering the full relocation. For example, one employee may need temporary living for 90 days but no home finding trips, while another employee prefers to go on two home finding trips but won’t need to utilize much temporary housing. Languages Yes, sign me up! Your Top 3 Employee Relocation Lump Sum Questions AnsweredYour Top 3 Employee Relocation Lump Sum Questions AnsweredFlexibility keeps popping up as a hot topic in relocation. Lump sum / self-service payments, a one-time payment by the employer to the employee to cover relocation costs, continue to grow in popularity–especially across younger generations. Each of these employees can use their lump sum payment as they see fit, and the policy doesn’t need to specify how the funds must be used. Therefore, it may be more cost effective for the company to provide services and direct reimbursement of these components than to include these benefits in the lump sum.It’s obvious that lump sum policies not only provide your relocation program with flexibility, but they are equally flexible themselves.