Hot Topics, Household Goods Management

Breaking News: Atlas Vanlines Releases 2018 Corporate Relocation Survey Results

Relocation America International, as a partner of Atlas Vanlines, is pleased to announce the results of the relocation industry’s first and longest-running survey into corporate relocation policy and practice.

For this year’s edition a total of 435 individuals responsible for relocation as part of their professional duties took part in the survey.  Among the topics discussed in the survey were  relocation initiation volume, budgets and recent tax reform legislation and its effect on relocation policies.  Below are some keys findings from the survey along with information on how you can obtain a complete copy of the survey results.

2018 Corporate Relocation Key Findings:

  • The majority of organizations (74%), regardless of size, have plans to implement policy changes in response to recent passage of the U.S. Tax Cuts and Jobs Act. Among organizations planning policy changes in 2018, the most popular planned change across organizations  was to gross-up taxable relocation benefits.

 

  • The top factor affecting relocation last year was a lack of local talent.

  • Family concerns held the top spot among reasons why relocations were declined by employees, with spouse/partner employment in second place over the same period.

  • Even though most organizations reported improved financial performance, cost containment remains near historical highs. Even as firms expect increases in relocation costs, controlling the impact remains a priority.

  • More than two-thirds of companies outsourced relocation services last year.

  • Over the last few years, many organizations have used candidate assessments to support successful relocations. This year, nearly two-thirds of organizations assess candidates prior to relocation, down slightly from around three-fourths over the past three years, but maintaining a marked increase over the roughly half of firms that performed vetting from 2012 to 2014.

  • As lump-sum usage has grown, the survey incorporated additional questions about monetary ranges for the categories of reimbursement. Compared to the past five years, most offerings are more frequent and generous than in 2013 and on par with 2014, despite some dips below ranges reached in 2015. The overall median ranges are the highest in five years for: household goods shipping/storage, entire relocation cost, temporary housing, and miscellaneous expense allowance. However, offerings for real estate assistance/transactions, rental assistance/transactions and travel expenses fall one range lower.

The Atlas Vanlines Corporate Relocation Survey is a treasure trove of useful relocation information presented in a clean and easy to read format.  For a complete copy of the survey results please contact Relocation America International by completing the online form below:


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.

Hot Topics, Relocation, Taxation

Tax Reform Eliminates Moving Expense Deduction-The Impact on Corporate Relocation

The finals days of 2017 saw the House/Senate pass the most sweeping change to US tax code in decades;  the Tax Cuts and Jobs Act.   The act, now signed into law, includes changes that will impact relocation and talent mobility programs.

Perhaps the biggest change to the tax code is the elimination of the exclusion/deduction for moving expenses such as the shipment of household goods, storage, and final move costs.   For corporations that gross up for taxable reimbursements, this will result in thousands more in tax gross-up dollars per transferring employee. Written policy language will also require revision along with necessary adjustments to relocation budgets to allow for the increased cost of tax gross up.  The average company cost for moving/storing household goods of transferring employees and final move is over $14,500.  It is important to remember that corporations can still deduct moving expenses it pays to or on behalf of employees.

Prior to passage of the Tax Reform Bill certain moving expenses were considered excludable/deductible if certain criteria were met. The criteria included meeting the time and distance tests.  The transferring employee needed to commence work in the new job (at the new work location) and work full-time for at least 39 weeks within the first 12 months after the move.  He/she also needed to demonstrate that the new place of employment was at least 50 miles away from the old home than the old place of employment.   The new tax reform law effectively negates the need for the above criteria since moving expenses are no longer deductible/excludable.

 Additional Relocation-Related Tax Reform Implications

  • The mortgage interest deduction was reduced to $750,000 from $1,000,000 for mortgages originating on or after December 15, 2017. This is likely to affect transferring employees looking to purchase homes in higher cost of housing areas.  Recruiting talent to relocate to these areas could become problematic.
  • The state and local tax deduction is now capped at $10,000 in 2018 through 2025. This again could impact employees transferring into higher tax states as the cap will decrease the ability to deduct these items.
  • Tax Rates and Income Brackets:  The law’s seven federal tax brackets will now have the following rates:

Relocation America International is actively working with our clients and prospects to insure their programs are fully compliant with the new tax law and relocation policies are updated to reflect the new tax reality.

The above information is for general information only and is not presented as tax advice. Please consult with your tax advisor prior to making decisions and taking any action.  For more information contact us at info@RAInternational.com or visit www.RAInternational.com

Hot Topics

Shelly Bishop Appointed to the Worldwide ERC Ambassador Committee!

We are pleased to announce that Shelly Bishop, Director of Global Business Development for Relocation  America International, has been selected by the Worldwide Employee Relocation Council to be part of the Ambassador Committee for the Americas Mobility Conference being held May 17-19 in Atlanta, Georgia, USA.

The purpose and scope of the Ambassador Committee is to positively represent Worldwide ERC® – its vision, mission and initiatives – at industry events and to others who could benefit from our industry information. The Committee provides support to the value proposition of membership with Worldwide ERC® and encourages participation from existing and future members.

In addition, Shelly is also a featured speaker at the conference.  We look forward to networking with industry colleagues and gaining new insights into employee global mobility.  For a complete list of speakers please click on the link below:

http://www.worldwideerc.org/amc17/events/Pages/AMC17-Speakers.aspx

See everyone next month!

About Relocation America International

Relocation America International is a full service relocation management company headquartered in Southfield, Michigan dedicated to providing innovative relocation services, value added support, and superior service to clients relocating families domestically and internationally.

Visit http://www.rainternational.com for more information about our services or contact us at mobility@rainternational.com.