One of the big issues that employees experience when they relocate through work are the benefits granted to them due to the move. These entitlements are mostly dependent on the employee’s level (e.g. manager vs. executive) and the type of move: personally-initiated or company-initiated. With the former, most of the costs will be handled by the person; but if the move is a business decision, then he or she should expect to receive support.
If the company asks you to relocate, these are some of the things that you need to consider:
Allowances
This is especially true if the move is an assignment and not a personal transfer. Check if you will get a daily per diem or a monthly allowance. This is on top of your salary, and should help you buy food and other goods in the host location. For example, if a person is moving from Mumbai to New York, he or she will get his or her normal salary from India, plus allowances in the United States.
Shipment
If you’re only moving to another city or state within the US, depending on the company’s budget, they can arrange for a shipper to assist you, or you may be required to move your own things. You can rent a U Haul so you can manage the transfer on your own, or you can get a quote from smaller moving companies and see if you’d like to use their services. Always check who will cover the insurance of your items, and check what items you cannot ship, like pets, expensive artworks, or grand pianos.
Housing
Depending on the length of the assignment, you will need to rent a serviced apartment or a long-term apartment. If you are transferring permanently, you have the option to buy a house if your budget allows. The person from your firm who’s handling your move will have the contact information of the broker and housing vendor. Check if the company will pay the landlord directly or if you can reimburse the rent and utilities.
Tax
This is very important especially when moving to other states or countries. Before your assignment gets finalized, check with a tax consultant if you will be worse off if you move locations in terms of tax and social security payments. Some people have to pay thousands of dollars to solve these issues. Also maintain a record of your relocation expenses, such as airfare and allowances, for when you need to file a tax return.
