Moving Expenses/ Relocation laws & compensation compliance analysis

Moving Expenses/ Relocation: What you need to know

There are reasons for moving employees, in good times and in bad. Companies in the throes of retrenchment may want to close and consolidate several worksites, requiring workers that want to stay with the employer to move. An employer may be bought, or companies may merge, meaning relocation. An employer may hire new workers that must move to the work operation from states all over the nation. An employer may move operations to a foreign country and require managers to move to that country or may hire a valued worker that must move here from another country.
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However, with the cost of relocating a homeowner estimated to be between $50,000 and $65,000, and the cost of relocating a renter estimated at between $15,000 and $20,000, relocating an employee has major financial implications, even though a good portion of these costs are tax deductible. With the availability of constant communications, including for meetings, employers must decide whether the on-site presence of a worker is worth subsidizing the move and for how much. Also consider that some experts theorize that employees who are relocated are more likely to leave a company than nonrelocated employees.
Subsidies as incentives. Relocation subsidies or funding are an important incentive for employers who wish newly hired or present employees to move to a new area. Many employers assume part or all of the costs incurred by an employee transferred from one place of operation to another within the company; some employers also underwrite these costs for new hires. This practice, once limited to newly hired, executive- and professional-level employees, may be extended to any skilled or ...

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