It can be difficult to calculate the exact cost of relocating an employee and their family. While the more obvious expenses like real estate fees and travel allowances can be budgeted for, it’s important to plan for the inevitable hidden costs.

There are many factors to consider, but having an outline of the costs makes it easier to design a relocation budget. We’ve created this helpful guide to suggest what your company can expect to outlay on employee relocation costs.

Relocation Cost Calculation 

While the average cost of relocating varies significantly from employee to employee, the following points will make it easier to predict what your company will need to pay for.

Main Employee Relocation Costs

Real estate expenses: If your employee is a homeowner, you may need to think about the real estate charges that come with selling their house and buying a new one. You may also incur fees for breaking a lease if your employee is renting.

House-hunting trips: Your employee will need to find a new place to live, so budget for a few trips ahead of their moving date. Your company will need to pay for travel and accommodation during these trips, so factor in an allowance to cover these expenses. If your budget allows, offer your employee some downtime during one of their house-hunting trips; sightseeing can get them excited about the move during this stressful time.

Moving costs: One of the major expenses to consider is hiring a moving company to pack and transport the contents of your employee’s home. This is typically determined by the type and number of items that need to be moved, but more importantly the distance.

Travel: Your employee’s whole family (including pets) will need to travel on the final moving day. Expect to pay for airfare and transport to and from the airport.

Temporary housing: As is often the case, your employee’s new house may not be ready by the time they arrive, so short-term accommodation at hotels or rental properties might be necessary.

 Relevant documentation: Work permits and visas will need to be organized if the employee is relocating overseas, or if you’re hiring somebody that doesn’t live in the US.

Additional Costs

Temporary storage: Temporary housing generally lacks storage space, so you may need to cover the costs of additional storage. Storage rental is a competitive market, so shop around before you settle.

Spouse support: Your employee’s partner may need assistance for a new business venture or funding for a job hunt.

Children and dependents: Your employee will be looking for new schools or nurseries for their children. Sometimes, this means providing financial aid or information on schools in the area.

Cultural support: Anybody that relocates knows how difficult it can be to integrate into a new community. Offer your employee language lessons, or enrol the family in an introductory course based on their adopted culture.

Insurance: Moving companies sometimes offer insurance on the items being relocated. While it’s generally a small expense, it’s wise to cover your employee’s personal belongings.

Miscellaneous costs: Driving license fees, pet registration, cleaning services and utility set-up costs are all things that contribute to the bill, and they can add up quickly.

A recent change in tax legislation means that you can no longer submit employee relocation costs as deductibles. It also means that your employee has to pay tax on their relocation benefits, so consider including this tax in the amount you provide them for moving.

There are many ways to manage employee relocation costs—tax included. Some companies prefer to give their employees a lump sum relocation package (more on that below), which is considered taxable income. Your employee will be liable for this tax, so many companies choose to ‘gross up’ their employee’s relocation package.

Here’s an example:

Tim’s Lump Sum—No Gross Up

• Tim’s new employer has offered a lump sum package for his relocation.
• His gross lump sum package is $5,000 and, if Tim falls within the 32% income tax bracket, the net amount for the relocation lump sum would be $3,400. This means $1,600 is lost in tax.

Tim’s Lump Sum—With a Gross Up

• Tim’s new employer has agreed that his lump sum package is $5,000 but to cover his tax burden they gross up his payment to $7,352.
• 32% of his payment is paid in tax, but Tim gets the full $5,000. This costs the company an extra $2,352, but Tim gets the full $5,000 and no unwanted tax bill.

Summary of Relocation Packages

Because every employee is different there is no ‘one-size-fits-all’ package for relocation, but as a standard let’s take a look at the most common packages we use for relocation calculations.

Lump Sum Packages are the usual way to cover employee relocation costs. The employee is given a fixed amount and is responsible for arranging the relocation. This is convenient for the employer, but it has a few downsides; the employee can spend the money as they see fit, and any money left over won’t be paid back to the company.

Tiered Packages are seen as more cost-effective measures. The employee relocation cost is determined by the employee’s position in the company and by their living arrangements. An executive with children will need a package on a higher tier than an intern with no dependents.

A Managed Budget Package is similar to a Lump Sum Package in that the money is given to the employee to handle. The difference is that the expenditure is broken up into sections like housing, travel and moving costs, and any leftover money is returned to the employer.

Often used to relocate high level employees, a Fully Covered Relocation Package allows the company to direct the spending and recover any money that isn’t used. Relocation specialists also use this package to help manage any large, unpredictable employee relocation costs, as the package allows for more flexible spending.

Of course, this is exactly the type of planning that our relocation company helps our clients with.

Planning Your Relocation Budget

Whatever package you decide to use, a relocation budget should always be in the back of your mind. Knowing the average cost of relocating an employee won’t matter if you haven’t planned how to spend the money effectively.

Track your expenditure: After you’ve decided on a budget, allocate amounts to every section and keep track of where the money is being spent.

Adjust your expenditure: Just like relocation packages, every company’s budget will be unique. Adjust your budget according to the size of your company or the size of the industry; smaller companies may need to be more flexible in the way they spend.

Understand your expenditure: When developing a relocation budget, one of the most important things you can do is monitor your spending and recognize how strongly you understand each aspect of the budget. Communicate openly with your employee, and find out what they need and what they don’t.

Reduce the Cost of Relocating

Even with a small budget, there are still ways to cut employee relocation costs without compromising the employee’s experience.

Clearly state what your relocation policy encompasses. Defining what the policy covers helps to keep unforeseen expenses to a minimum. For example, real estate losses when your employee sells their house could be huge if the expense is not limited.

Instead of paying for relocation software, use a management company like ARC Relocation to organize your employee’s transfer. Management companies help you plan the move, giving you more time to shop around for better service providers.

To learn more about the cost of relocation and how ARC Relocation can assist you, read our guide on employee relocation.

Bill Mulholland, SCRP, GMS
Founder & Owner
ARC Relocation

About Bill

In his role as Director of Business Development at ARC Bill oversees all aspects of the growth initiatives for both government and corporate clients, domestically and globally. Bill graduated from George Mason University with a BA in Psychology and has been in the relocation industry since 2000. Bill has earned both his SCRP and GMS designations from ERC. Bill is the former President for the Greater Washington Area Employee Relocation Council (GWERC), ERC content committee member, ERC Ambassador, the recipient of the ERC’s “Meritorious Service Award” and “Distinguished Service Award”.

Understanding relocation and relocation gross-ups can be confusing. After reading this, you should have a much better understanding of relocation, tax gross-ups for relocation, and the methods to use to determine the gross-up.

How Relocation Taxes Work

Tax rates depend on many elements, like your location, your salary, your filing status, and a few other aspects that will determine which tax bracket your employees fit into. Any outside investments or incomes are usually not considered in relocation taxes. To understand how to gross up relocation taxes, you must know how your employee’s relocation tax situation is impacted by relocation.

First Example – Bob’s Relocation Reimbursement

Bob has a salary of $90,000. His W-2 reflects $90,000 in earnings in a typical year. However, Bob moved this year and his employer reimbursed him $3,000 for his moving truck and $700 for his relocation flight. Consequently, Bob’s W-2 will now show $90,000 plus $3,000 plus $700, coming to a total of $93,700. Bob will still need to pay taxes on $3,700 and cannot write off that amount as a moving tax deduction from his taxes.

Second Example – Mary’s Relocation Package

Mary also earns a $90,000 salary, but her employer has a different type of relocation package. When Mary relocated, an $8,000 relocation signing bonus was given to her from her employer and her employer also paid $10,000 for a moving company. Now, Mary’s W-2 will state that $90,000 plus $8,000 plus $10,000 comes to a total of $108,000 in earnings. She will now need to pay taxes on the $18,000 for her relocation benefits without being able to deduct it.

Both of these examples show how relocation is an expense for any employee and it is understandable how they might feel reluctant to relocate. If an employer uses relocation benefits as a way to hire their employees, they should at least take the steps to help their employees. Relocation tax gross-ups are a way the employer can help the employee.

What is Relocation Gross Up? 

Simply put, a relocation gross-up is when an employer offers an employee the gross amount owed to them in taxes. With the help of the added gross income, your employees will feel relieved from the tax liability that comes with expenses from relocation. If your employee’s relocation costs $10,000 that can be taxed, the employer will pay the amount of $12,500 so the employee will get the complete benefit of the $10,000 since the approximate taxes in the amount of $2,500 are paid from the employer.

How Does a Tax Gross-Up Work?

Taxes from an employee’s paycheck are withheld by the employer because of government requirements. We live in a corporate world, where pretty much everything is taxed, as well as relocation packages for employees. Most relocation expenses that have to do with a move must be reported as taxable incomes to the employee and follow through with the IRS regulations for supplemental withholding.

When Do I Use a Relocation Gross Up?

Your employees will certainly be upset when they find out that the relocation bonus you provided is actually going to increase their taxes. Luckily, your employees can get a fragment of the tax liability from their relocation package covered by relocation tax assistance, or gross-up, by their employer. However, if the employee does gross-up, 55 percent or more can be added to their taxable costs of relocation. If you are looking to keep your employees happy, your money for a gross-up will be put to good use.

Methods for Relocation Tax Gross-Up

There are 3 methods of tax grossed up relocations that are commonly used today.

1. The Supplemental Method

The supplemental method is usually used because the employee’s relocation expenses and gross-up are considered income. Essentially, the employer will pay the gross-up on the gross-up. With the supplemental method, you will need to identify all your taxes, divide the taxable expense by the sum of the tax rates and take that number, and minus it from the taxable expenses.

Example of The Supplemental Method

Taxable Amount – $7,000

Federal – $546.89

Local – $0

State – $90.43

Medicare – $29.84

OASDI – $295.15

Total Taxes or Gross Up – $962.31

Total Wages – $7,962.31

This example shows gross-up on gross-up but might not accurately show the tax bracket of your employee. In order for this method to be completed, you will need to have more income information for their tax liability to make the transferee whole.

2. The Flat Method

The flat method is a flat percentage that is calculated on taxable costs and then added to the employee’s income. 

Example of The Flat Method

An employer will gross-up at a 30 percent rate for taxable costs. If the transferee is paid $2,000, the gross-up is 30 percent of this, or $600, and the transferee will receive a benefit totaling $2,600. It is important to remember that the gross-up is considered taxable income and could create an added liability for the transferee. This method most likely will not cover the tax liability of the employee because the gross-up is considered taxable income.

3. The Marginal Method

The marginal method is usually handled by a certified public accountant or by a full-service relocation or moving company and will incorporate the tax on tax calculation. This method takes into account the employee’s income and IRS form 1040 filing status. Typically, this policy states that only income earned from the company will be accounted for and other types of income, such as investment income or spousal income, will not be considered. The marginal method is probably the most used method out of the three.

FAQs

Let’s take a look at some frequently asked questions regarding relocation gross up.

What relocation expenses are taxable?

Relocation expenses paid by an employer to an employee are all considered taxable income by the IRS and state authorities. 

How do I calculate a relocation gross up?

To calculate a relocation gross up, take one minus the tax rate and divide the taxable expenses by that amount.

How does tax gross up?

A gross up is when the gross amount of a payment is increased to account for the taxes withheld from the payment. After taxes are withheld from the payment, the net amount should come out to the amount you guaranteed. The gross up reimburses the employee for the withheld taxes.

Final Thoughts

Now that you have a better understanding of tax relocation gross ups, you should feel a little bit more confident about your employees relocating for work. If you are planning an employee relocation, schedule a call with ARC Relocation today to discuss your business and corporate relocation needs.

If you are preparing to move, you may qualify for a moving tax deduction if you are an employee or are self-employed in a new location. If you are wondering “How can I write off moving expenses?”, you might be able to find some answers to your questions here. 

Due to the recent changes in law regarding relocation tax deductions, there is definitely some confusion about how to qualify for a deductible expense. Here’s what you need to know to properly claim moving expenses on your taxes:

1. What is a Moving Expense? 

Moving expenses are an adjustment to your income, but not an itemized deduction. Moving expenses reduce your gross income that is adjusted, therefore they can help you qualify for other tax benefits that have limitations at other levels of income. If this is your first time relocating, moving expenses can get confusing.

There are a few types of moving expenses that you can claim and are reasonable, such as the use of rental trucks, mileage or gas costs, insurance, packing, and temporary storage. If you are moving long distance, you can incorporate the price of staying at a hotel for one night while relocating to your new home. However, you will not be able to include any meal expenses.

The standard mileage rate, calculated by the IRS, is 17 cents every mile and can be used to calculate any travel expenses.  If you would rather, you can deduct your actual costs of transportation if you keep pace with your expenses. Travel costs for relocation that are eligible for you to use are the costs of gas, oil, tolls, or parking fees. 

2. Can You Deduct Moving Expenses in 2022?

For most taxpayers, moving expenses are not tax deductible in 2022. This means that you are no longer able to claim this moving tax deduction on your federal return. This change is effective for the tax years of 2018 to 2025. If you moved before 2018 and did not claim any moving expenses, you can most likely file an amended claim so you can deduct any moving expenses.

Since the Tax Cuts and Jobs Act (TCJA) was passed in 2017 by President Trump, many people are no longer able to deduct moving expenses on their federal taxes. TCJA makes it simple – If you moved after 2018 and are not an active member of the Military or Armed Forces, you cannot deduct moving expenses.

The TCJA suspended the moving tax deduction for unreimbursed employee expenses, including the costs of relocation that are not able to be reimbursed by your employer or a third party, like a government agency. The suspension of this act is temporary and can return in the near future, depending on when congress decides they want these provisions back.

It is important to know that you cannot deduct any tax expenses that are paid for or reimbursed at first hand by the government. You will need to fulfill two more benchmarks, the time tests and distance tests, in order to possibly count the expenses as a tax deduction.

3. Can You Deduct Moving Expenses as an Active Military Member or Armed Forces Member?

If you are an active duty military member, you are able to claim a relocation expenses tax deductible. You will need to include those expenses on form 3903 and attach them to form 1040. 

If you are a member of the Armed Forces and want to claim moving expenses as a deduction on your tax return, your move needs to be the result of a change of station that is permanent and an order from the Military. You are able to deduct your moving expenses that are not reimbursed for yourself, your spouse, and any dependants you might have.

4. What Form Do Active Military Members Use for Moving Expenses?

Any Military personnel are to use form 3903 to outline their relocation expenses, such as any shipping and storage costs, travel, hotel stays, and gas costs. Any employer reimbursements will be noted on line 4 and reimbursements for costs on both the 1st and 2nd lines that aren’t included in the 1st box of your W2 should go on the 4th line.

In case you have your W2 on hand to verify this, what you state on the 4th line should appear in the 12th box (code P). These specific directions are included on Form 3903 as well. If the amount you are being reimbursed surpasses your complete out of pocket expenses, you will not be able to deduct your relocation expenses.You will have to claim the additional reimbursement as a taxable income. If your personal expenses exceed the amount reimbursed to you from your employer, you can deduct your out of pocket moving expenses as taxable income.

5. Do you qualify for the time test?

In order to be eligible for the time test, you need to work as a full time employee in your new community for a minimum of 39 weeks throughout the first year after you move to your new area. You can have more than one job included in those 39 weeks.

If you are self-employed, it is necessary for you to work 78 total weeks throughout the first 24 months after you have arrived in your new area, while still working a minimum of 39 weeks during the first 12 months. If you are married, only you or your spouse need to meet the time test.

The only exception for having to meet the time test is if you begin a new job a few months before the rest of your family moves to your new area because of a special circumstance, like if your spouse is currently receiving medical care or your child is finishing up school for the year near your old home.If you have a special circumstance, you can deduct your moving expenses even though your move happens a while after your first day of work.

6. Do you qualify for the distance test?

To qualify for the distance test, the distance from your old home to your new place of work needs to be at least 50 miles further than what the distance from your old home to your old place of work was. If you are married, only you or your spouse need to meet the distance test. 

If you are an active member of the Military or Armed Forces, you are able to claim your moving expenses. No matter what your distance or requirements of your new job are, if you are making a permanent change in your military status, such as retirement or terminating your service, you can still claim moving expenses.

You may be able to qualify for an exception to these two rules if you get terminated from your job. If you are a member of the Armed Forces or active member of the Military, you don’t need to meet either of these tests if your move is a permanent station change or if you move one year after retirement or you are no longer on active duty.

Final Thoughts

If you are planning to move and are looking for the right moving company to help you get to your new location, get an ARC Relocation and let us make your move easier for you.

A cost of living adjustment (COLA) is an increase in pay or benefits that typically occur due to the rise in the price of goods and services. 

When you need to relocate your employees, it is essential to consider the cost of living and how it will impact you and your team. 

For example, If you are moving your employees from rural Pennsylvania to San Francisco, you can expect the cost of living to be more expensive than you are used to. Continue reading below to learn more about cost of living adjustments and how they pertain to business relocation. 

What Is a Cost of Living Adjustment? 

The COLA definition means the cost of living adjustment. This is an increase made to Supplemental Security Income (SSI) and Social Security to help prevent the effects of inflation. 

COLAs are usually equal to the percentage increase for a specific period in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  The average prices of a basket of goods are represented in the Consumer Price Index (CPI) and are used to measure inflation. 

For 2022, the COLA increase was 5.9 percent. This means that if someone received Social Security benefits in 2021 of $10,000, they would’ve received $10,590 for their annual benefit in 2022. COLA is commonly used when companies are in the process of relocating.

Understanding COLA 

COLA is used to protect against inflation in compensation-related contracts, government benefits, and real estate contracts because the cost of inflation was so high in the 1970s. The United States Bureau of Labor Statistics (BLS) determines the CPI-W, used by the Social Security Administration (SSA) to calculate COLAs. 

What Does COLA Mean and How Does It Work?

To determine the formula for the cost of living adjustment, or COLA adjustment, you need to apply the percentage increase in the CPI-W from the third quarter of one year to the third quarter of the next year. This information is regularly updated on the website for SSA.  

How to Calculate Cost of Living Adjustments 

There are a variety of ways to calculate the cost of living adjustments. 

1. Cost of Living Index

A Cost of Living Index can be used to determine how much you should pay an employee who is relocating. This index will compare the costs of living by region or by city. To compute the cost of living, you need to:

• Set the cost of living to 100 in your current city
• Determine the average price of similar items, like groceries, healthcare, and transportation in each city
• Determine the difference in percentage between the prices of each item
• Find the average of percent differences for all items
• If the cost of living in the new town is higher by 20 percent, the cost of living index equals 120

2. Consumer Price Index for Urban Wage Earners and Clerical Workers

The SSA uses this type of CPI to compute inflation costs and make the cost of living raise adjustments to Social Security and Supplemental Security Income. The BLS follows the same steps as they do to calculate CPI but with items that affect specific demographics to calculate CPI. Some examples of these demographics include:

• Households where there is at least one person who has been employed for at least 70 percent of the year
• Homes where at least half of the total income is from wage-paying or clerical jobs 

3. Consumer Price Index

To figure out how to adjust salaries because of inflation, many companies use the CPI. CPI is the most common tool used to measure inflation costs. The BLS calculates changes in CPI by:

• Listing over 80,000 items that represent purchases in the average household. These purchases include the costs of groceries, housing, healthcare, transportation, education, and recreation. 
• Conducting surveys across the country to determine the average costs of these items
• Weighing categories of items by order of importance to figure out the average CPI
• Calculating each category’s CPI by dividing the current year’s average cost by the base year’s average cost, then multiplying that total by 100

4. Consumer Price Index for All Urban Consumers 

The consumer price index for all urban consumers (CPI-U) measures the average change in costs consumers pay for services and goods over time. It is a more broad measurement of changes in cost than the CPI-W because it includes more demographics. These demographics include:

• Self-employed professionals
• Temporary workers
• Clerical workers
• Technical workers
• Retirees
• Wage-earners 

Why Does the Cost of Living Increase?

The cost of living increases due to inflation, which is the persistent increase in the average price level. Employee wages should go up. Many companies cannot afford to increase salaries, resulting in corporate downsizing.

Final Thoughts

With the cost of living rising, corporate downsizing and involuntary terminations are becoming more common. Companies need to understand how the cost of living adjustments can help counteract the effects of inflation. 

While some businesses need to lay off their employees to remain afloat, other companies need to downsize their companies altogether. 

If you are considering a company or office relocation, ARC Relocation can help. ARC can help take the stress out of corporate relocation for you and your employees. Book a complimentary call today so we can discuss your relocation.

Need a refresher on how Relocation Tax now works? This guide will help you to gain an understanding of how relocation taxes work for both the business and employee.

Here’s what we will be covering in this article:

• What Changed for Relocation Tax?
• The Difference Between Relocation Bonuses and Reimbursement
• Relocation Lump Sum Tax
• The Tax “Gross Up” Method
• Other Relocation Tax Examples
• Other Considerations

We strongly consider seeking the advice of our industry leading relocation company for any specialist tax information.

Relocation Cost Calculator

Use our Domestic Relocation Cost Calculator to get an estimate of an employee move.

What Changed for Relocation Tax?

Before the Tax Cuts and Jobs Act of 2017, relocation benefits were not considered taxable income for employees. Employers could also deduct relocation expenses incurred when relocating their employees. As a result of the new legislation, employees now have to pay tax on any benefits they receive and employers no longer classify relocation as a tax deductible. There are, however, savvier ways of working to ensure an employer is tax compliant and an employee isn’t stung, creating a smooth and efficient relocation process.

What’s the Difference Between a Relocation Package and Reimbursement?

The relocation package is the option provided by a business to an employee to begin the process. Some employers also offer a relocation signing bonus in addition to the package. Depending on the type of package (some options are Lump Sum, Budget Managed or  Tiered Packages), the money is usually paid to the employee once they have accepted the role and the relocation is in its early stage. In reimbursement, an employee covers the relocation themselves and is paid back by the business once the relocation is completed. Receipts are provided, and the business can still outline what the relocation includes.

Relocation Lump Sum Tax

A lump sum payment is when an employer provides the employee with cash or a check to cover the cost of their relocation upfront. It is the employee’s responsibility to pay tax on the money they receive as it is classed additional income on top of their salary.

For example, if a salary is $80,000 and a lump sum of $10,000 is provided, the earnings for that year are counted as $90,000 The employee would not only have to pay their income tax bill on their salary but, a percentage of tax would also have to be paid on the lump sum.

Some employers choose to provide tax assistance, aka “gross up” – more on that shortly – but, if they do not, the employee’s relocation costs could increase to take into account the tax bill they have coming their way.

Tax Brackets and Federal Tax Income depend on various factors:

• Salary
• Filing Status
• Location (city and/or state)

Did you know… that it’s not just cash payments, bonuses and incentives that are taxable? The cost of the flights, moving fees and any payouts made by a company for accommodation – temporary or permanent – are all taxable?

The Tax “Gross Up” Method

Grossing up is when an employer will increase the amount of the relocation package to help the employee cover the cost of their income tax bill.

It’s more commonly used for lump sum payments however, it can be applied to most forms of relocation packages as demonstrated in the examples below.

Jim’s Lump Sum – No Gross Up

• Jim’s new employer has offered a lump sum package for his relocation.
• His gross lump sum package is $5,000 and, if Jim falls within the 32% income tax bracket, the net amount for the relocation lump sum would be $3,400 – so $1,600 is lost in tax.

Jim’s Lump Sum – With a Gross Up

• Jim’s new employer has agreed that his lump sum package is $5,000 but to cover his tax burden they gross up his payment to $7,352.
• 32% of his payment is paid in tax, but Jim gets the full $5,000. This costs the company an extra $2,352, but Jim gets the full $5,000 and no unwanted tax bill.

For a lot of employers, relocating an employee – new or existing – is the best way for them to acquire and retain the best people for the job. Grossing up their payment is the number one way to keep the package look enticing and avoid a negative moving process.

Other Relocation Tax Examples

These examples for reimbursement and relocation packages don’t include a gross up and as you can see get pretty expensive for employees.

Bertha’s Reimbursement

• Bertha took on a new role that pays $75,000 and her tax bill would normally reflect this salary.
• Bertha stayed with her business but relocated to a different state.
• She paid for her and her partner’s flight’s which were $500, $150 for her poodle to be transported, $3,000 for a moving company and $1,350 for storage.
• Her employer reimbursed the $5,000 but her tax bill showed that she earned $80,000 ($75,000 + $5,000). Not only does Bertha need to pay more tax, she cannot deduct or exclude her expenses!

Carrie’s Standard Relocation Package

• Carrie’s employer has used a traditional, standard relocation package.
• As part of her package, her employer gave her a $10,000 relocation signing bonus and also paid a moving company $22,000 directly.
• As a result, Carrie’s tax bill will reflect her salary of $90,000 + $10,000 + $22,000, for a total of $122,000 earnings.
• She must pay taxes on that additional $32,000 in relocation benefits. And you guessed it no, she can’t deduct or exclude any of it.

Final Considerations

Whether it’s grossing up or reimbursing expenses, everything must be tracked thoroughly. Managing the payments back to the employee and even paying for the services directly can become a long, painstaking process. Allocating this work to a third-party provider with the resources to do this is an option to consider.

You also want to keep the process cost effective for you and the employee. Providing a managed budget and reviewing the different kinds of relocation packages available can mean the difference between a calm, cool process or a panicked new recruit with a rather large tax bill and moving fees.

Bill Mulholland, SCRP, GMS
Founder & Owner
ARC Relocation

About Bill

In his role as Director of Business Development at ARC Bill oversees all aspects of the growth initiatives for both government and corporate clients, domestically and globally. Bill graduated from George Mason University with a BA in Psychology and has been in the relocation industry since 2000. Bill has earned both his SCRP and GMS designations from ERC. Bill is the former President for the Greater Washington Area Employee Relocation Council (GWERC), ERC content committee member, ERC Ambassador, the recipient of the ERC’s “Meritorious Service Award” and “Distinguished Service Award”.