More Transferees Are Asking, “What Happened to My Tax Refund?”

Every year mobility departments field this question. This year, however, a larger number of transferees are reaching out to their employers as they compare their 2018 filings with previous ones.

They’re wondering why their tax refund wasn’t larger or, worse yet, why they owe money.

The assumed cause? Their relocation expenses were not grossed up sufficiently.

While this may be true in some cases, it is more likely that tax reform played a significant role. In fact, as the filing season came to an end, the IRS announced that the average refund was down by roughly 2%.

When tax reform was implemented, many people experienced:

  • Small increases in take-home pay
  • Smaller withholding amounts deducted from pay
  • W-4s that were not updated to reflect all tax changes

These factors affected the tax situations of many, not just relocating employees. Transferees should also consider the following, which may not be linked to relocation:

  • Capital gains on the sale of investments
  • Changes in spousal income (if filing jointly)
  • Changes in deductions
  • Under withholding on regular income

If none of the above information explains a transferee’s tax situation, the employer may conduct a gross-up audit to determine if additional money is owed to the employee.

Regardless, it’s important to educate all employees about tax reform and what factors determine the type of refund – or tax bill – a staff member receives. For all employees, the IRS recommends using its online tax withholding estimator for a “paycheck checkup.” This tool will help ensure the right amount of tax is withheld.

By providing employees with accurate information and tools, you can stave off questions and – most importantly – help staff members avoid tax-related surprises.

Source: Orion Mobility

Relocation America Sponsors 2019 Great Lakes Relocation Conference in Detroit, Michigan

Relocation America is proud to be the mobile app sponsor of this year’s Great Lakes Relocation Conference being held in Detroit, MI, September 26th & 27th, 2019!

The theme of this year’s conference is the Mainsail of Mobility with topics that include a mix of both international and domestic relocation (CRP®, GMS®, HRCI®, and SHRM® credits pending).

The Great Lakes Relocation Council is a non-profit professional organization that educates, facilitates and enhances community awareness of the relocation industry through an open forum of relocation professionals throughout the Great Lakes Region.

The GLRC is comprised of local relocation groups from Cincinnati, Cleveland, Columbus, Detroit and Pittsburgh. It is affiliated with the Worldwide Employee Relocation Council (ERC); the workforce mobility association for professionals who oversee, manage, or support U.S. domestic and international employee transfer. The combined group meets annually rotating among the five-member cities.

We look forward to a fantastic conference and hope to see everyone in Detroit.  For full conference and registration details click here:  GLRC Registration

About Relocation America International

Relocation America International is a full service relocation management company dedicated to providing innovative relocation services, value added support, and superior customer service to clients relocating families domestically and internationally. Visit http://www.rainternational.com for more information about our services or contact us at info@rainternational.com

Top Reasons IT Professionals Relocate

Thinking about putting down roots in a new city? If you’re a tech pro, then you’re not alone.

Tech on the Move, a new study from CompTIA, found that 78% of tech workers would consider leaving their current city for a new job, citing affordability (60%) and local economy (56%) as major factors driving the decision.

With more than 260,000 new IT jobs opening in the United States last year alone, it’s no secret that tech talent is in high demand. But have you thought about where an IT salary goes the furthest? Or what matters most to you when it comes to making decisions about where to live and work?

As housing costs continue to rise in pricey coastal hubs, the study found more tech pros are considering jobs in areas where cost of living is lower, the climate is desirable and traffic is less of a headache. 

Tech pros ranked three factors as most important when choosing where to live:

  • Cost of living (82%)
  • Weather and climate (64%)
  • Commute times (62%)

When it comes to choosing an IT job, they ranked job security (73%) and income/salary (69%) as most important.  

Does Making an Impact Matter to You?

The study also provides insight into what the youngest tech workers look for in a career – and the answer isn’t just higher salaries.

As Gen Z enters the workforce – and has a strong interest in IT jobs – they place more value on the societal impact of their work and less importance on high salaries than Millennial tech workers, according to the study.

  Millennials Gen Z
Having a Meaningful Career and Helping Others Is
Very Important
38% 48%
Income Is Very Important 74% 60%

While career aspirations differ, both Gen Z and Millennial IT pros say cost of living is the most important factor when choosing where to live and work. Gen Z workers also cited affordable housing and proximity to restaurants and bars as top three factors, while Millennials cited commute times and climate. 

Location, Location, Location… and Salary

As the tech industry seeks to expand the universe of those who see a career for themselves in IT – including encouraging more women to pursue careers in tech – the study revealed differences between men and women tech workers when it comes to importance of location and income.

  • Location: 55% of women tech pros rank it as very important compared to 43% of men
  • Salary: 74% of women tech pros rank it as very important, compared to 66% of men 

Will You Move for an IT Job?

Ultimately, the Tech on the Move study shows that as technology continues to spur job growth in new regions, the tech workforce is mobile and willing to relocate for the right job. And with tech thriving in areas far beyond traditional coastal hubs, IT pros have more opportunity and choice than ever for where to advance their careers.

What matters most to you when it comes to where you want to live and work?

Download CompTIA’s Tech on the Move study for a full analysis of what tech workers consider when choosing where to live and work. 

About Relocation America International

Relocation America International is a full service relocation management company dedicated to providing innovative relocation services, value added support, and superior customer service to clients relocating families domestically and internationally. Visit http://www.rainternational.com for more information about our services or contact us at info@rainternational.com