Month: August 2020

Categories
Buy a Home Home Purchase

Renting Versus Buying: 2020’s Record Low Interest Rates Help Make the Case

Excited expectant couple hold the keys to their new home. They are standing in front of the house on a sunny day.

Many of Global Mobility Solutions’ clients have transferees relocating to a new destination who must decide on renting versus buying. There may be several reasons why a transferee would choose one option over the other. GMS recommends companies encourage transferees to buy instead of renting. When transferees choose to buy, there are several benefits for both the client and the transferee.

GMS spoke with Anthony Hughes, Relocation Account Manager at Quicken Loans. Anthony agreed to share his advice and guidance on this topic, along with some examples.

What is New in the Renting Versus Buying Concept for 2020?

According to Anthony, this concept has been a hot topic for the past few years. However, it is even hotter in 2020 with interest rate averages being in the upper-2’s to low-3’s depending on the client profile. With both options, the choice depends on what the client is most comfortable doing.

However, in several markets across the country, clients who buy are able to save money and “invest in themselves” for less than they are paying in rent. As Anthony states, “Wouldn’t it be great if everyone could ‘live the American dream’ of owning their own home?”

Pros and Cons of Renting Versus Buying

Anthony believes transferees should look at both the pros and the cons of renting versus buying before they make any decision.

The Renting Side of the Question

Renting Pros:

  • Mobility/freedom to move around
  • Landlord pays for maintenance
  • Does not require expensive closing costs
  • No fluctuation in monthly housing expenses
  • Allows you to test-drive different living spaces

Renting Cons:

  • You don’t build any equity if you choose renting versus buying
  • Limited ability to customize your living space
  • Rent could go up over time
  • Landlord might sell or decide to stop renting
  • Limited sense of home stability/permanence

The Buying Side of the Question

Buying Pros:

Buying Cons:

  • Closing costs can be prohibitive
  • Responsibility for maintenance and repairs that require time and effort
  • Less flexibility to move (at greater difficulty/expense)
  • Home value may decrease
  • Recent tax laws could hamper tax benefits

Renting Versus Buying: Real World Examples

On the concept of renting versus buying, the proof is in the numbers. Looking at some of the hottest markets/states that GMS serves, below are three examples that do not include taxes or homeowner’s insurance. In all scenarios, there are huge opportunities for savings.  Anthony shared these three real world examples to help illustrate the concept:

Texas Renting Versus Buying

Average 3-bedroom rental: $1,550

Average Purchase Price: $211,199

  • 20% Down Payment
  • Avg. 3.25% interest rate
  • 30 year fixed conventional mortgage

*Total Monthly Payment: $919.15

*Does not include HOI or Taxes as these are based on property specific

Arizona Renting Versus Buying

Average 3-bedroom rental: $1,600

Average Purchase Price: $277,574

  • 20% Down Payment
  • Avg. 3.25% interest rate
  • 30 year fixed conventional mortgage

*Total Monthly Payment: $1,208.02

*Does not include HOI or Taxes as these are based on property specific

North Carolina Renting Versus Buying

Average 3-bedroom rental: $1,360

Average Purchase Price: $174,380

  • 20% Down Payment
  • Avg. 3.25% interest rate
  • 30 year fixed conventional mortgage

*Total Monthly Payment: $758.91

*Does not include HOI or Taxes as these are based on property specific

What Does This Mean for Renting Versus Buying Decisions?

2020’s record low interest rates help transferees understand renting versus buying decisions with more clarity on the financial side of things. Transferees should consider the pros and cons of renting versus buying and weigh the importance of each factor in their decision-making process. Anthony notes that Quicken Loans offers complimentary mortgage reviews. If a GMS client’s transferee was ever unsure or just wanted to see what it looked like, the team at Quicken Loans would be glad to have a conversation.

What Should Employers do to Assist Transferees with Renting Versus Buying Decisions?

Employers with transferees looking to buy a home should direct them to speak with qualified lenders and financial advisors for guidance. Employers should also review their relocation policies to determine if enhancements can be made to further promote homeownership.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to communicate the important points of renting versus buying to their transferees. Our team can help your company understand how to proceed by providing guidance to transferees on obtaining information from qualified lenders and financial advisors.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Contact our experts online to discuss how to assist your company’s transferees with understanding the concept of renting versus buying, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

Request your complimentary relocation policy review

Categories
Domestic Relocation Domestic Relocation Tips Household Goods Relocation Challenges

Pet Relocation from the Pet’s Perspective

A happy yellow lab dog sitting on a sidewalk.

Pet relocation needs are often considered after an employee has accepted a position. If your company has new hires and transferees who are planning to relocate along with their pets, there are many points to consider. For example, housing at the new destination, household goods move logistics, and transportation options should be top of mind. Has the employee thought about their pets? Could pet relocation be as simple as opening their car door? Why not let their pet jump in the back seat as they ponder a long drive?

From a pet’s perspective, relocation may be fraught with confusion. Certainly costs may be involved, and there may be specific veterinary requirements such as current vaccinations. Before employees start making decisions, it is important to know the specific requirements their pet must meet, and what they may experience during a pet relocation.

Health and Vaccinations for a Pet Relocation

Many states require that pets have proof of current rabies vaccination from a licensed veterinarian. For example, the state of Florida maintains this requirement for dogs and cats 3 months of age and older. However, other states may require an official certificate of health. Requirements across states vary, and should be investigated prior to the pet relocation.

The United States Animal Health Association (USAHA) publishes a list of each states animal health officials. Additionally, USAHA publishes a list of sovereign territorial animal health agency members for the Navajo Nation and the Commonwealth of Northern Mariana Islands. It is important to contact the appropriate state agency at the destination. You should verify the most recent requirements for pets moving to the new location.

After the Veterinarian Visit, What is Next on the “to do List” for a Pet Relocation?

Once the employee’s pet stops giving them guilt-inducing looks following the most recent visit to the veterinarian, the actual logistics should be considered. What is the best option to get the pet from their current home to their new home? There are a multitude of choices, each with its own advantages.

Automobile

What could be easier than a nice drive with a pet? Consider how long the drive will be. Is it an hour, or is it several days? An hour, or even a few hours, might be easily doable for the employee and their pet. From a pet’s perspective, this might be their optimal choice for their pet relocation.

Now imagine yourself in the back seat of your car for several days. Would you feel comfortable and happy? Remember traveling for a day or two (or more) will also require stops at night. Hotels may accepts pets, and may charge extra for this convenience. Safety is also an important consideration. Each transition into and out of the car may provide an opportunity for a missed leash or a losing grip. Groggy pets might be susceptible to a fall as they exit the car. As a result, a pet may not prefer long trips in the back seat of their owner’s car.

Air Travel by Carry-on Luggage versus Cargo

Pets that can travel by air in carry-on luggage must be small enough to fit beneath the seat. Cats, small dogs, a rabbit, and similar small pets may be able to travel this way. Service animals and emotional support animals generally do not need to meet these requirements. For pets that meet these requirements, this might be a favorable choice. They get to be near their owner, and are protected in their carrier during the travel experience.

Airline travel has changed during the COVID-19 pandemic. Travelers should look into various airline policies regarding pets, service animals, and emotional support animals. Online resources such as Guide to Flying with an Emotional Support Animal may provide helpful information.

Air travel by cargo may be the only option if the pet is large. While the vast majority of pets that travel by cargo do well, some issues give owners pause for concern. The U.S. Department of Transportation publishes a monthly report to assist consumers with information on the quality of services provided by airlines. According to the June 2020 report, there was one report related to pet relocation. Recently many airlines have suspended the option for pets to fly in cargo. From a pet’s perspective, this type of travel may be more challenging. Since they will not be in sight of their owner, they may not feel happy and secure.

Rail Travel on Amtrak

Amtrak allows pets to travel by rail provided they meet certain guidelines:

  • Up to 20 pounds (pet and carrier)
  • Trips no longer than 7 hours
  • Signed pet release and indemnification
  • Pet must be at least 8 weeks old, odorless, harmless, and not disruptive

Notably, pets must travel with a human. Amtrak does not ship pets, or allow them to travel as a checked bag. With their owner along for the ride, travel by rail might be a surprisingly easy and pleasant option. The built-in limitation for 7 hour trips might benefit both the employee and their pet by providing scenic stops along the journey. Pets that meet the requirements may find this to be a favorable option.

Specialized Pet Transport

The International Pet and Animal Transportation Association is an organization of professional pet shippers. With members located in more than 80 countries, IPATA pet shippers work together to provide safe and secure pet relocation. There are specific requirements that must be met, such as vaccinations and health certificates. If the employee’s timing is critical and they are not able to bring their pet through air travel, IPATA may provide an option to meet their needs. From a pet’s perspective, if they can’t travel with their owner, then traveling through a professional service might be a viable option.

International Pet Relocation Health, Vaccinations, and Possible Quarantine Requirements

The United States Department of Agriculture Division of Animal and Plant Health Inspection Service notes there may be health requirements specific for international destinations. These requirements may include obtaining a health certificate, updating vaccinations, requisite diagnostic testing, or administration of medications.

The international relocation may require quarantine time for the pet. For example, pet relocation from the United States to Taiwan requires the importer to “…apply for an import permit and make a reservation of the post-entry quarantine space from animal quarantine authority at the port of entry.” Also, “When conducting the quarantine inspection, BAPHIQ (animal quarantine authority) will check the veterinary certificate and detain the dog or cat at the designated post-entry quarantine location for 7 days. During quarantine detention, the blood of the dog or cat will be sampled and tested again for rabies antibody.” Ultimately, pets that may need to undergo quarantine are bound to not be the happiest tail-waggers. However, when they are reunited with their owners, their happiness may increase. Especially if the owner shares big hugs and some delicious pet treats.

What Does This Mean?

It is important for new hires and transferees to understand issues related to pet relocation. Employers should be sure to extend the same level of service to pets as they would to human members of the relocating employee’s family. They should also ensure safe animal transportation options are available.

Employers should work with a qualified and experienced Relocation Management Company (RMC) that can provide guidance for safe and reliable pet relocation. RMCs can help clients and transferees understand how to arrange for the best pet relocation options.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to help their new hires and relocating employees with pet relocation. We can help your company utilize pre-decision services to identify needs and requirements to ensure a smooth relocation process for the employee, their family members, and their pets.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. As a result, GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning about pet relocation solutions, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Immigration Rules Visas and International Travel

Mexico Immigration Alternatives in Response to Proclamation 10014

View of the Guadalajaran skyline.

Mexico immigration alternatives offer additional routes for US employers looking to hire foreign nationals. The Trump Administration’s Proclamation 10014 limits the entry of foreign nationals under several classes of immigration visas. The concept of “nearshoring” lets employers leverage a creative solution that may fulfill several business needs. Many countries near the US have less restrictions on their immigration policies than Proclamation 10014.

What are Mexico Immigration Alternatives?

GMS spoke with Michelle LePage, Founder/Managing Partner and Senior Global Administration Advisor at Global Mobility Partners, LLC. Michelle agreed to share her industry knowledge and immigration expertise on Mexico immigration alternatives.

Recap of the Proclamation 10014 Situation

The Trump Administration originally unveiled Proclamation 10014 on April 22, 2020. The proclamation has been referred to as “Suspension of Entry of Immigrants Who Present a Risk to the United States Labor Market During the Economic Recovery Following the 2019 Novel Coronavirus Outbreak.” On June 22, the Administration determined that this proclamation is subject to continuance through December 31, 2020. These proclamations result in limiting the entry of foreign nationals under several classes of immigration visas, including the following:

  • H-1B Specialty Occupations
  • H-2B Temporary Non-Agricultural Workers
  • H-4 Dependent Spouses and Unmarried Children Under 21
  • J-1 Exchange Visitors
  • L-1A Intracompany Transferee Executive or Manager
  • L-1B Intracompany Transferee Specialized Knowledge

Many technology industry companies  use these immigration visas widely, including industry leaders Apple, Google, Amazon, Salesforce, Facebook, and Twitter. Amazon Corporate LLC has filed 4,481 labor condition applications for H-1B visas from fiscal year 2017 to 2019, ranking at number 21 among all visa sponsors.

According to the Trump Administration’s intentions, Proclamation 10014 should drive these technology industry companies and many others to hire workers who are already living in the US. Still, many highly qualified workers are currently located in other countries, and companies may want to hire them domestically. Mexico immigration alternatives might provide another avenue for hiring highly skilled foreign nationals.

What are Mexico Immigration Alternatives?

US employers who want to hire foreign national employees may be able to use Mexico immigration alternatives. These alternatives will bring/keep the employee closer to the US than perhaps their country of origin. For employers that can meet the requisite criteria, a number of benefits may accrue, including:

  • Ease of business travel to/from Mexico
  • Lower costs and less time for business travel
  • Living in Mexico will increase foreign national employees’ experience and knowledge of other customs and cultures of North America
  • Mexico is the center of Latin America’s technology revolution
  • Startup GDL is a nonprofit organization working to make Guadalajara, Mexico’s second largest city, a leading technology hub

The United States-Mexico-Canada Agreement (USMCA) creates new opportunities for beneficial trade and economic growth throughout North America. USMCA is effective as of July 1, 2020. The agreement modernizes the 25-year-old NAFTA trade agreement between the three countries. U.S. Customs and Border Protection (CBP) administers the USMCA. As the second largest individual country trading partner to the US, Mexico already offers many strategic advantages including strong and established business relationships.

What are the Key Criteria?

At Global Mobility Partners, LLC, we have created a number of helpful documents that describe the requirements for various countries. For Mexico, the primary immigration category for temporary expatriates is known as a Temporary Resident Visa for Remunerated Activities (TRV). TRVs are for foreign nationals who are transferred to Mexico for a temporary assignment.

Our Mexico Work Authorization Summary Sheet notes three key criteria:

  • Assignment must be at least 180 days in duration
  • There must be a local sponsoring Mexican company holding current registration with the National Immigration Institute
  • The Mexican company must pay a portion of the employee’s salary

Mexico immigration alternatives such as the TRV are initially valid for 1 year, but may be extended:

  • Up to 4 years
  • Employers should initiate the application to extend temporary work status at least 6 months prior to expiration

Note: Our recommendation to start the extension application nearly coincides with the start date of the temporary assignment! Processing times may be lengthy and subject to change due to unforeseeable political situations.

What Should US Employers do About Mexico Immigration Alternatives?

The specific requirements for Mexico immigration alternatives require a thoughtful approach. We recommend US employers contact us before taking action. Important points for employers to note include the fact that spouses are not work authorized. However, non-married partners are allowed to accompany the employee, as are same-sex partners and children up to 17 years of age.

Employers should be sure the foreign nationals they seek to hire are aware of these and other specific requirements. Consultation with an expert from Global Mobility Partners, LLC is highly recommended. As a result, this will help US employers develop appropriate and effective solutions for Mexico immigration alternatives.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients learn about important issues such as visa and immigration options for their organization. Our mobility consulting team can help your company understand if it can leverage Mexico immigration alternatives with the assistance of the experts at Global Mobility Partners, LLC.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. As a result, GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Contact our experts online to learn more about Mexico immigration alternatives, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Visa Program Consultation

Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

Request a no-pressure, courtesy consultation from a GMS Mobility Pro. We’ll be in touch within 1 business day.

Categories
Home Purchase

California Solar Panel Mandate: What Does This Mean for Relocation?

Solar panel technician with drill installing solar panels on roof

As of January 1, 2020, the California solar panel mandate is the first statewide residential requirement for solar power in the United States. This mandate has several stipulations that require compliance for new construction homes. New residential homebuilders have direct impact, and must do one of two things:

  1. Install solar panels on new homes
  2. Build a solar power system that serves a group of new homes

The requirement may be waived if the property does not receive enough sunlight for the solar panels to be useful. However, the California solar panel mandate applies to virtually all new construction on buildings that are three floors or less, including:

  • Single family homes
  • Condominiums
  • Apartment buildings

Where Did the California Solar Panel Mandate Come From?

The California solar panel mandate was approved in 2018 by the California Energy Commission (CEC). The ruling is part of the state’s 2019 update of standards for building energy efficiency. The state is also working to reduce greenhouse gas emissions.

What is the Cost to Home Buyers?

On average, the new requirement may add $8,000 to $10,000 to the cost of a new home. The CEC estimates the California solar panel mandate will increase monthly mortgage payments by $40. However, it also estimates homeowners will save an average of $80 each month on energy costs.

What is the Difference between Leased and Owned Solar Panels?

Leased Solar Panels and the California Solar Panel Mandate

For home buyers, it is important to know if the solar panels on the home are purchased or leased. Solar panel leases may last several years. Some mortgage lenders will not allow leased solar panels to be included in a home’s valuation for mortgage purposes. Also, home buyers would need to agree to take over the payments on a leased solar panel system.

As such, home buyers should learn important points from the home seller such as:

  • Contract details
  • Length of lease term
  • Monthly fees
  • Warranty coverage
  • Manufacturer of the solar panels
  • Installation company
  • System size (how much power does the system generate)
  • Whether the local utility offers net metering (lets home owners sell excess electricity back to the power grid)
  • Does their company’s relocation program allow for leased equipment

Home sellers with leased solar panel systems should look into their options, including:

  1. Should they pay for the remainder of the contract?
  2. Can they find a buyer willing to take on lease payments?
  3. What are the requirements to transfer a lease?
  4. Is the warranty transferable? If yes, for how long?
  5. What is the cost to remove or relocate the solar panels if the buyer requests this?
  6. Will their relocation benefits be affected by leased equipment?

Owned Solar Panels and the California Solar Panel Mandate

Home sellers that own, rather than lease, their solar panels are in a comparatively better position. Several studies confirm that solar panels add value to a home. The California solar panel mandate will have the effect of increasing the value of homes that have solar panels installed by the home builder. Some estimates show homes with solar panels usually sell for around $15,000 more than other homes.

There are a few other significant benefits for home owners who choose to install solar panel systems:

  • There may be tax and other incentives
  • Solar panel prices continue to decline in cost
  • Owners may recover the cost of the system upon sale of the home

Also, some home owners may be able to receive credits on their energy bill under net metering systems when they send excess energy back to the utility company.

What Does The California Solar Panel Mandate Mean?

Home buyers should be aware of the new California solar panel mandate. This and other initiatives will continue to impact the real estate market in many ways. Employers with new hires and transferees who are looking to purchase a home in California or other markets with similar requirements should work with a Relocation Management Company (RMC). RMCs that have knowledge and experience with relocations are ideal sources for information relating to local housing market requirements.

The GMS network of real estate agents consistently leads the industry in the way its top agents market homes. Each agent has access to the latest technology and best practices for marketing real estate, and will understand how to approach issues relating to solar panel systems and the California solar panel mandate.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to provide solutions for their new hires and transferees who are looking to buy or sell a home. Our network of top agents market homes following industry best practices. As a result, they will have knowledge that helps home buyers and sellers understand what the California solar panel mandate means for their home buying and selling.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Contact our experts online to learn more about the impact of the California solar panel mandate on home buyers and sellers, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Domestic Relocation Domestic Relocation Trends Global Relocation Global Relocation Trends Job Market Job Seekers Labor Force

STATE TAX COMPLIANCE ISSUES TO CONSIDER WITH REMOTE WORKING POLICIES

young woman working on laptop
Shot of a young businesswoman using a laptop while working in her home office

Telecommuting or the new Work from Anywhere policies are not a new concept. With traditional Work from Home policies, employees are typically within commuting distance of their office. In recent years, Work from Anywhere policies have begun to emerge. Under this type of arrangement, employees have greater flexibility to choose where they live and work.

COVID-19 Pandemic Accelerates Work from Anywhere Policies

While the number of employees working remotely has been growing at a steady pace over the past several years, the COVID-19 pandemic has now pushed this issue to the forefront and more companies are considering Work from Anywhere policies that allow employees to live and work in any location. While this type of policy is very attractive to both the company and employee, this type of policy can trigger new tax compliance issues for both parties.

GMS spoke with Erika Beddow, Business Development Manager at Global Mobility Tax, LLP (GMT).  Erika has over 20 years of experience in public accounting and in the global mobility industry. She has worked on an array of multi-national clients throughout her career. Erika also enjoys navigating complex situations while prudently mitigating risks, identifying value creation opportunities, and building strategic partnerships.  Erika agreed to share her expert guidance on this issue.

What is Important to Know about Remote Work Policies?

Erika notes that as with domestic business travel planning, it is important to note that each US state has its own unique laws and reporting requirements. During the COVID-19 pandemic, many employees have been telecommuting in states other than where they typically work due to stay at home orders and quarantine. These employees can unknowingly trigger state and local tax issues for the company, as well as payroll obligations in the state in which they are working.

Lacking State Guidance Regarding Issues Relating to Remote Work

Currently, Erika reports that only a few states have provided guidance and certain relief for companies and individuals who are working in their state temporarily due to the COVID-19 pandemic. Unfortunately, there is still a lot of uncertainty surrounding how many states will tax these individuals and businesses.

Possible Triggers for State Nexus and Payroll Withholding Requirements

As the globe recovers from the pandemic and employees continue to work remotely, Erika strongly believes that companies will need to consider the remote worker implications to avoid unknowingly trigger state “nexus” and payroll withholding requirements. (Nexus is the term used to describe a company being recognized as an entity in a particular state or jurisdiction.)

Additionally, businesses may face penalties and interest for failing to withhold state income taxes, while employees may have an increased tax filing obligation.

Work from Anywhere Policies: Benefits Versus Potential Cost Increases

Some benefits to Work from Anywhere policies are that they provide the employee more flexibility in where they live and work and the hours in which they work. However, Erika believes that companies need to be aware of the possible increase in costs to the organization. She notes that some increases can include administrative costs, payroll obligations, and tax implications for this type of policy.

According to Erika, while putting in place Work from Anywhere policies, companies will need to consider the following important points:

  • Understand corporate and payroll tax compliance obligations, not only in the location where the company operates, but also where their employees are living and working.
  • Monitor and track the location of where their employees are working.
  • Determine whether the employee’s work location has triggered corporate tax responsibilities due to state nexus.
  • Report employee income correctly and withhold appropriate taxes based off where they are tax resident as well as working.
  • Educate employees on state filing requirements and residency rules and provide tax assistance if necessary.
  • Provide guidelines for states the company can comply with versus states that may be too expensive due to payroll complexities and state nexus.

States are Increasing Their Ability to Track Remote Workers and Business Travelers

Many states have already been stepping up their ability to track remote workers and frequent business travelers prior to the COVID-19 pandemic. However, COVID-19 is putting pressure on state budgets. As a result, many states will likely increase their review of a company’s payroll filings and corporate nexus as more employees start working and living in different states than the employer.

How Work from Anywhere Policies May Lead to Non-Compliance

Companies can easily fall out of compliance if they are not tracking where their employees are working from and reporting the income and withholding taxes in the other state. Non-compliance can lead to unexpected tax implications for both the employer and employee, including fines and penalties.

If a company is considering implementing Work from Anywhere policies, each employee’s situation should be carefully reviewed. Erika states it is important for companies to determine whether any employee working in a different state has triggered state nexus, and to review the specific payroll tax withholding obligations in that state.

Solution to Help Companies Considering Remote Work Policies

GMT has put together a service solution to assist companies in evaluating and analyzing these issues. This solution helps companies by:

1. Implementing the GMT 2020 State Tax Compliance Solution

  • Ensuring payroll compliance and tax withholding
  • Advising employees on state residency and state tax filing requirements
  • Providing individual state tax services for your employees

2. Identify and quantify the risks state to state for remote workers

3. Discuss and draft an action plan for monitoring employees

4. Help find the stakeholders and create reports to support the action plan

5. Assist with systems integration to automate the process

6. Analyze and assist with state trailing liabilities from equity awards

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients learn about important issues such as tax compliance for their organization. Our mobility consulting team can help your company understand how to implement Work from Anywhere policies. We can also help your company to understand issues of compliance and non-compliance to state tax requirements with the expert assistance of Global Mobility Tax, LLP.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Contact our experts online to learn more about Work from Anywhere policies and state tax compliance versus non-compliance issues, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Domestic Relocation Challenges Global Relocation Challenges Talent Mobility

Airline Travel and COVID-19: Subject to Change

Businessman holding digital tablet at airport using protective mask

For business travelers, constant change is the message for airline travel during the COVID-19 pandemic. Flight rescheduling and cancellations, questions as to the ability to receive a refund, the inability to reach a destination due to local restrictions, and shifts in business priorities result in continual disruptions. It is difficult to predict the “new normal” for anything related to airline travel.

Airlines for America (A4A), the industry trade organization representing the leading U.S. airlines, has been working with its members to develop and enforce new policies. Changes abound in requirements, cleanliness, food offerings, and service centers all across a traveler’s journey. However, major airlines seem to be coalescing around a few main points for the summer travel season.

Get Ready to Wear a Mask for Airline Travel

Much of the US is still grappling with the concept of mask wearing. Some governmental units require masks, while others do not. Major airlines recently took the proactive approach of requiring masks for entry onto a plane. Additionally, many major airports also require masks in terminals, security and gate boarding areas, and around areas such as car rentals, trams, buses, and trains.

American

American requires customers to wear a face covering while on board aircraft and at the gate. Customers will receive notices and reminders of the policy at the airport and during the flight. Customers who do not comply will not be able to board a plane, and may be denied future travel with the airline.

Exceptions:

  • Some passengers are exempt from the face covering requirement
  • Policy does not apply while customers are eating or drinking

Delta

Delta requires all customers to wear a face mask or appropriate face covering. Face coverings will be required starting in the check-in lobby. This requirement will carry across all Delta touchpoints. As a result, face masks are required at Delta Sky Clubs, boarding gate areas, jet bridges, and on board the aircraft. Delta is adding digital notifications, signage, and announcements starting before customers leave home and all during their airline travel with Delta. Delta will refuse to allow flyers without masks to board flights, and will add them to a “no-fly list.”

Exceptions:

  • People unable to keep a face covering in place, including children
  • During meal service

United

United requires all passengers to wear a face covering onboard its flights. Passengers who do not comply will be placed on an internal travel restriction list. Customers on this list will lose their travel privileges on United for a period of time. The duration of time will be determined pending a comprehensive incident review.

Exceptions:

  • Individuals who have a medical condition or a disability that prevents them from wearing a face covering
  • Those who cannot put on or remove a face covering themselves
  • Small children
  • When eating or drinking

You May (or May Not) Notice Safety Barriers During Airline Travel

Similar to various shields and barriers you might see at salad bars, the grocery store, or perhaps visiting a teller at a bank, you may notice new safety barriers in place. Often made of plexiglass, these clear shields provide a barrier between people in those places where social distancing may be difficult. Plexiglass is both sturdy and translucent. Therefore, plexiglass may appear as clear as glass and is often designed to blend into its setting. Ideally, the barriers will offer safety without comprising visibility.

For example, Delta’s Flight Product subsidiary designed and manufactured custom safety barriers made of plexiglass for check-in desks in lobbies, gates, and Delta’s Sky Club counters. United notes that it has installed sneeze guards at check-in and gate podiums. American is installing commercial-grade shields at ticket counters.

Greater Cleanliness Standards in Airline Travel

Anyone who partakes in airline travel will inevitably see a greater emphasis on sanitation and disinfection. These measures are being instituted throughout the entire industry. Therefore, planes, jetways, gates, lobbies, doorways, and clubs—in fact, nearly all areas from start to end have heightened cleanliness.

American

American has increased cleaning and sanitizing of all areas including kiosks, ticket counters, passenger service counters, baggage service offices, lounges, clubs, gates, boarding areas, and planes. It has also added hand sanitizing stations and dispensers before and after security areas in certain locations, as well as on flights. American is working with Vanderbilt University Medical Center for guidance on health issues and cleaning procedures. Importantly, American is seeking GBAC STAR™ Accreditation from the Global Biorisk Advisory Council to ensure the airline has the proper procedures to respond to biological threats like COVID-19.

Delta

Delta is sanitizing every flight using electrostatic sprayers. The airline is using the same procedure for Reservation Centers, employee work areas, break rooms, lounges, and office spaces. Delta Clean is the airline’s new standard of clean for its airline travel customers. Noticeable additions include hand sanitizer at various touchpoints, and disinfecting surfaces across the airport experience.

United

United CleanPlus℠ is the airline’s joint program with The Clorox Company to redefine all of their cleaning and disinfecting procedures. In addition to working with Clorox, United is also working closely with experts at the Cleveland Clinic for advice on enhancing COVID-19 cleaning and disinfection protocols with a focus on safety for employees and customers.

What Should Employers do About Airline Travel?

Companies should review their current travel policy and relocation program to determine if they are using the best travel tools. RMCs with expertise and experience in travel policies for relocation programs are a valuable resource for policy reviews that will help business travelers and companies respond to airline travel that is subject to change. Companies should schedule a policy review on a regular basis. This will help them learn about the latest features to streamline and enhance reporting and compliance requirements.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients benchmark their relocation program and incorporate the best travel tools into their business travel policy. Our team can help your company understand how to provide the best travel tools for your traveling employees who must arrange airline travel during the COVID-19 pandemic.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. As a result, GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Learn how to incorporate the best travel tools that will help with airline travel changes into your company’s relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Business Services Choosing a Relocation Company Corporate Relocation Relocation Best Practices Relocation Challenges United States Economy

Post-Pandemic Business Planning: The Importance of Pre-Decision Services

Shot of a mature businessman having a brainstorming session against a glass screen in a modern office

What will your employer’s post-pandemic business planning require? The United States has seen two months of unexpected employment increases, far beyond expectations. According to the U.S. Bureau of Labor Statistics, the employment situation over the past two months reflects:

May 2020 Employment Situation

Nonfarm Payroll Employment Increasing by 2.5 million

Unemployment Rate declining to 13.3%

June 2020 Employment Situation

Nonfarm Payroll Employment Increasing by 4.8 million

Unemployment Rate declining to 11.1%

A Returning Workforce Requires Thoughtful Post-Pandemic Business Planning

Many employers are currently making plans for their returning workforce. They may need to develop new workspace configurations in order to limit COVID-19 issues. They may also need to hire new employees, develop a robust talent acquisition program, or arrange for short term domestic assignments.

Post-pandemic business planning must take into account a variety of issues and factors that many employers have not ever thought of, let alone have expertise in. Operating a business in the aftermath of COVID-19 requires significant measures of research, analysis, and thoughtful approaches to solutions.

Pre-Decision Services Help Employers Understand the Issues of Importance

Employers focusing on talent acquisition as part of their post-pandemic business planning should work with a Relocation Management Company with knowledge and experience in pre-decision services. As the original pioneer of the benefits of pre-decision services, Global Mobility Solutions (GMS) can help employers understand the issues of importance to new hires and transferees. GMS offers a wide range of pre-decision services including candidate assessments that help clients assess the circumstances of prospects who are likely to succeed.

Candidate Assessments Provide Valuable Information for Post-Pandemic Business Planning

Candidate assessments provide valuable information for employers as to the expectations of new hires and transferees. New workspace configurations and requirements should be clearly communicated during the pre-decision phase. Questions and feedback from candidates and transferees will provide a valuable source of input and guidance for an employer’s post-pandemic business planning with respect to COVID-19 planning and hazard reduction efforts. With respect to post-pandemic business planning, pre-decision services provide several benefits for clients by:

  1. Clearly identifying a candidate’s issues, concerns, and questions
  2. Completely eliminating any risk of non-acceptance
  3. Minimizing policy exceptions
  4. Increasing the accuracy of budgets
  5. Providing cost savings for the client
  6. Increasing job acceptance ratios
  7. Streamlining the candidate’s orientation to the new location

How Can GMS Help Your Company’s Post-Pandemic Business Planning?

GMS has the knowledge and experience to help your company understand how to identify issues and learn about useful resources. GMS’s team of domestic relocation experts can help your company learn how to use information gathered during pre-decision services to enhance post-pandemic business planning.

As a result, we can help your company develop robust plans during its post-pandemic phase of operations. This will help maintain your competitive position in the marketplace for highly skilled and qualified talent.

What Should Employers do?

Employers looking to enhance their post-pandemic business planning should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs are ideal sources for information on corporate relocations, workspace setups, pre-decision services, and many issues specific to each employer’s needs surrounding new hires, transferees, and talent acquisition.

Conclusion

GMS’ team of corporate relocation experts has helped many of our clients determine how to identify specific needs of new hires and transferees through pre-decision services. Our team can help your company determine how to leverage information gathered from new hires and transferees. As a result, this will help your company enhance its business planning process.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators. This leadership revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Learn best practices from Global Mobility Solutions. Our relocation industry and technology experts are dedicated to keeping you informed and connected. Contact our experts online to learn more about how your company can leverage pre-decision services to enhance its post-pandemic business planning, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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