Relocation policies should consider pre- and post-move expenses. Brand X Pictures/Brand X Pictures/Getty Images Relocation assistance allows your company to attract qualified candidates beyond the local area. When writing the job offer, include the details of the relocation package so that the candidate understands exactly what you'll cover. This gives the candidate a full picture of the offer so that she is able to determine if it is acceptable. ComponentsRelocation includes numerous expenses for your new employee. The move itself, including the moving truck and transporting vehicles, is the most obvious expense. You may choose to pay for a premove trip so the new employee is able to look for housing, day care and other necessities. Other potential moving expenses include the cost of temporary housing after the move, storage fees for belongings until a permanent home is found, transportation for the family and assistance for the candidate's spouse to find employment. If the potential employee currently owns a home, you have the option of helping with the sale of the home.

For renters, consider paying for the fees incurred to break the lease in order to move for the job. The specific costs you cover depend on your budget and the employee's situation. LimitsOnce you determine what to cover, you need to set the limits. Calculate the amount of money available in the budget to cover the moving expenses. You have the option of giving the candidate a specific amount that he can apply to expenses as needed. Another option is to calculate costs for the specific expenses you plan to cover and designate a cap for each. If you're paying for temporary housing or similar expenses, designate the amount of time you'll cover the costs. TermsA relocation package costs your company a significant amount of money, so you want to protect your investment. Setting terms for the relocation assistance is one way to get the most out of your money. An option is to specify that the amount paid for moving expenses must be paid back if the employee leaves the company before a specific time period.

For example, require the new staff member to stay with the company at least a year to avoid paying back the costs. House And Lot For Sale In Concepcion TarlacWordingOnce you determine the details of the relocation offer, you need to put it into writing in the job-offer letter. Auto Headlight Bulbs ComparisonOpen the letter with the specific job title, starting date, supervisor, salary and other relevant information. Cost Integral Blinds WindowsIn a separate paragraph, state that you will offer the relocation package, along with the terms and limits, such as the following sample: "Our company will cover relocation costs up to $2,000, plus monthly housing costs of $800 for the first three months after your move. You are responsible for reimbursing us the amount paid in relocation and housing costs if you do not work for us at least one full year."

Ensure that the terms you include in the letter are accurate, as the employee could attempt legal action if you try to change the offer later. Consult with your attorney before sending the offer letter to ensure that your wording is appropriate and to understand the legal ramifications of the letter. References Microsoft Office: Job Offer with Relocation AssistanceHome Fair: Common Relocation Packages Photo Credits Brand X Pictures/Brand X Pictures/Getty Images Suggest an Article CorrectionSooner or later, you might take a job that will require you and your family to move. You will likely incur significant expenses in the process, and if you are like most people, you will want your employer to pay for at least some of them. The following advice should help you handle this negotiation as effectively as possible. The whole point of negotiating for something is to address your real needs. Before you limit what you ask for, make sure you know what you want. Think broadly and do not limit yourself to financial expenses.

For example, one client of mine decided these were her needs: Once you have thought about what help you need, you can prepare to negotiate for a package that suits you. Find Out What Assistance Is Typical Your preparation for this negotiation should include the following: Keep in mind that companies tend to vary in what they offer, and larger companies have more standardized policies. Therefore, compensation can differ by industry, city or even position in the company (executives tend to get more). Nonetheless, the following expenses are commonly covered: Develop Ideas That Benefit Both Sides No matter what is standard, many companies are willing to negotiate packages that address their new employees' distinct needs. Still, even though everything is negotiable, your employer is more likely to agree to your ideas if they benefit the company as well. So anticipate this reality, and provide the advantages for your new bosses when you share your ideas. For example, my client made sure to tell her new company, "I will be able to work longer hours and be more productive from the start if I can get a few important matters settled quickly."

Another client had an employer that, while willing to provide extra assistance for her relocation, did not want to set a precedent of deviating from its written policy. This person solved the problem by saying, "Well, what if we agree that this assistance will be called a signing bonus?" Once you and the company agree on a compensation package for your relocation expenses, make sure you capture that agreement in writing. A formal contract is not necessary, just a simple signed letter detailing the assistance that is being provided and by what time. A negotiation about relocation compensation is the same as any other negotiation. If you focus on effective preparation, collaborative negotiating and out-of-the-box thinking, you will do well. Articles in This Feature:Last modified on Friday 4 December 2015 [3927|38823]As authorized by Administrative Policy Statement 34.2, the administrative official with delegated authority may approve a lump sum relocation incentive payment when necessary to recruit a new employee or to retain a current employee who will have to make a domiciliary move in order to accept a University appointment.

Lump sum relocation incentive payments must be made from the organization’s existing resources. Authority to approve lump sum relocation incentive payments is as follows: Appointing authorities may establish procedures that their units must follow to obtain approval for relocation incentive payments. Relocation incentive payment in excess of 25% of the employee’s annual salary requires advance approval of the provost for faculty, academic appointees, and librarians, or the vice president for Human Resources for staff. UW employees who must relocate to another geographic location (either in the US or internationally) as part of their University employment are eligible to receive a lump sum relocation incentive payment under the following conditions: The full amount of the relocation incentive payment must be repaid to the University if within one year of the date of appointment the employee voluntarily terminates employment or engages in behavior that makes termination of employment necessary.

Termination of employment as a result of layoff, disability separation, or other good cause as determined by the provost or vice president for Human Resources (or their respective designees) does not require repayment of the relocation compensation. Relocation incentive payment is not a substitute for or an alternative to the payment of moving expenses incurred by new or transferred employees authorized by Administrative Policy Statement 34.1. As determined by the employing official and approved by the designated authority, a prospective employee may: Federal law requires that employees pay income tax on lump sum relocation incentive payments.  UW reports lump sum relocation incentive payments on the W-2 form. Employees may be eligible to deduct moving expenses on year-end tax returns. Employees may wish to seek advice from a tax professional. UW Payroll Office is prohibited from providing tax advice. The Payroll Office deducts the following from all lump sum relocation incentive payments:

“This offer includes a relocation incentive payment in the amount of $______. Acceptance of this offer confirms your understanding that the full amount of the relocation incentive payment must be repaid to the University, if within one year of the date of your appointment you voluntarily terminate University employment, or if you engage in behavior that makes termination of employment necessary. In addition, acceptance of this offer may have tax consequences for you, and necessary payroll deductions will be taken from the relocation incentive payment. If you have questions about the tax implications of the relocation incentive payment, you may wish to consult a tax professional for advice.” Does occasional travel with extended stays in another location, like teaching a quarter abroad, qualify for lump sum relocation incentive payment? Can a lump sum relocation incentive payment be used for an employee who is taking professional leave or on sabbatical? Is there a minimum distance for a domiciliary move that would make an employee eligible for a relocation incentive payment?

The law does not establish a minimum distance. However the University does not approve relocation incentive payments where changing residences is a matter of employee choice or preference, but is not required by the acceptance of an appointment. Can a lump sum relocation incentive payment be used instead of paying moving expenses? There can be no advance payment of a lump sum relocation incentive payment. The payment is only made after the individual is on the payroll. In addition, lump sum relocation incentive payments are treated as salary and are fully taxable. Can a lump sum relocation incentive payment be paid out over time, for example to reduce tax consequences to the employee? Can a person receive multiple lump sum relocation incentive payments for a situation like the following: The employee received a lump sum relocation incentive payment to relocate to another geographic location, but the employee must return periodically to the Seattle area for work stays of several weeks or months, after which the employee goes back to the site of the original relocation?