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Global Relocation Challenges Global Relocation Tips Relocation Best Practices Relocation Challenges Visas and International Travel

Immigration Options for Remote Work Policies

Companies can still be held responsible for immigration rules on remote employees

There’s no doubt that the Covid-19 pandemic changed the remote work options for millions, maybe even billions, of employees worldwide. Companies sending their employees to work from home worked out well in numerous industries for organizations and employees alike. Employees like the flexible work schedules that remote work policies offer, while companies were initially surprised but overall pleased with their productivity. 

 

There’s still some debate about whether companies should remain in full-time remote work settings or urge employees to return to the office. While many organizations decided against a full-time office return, some factors should be weighed in. Again, there is no denying that offering remote work flexibility helps hire and retain top talent, but from the company’s standpoint, they need to make sure all of their bases are covered. 

 

Are companies responsible for immigration regulations if their employees live in a different country than the headquarters? For example, does it make a difference if the employee relocates independently or is asked to do so for a global assignment

 

Companies should arm themselves with visa and immigration knowledge when creating remote work options for their workforce. Here are some immigration matters to keep in mind as employees turn to the digital nomad lifestyle: 

Employees with H-1B Visa

Employees with H-1B status can only work at the specific locations listed on their Form I-129 petition or Labor Condition Application. However, they can also work remotely if their home is within a reasonable commuting radius from their employer’s office (if their home is outside of the MSA listed on the LCA or not within a reasonable commuting distance, then an amended H-1B Petition would need to be filed by the employer to allow for this working arrangement). If working remotely full-time or in a hybrid arrangement, they will be asked to post a Notice of LCA at two locations in their new home for up to ten days. The employer can then update what is known as a Public Access File with records of the posted LCA, including the new location and the dates for the work assignment. 

 

In the meantime, H-1B employees traveling as digital nomads face various immigration issues due to the location-specific requirements of the visa type. It’s also important to point out that remote employees’ H-1B site visits still happen. So, those employees who work in a remote environment may be able to attend a site visit at their house.

Employees with E and L Visa Status

Entrepreneurs and investors who want to start a business in the United States or transfer multinationals from other countries around the world to a U.S. location often use E-2 visas, which must be issued according to bilateral treaties. In addition, the E-2 visa applicant must have the same nationality as the company’s ultimate owner.

 

The L-1 visa requires foreign and U.S. companies to share a joint ownership group. The foreign company must have also hired the employee in a managerial, executive, or specialized position for at least one year out of the immediately prior three years. The employee also must arrive in the U.S. to take on a similar managerial position. 

 

USCIS and other governmental agencies usually require evidence of a permanent, physical office address when evaluating E-2 or L-1 petitions. However, this may challenge companies/employers who do not have a physical location or address. In addition, USCIS also requires a physical mailing address for most forms, which could be troublesome for U.S. companies composed of digital nomads. 

GMS Has Visa and Immigration Specialists Standing By

When companies put together remote work policies, it is essential to have visa and immigration specialist assistance. Organizations do not want to expose themselves to fines, additional taxes, or other compensation obligations because of a lapse in immigration paperwork. Working with Global Mobility Solutions (GMS) can assure companies that their visa needs are up to date. Our team has over 30 years of experience in helping companies put together relocation packages emphasizing immigration regulations. 


Set up a free visa assessment consultation with one of our experts to ensure that your company is covered on all fronts when moving employees worldwide. And for other help on visa and immigration topics, check out our Knowledge Base.

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Relocation Challenges Relocation Programs United States Economy

IRS Increases Mileage Rate for Second Half of 2022

With Gas Prices on the Rise, IRS Increases Mileage Rate

The IRS announced in early June 2022 that they raised the optional standard mileage rate for the final six months of 2022. As a result, when taxpayers file for this year, they can use the new rate to calculate the deductible costs associated with driving for work and other certain purposes. 

The new rate is an increase of 4 cents, pushing it to 62.5 cents per mile. The rate increase comes with the recent spikes in gas prices. Typically the IRS adjusts mileage rates once a year, usually in the fall. But because of the hard-pressed times of fuel prices, the IRS felt the need to act earlier this year. As a result, for travel that took place from Jan. 1 through June 30, 2022, taxpayers will have to defer to the previous rate of 58.5 cents per mile when filing taxes next spring. 

“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.” 

What the Mileage Rate Increase Means for Transferees

Like almost every other industry, high gas prices have an impact on relocation services. The tiny bit of good news here is that moving expenses are tax-deductible. So, this higher mileage rate can help offset moving expenses for those relocating for a new job or promotion. 

Many companies use Capped Relocation Policies. These policies are implemented to have a pre-approved, maximum budget that the company is willing to cover for their moving employee. This policy is meant to provide a measure of consistency with relocation costs.  

But the problem occurs in months like these when gas prices set higher costs for all aspects of the relocation process. With higher prices at the pumps, that means shipping household goods becomes much more expensive. Companies working under capped relocation policies should update their talent mobility programs ASAP, to ensure they provide enough coverage for new employees. 

If candidates feel they are not getting enough bang for their buck regarding relocation coverage, they may turn down the job offer. It is hard for companies to hire top talent in today’s market.

GMS Wants to Help with Relocation Costs

Global Mobility Solutions (GMS) team of expert relocation specialists always stays up to date with industry trends such as the mileage rate increase. We also specialize in assisting companies in updating or even creating relocation policies that make the process affordable for companies and beneficial for employees. 

GMS is here to answer any relocation-related tax questions, and we are always available to set up courtesy consultation meetings to review and update current relocation packages. Our goal is to ensure that your company is relocating your employees in the most cost-efficient way possible. Feel free to reach out to us today or check out our Knowledge Base, which is full of information on the relocation process.

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Relocation Management

5 Questions to ask in a Relocation Services Proposal

Here are some key points to bring up when seeking relocation management services

In a competitive hiring market, companies see firsthand how hard it can be to not only obtain but retain top candidates in their industry. Human resources teams in numerous industries are offering great hiring incentive programs in hopes of landing the most qualified applicant to fill the vacant spot. One of the best incentives to offer is a relocation package.

When hiring for a position, a qualified local candidate might fill that hole just fine. But what if there are no local applicants who qualify? Only fielding applications from locally based people can pigeonhole the hiring process for each position. But if the hiring manager can negotiate with employees globally then it opens up the options for getting the right talent in the right seat. 

The best route to take when offering relocation services is to work with a qualified and highly reputable relocation management company (RMC). Many companies understand that working with an RMC will provide their employees and families with a seamless relocation process. 

Hence, they seek pricing and bids from multiple RMCs to assure they are getting the best price. However, determining how to choose a qualified RMC can be challenging for a company that does not have a complete understanding of the talent mobility process. Therefore, these questions will help identify those with the most experience and best relocation management services.

1. Overview of the Company/General Company Information

RMCs should provide information about their principals, organizational structure, and account managers. A history of the company will give insight into its growth and industry relationships. Third parties and business partners used as vendors should be fully noted. But the important note to walk away from here is to find out who and how many points of contact the relocating employee will have during the process. 

Relocating a family is not an easy process. The last thing a moving employee wants is to not know who to reach out to at all times. Verify with the RMCs that each transferee will have a go-to account manager or relocation expert they can contact directly at all times.

2. Relocation Services and Supplies

There is no one size fits all relocation package. Every company will have different needs depending on how many employees they relocate, the timelines they have to relocate them, and the number of talent transfers they perform each year. That’s why companies who are vetting RMCs should find out about the relocation services offered and if those services can be tailored to their needs. 

Consider this question as a detailed menu of what the RMC will provide. Look for information related to specific areas, including:

  • Policy Counseling
  • Expense Administration
  • Cost Projections
  • Household Goods Moving Services
  • Temporary Housing
  • Home Marketing Assistance
  • Guaranteed Buyout/Amended Value Sale Program – Home Sale Assistance
  • Buyer Value Option Program – Home Sale Assistance
  • Home Inventory Management
  • Home Finding/Purchase Assistance
  • Mortgage Assistance
  • Rental Assistance
  • Property Management
  • Spouse/Partner Assistance

3. Quality Assurance/Customer Service

Good information in this section includes customer retention rates, complaint resolution processes, methods of communication, and all reporting and tracking systems available to the company and its relocating employees. In addition, the RMC should note how they account for order delivery, planning, and revisions to shipments.

Website services and information technology solutions as they apply to customer service should be described in detail. Look for a company that provides a robust solution that can easily integrate into your company’s current systems. True innovators should speak to their experience and history within the relocation industry.

4. Transition Process and Projected Relocation Timeline

In this section, the RMC should describe the transition from the pre-decision services to the final destination, including the setup of technology and rollout of the talent mobility program. The staffing structure for account services, including one-on-one services, should be described. The company should outline their support staff process, regular hours of operation, response times, and hierarchy to escalate issues.

5. What Sets Them Apart From Competitors?

The RMC should call out their main advantages that companies and employees will achieve by selecting their firm to provide relocation services. Several distinct advantages should be described in detail, and the RMC’s value proposition on each point should be clearly defined. At least three references who can speak to their experiences working with the RMC should be supplied as well.

GMS Checks All These Boxes

At Global Mobility Solutions (GMS), not only do we provide unbeatable relocation management services but we are the innovators of the talent mobility industry. For example, in the early 1990s, GMS was the first relocation company to register as a .com, 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. Therefore, this allows GMS to provide clients with an ideal platform with fully integrated information technology solutions for their relocation programs. 

At GMS, we take pride in providing award-wining relocation services to companies across numerous industries. We would love to have one of our expert team members walk you through your current relocation policies. From there, we can then decide the best route to take to help get your employees from point A to point B. With over 30 years of experience in the relocation and real estate industry, our team of relocation coaches strive to make the moving process as seamless as possible. 

 

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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
Buy a Home Choosing a Relocation Company Corporate Relocation Domestic Relocation Domestic Relocation Challenges Relocation Challenges

Rising Interest Rates Impact Job Relocation Transferees

Some options to include in relocation packages to help offset high-interest rates costs

As we enter peak move season, many are taking notice of the rising interest rates on mortgages. There is no doubt that this affects anyone who is relocating for a new position. In addition, interest rates have a significant say in the bottom line of monthly mortgage costs, which could sway a transferee’s decision on a home purchase. 

Add rising interest rates to the significant increase in average home prices, and the impact on purchase power shifts for many who are relocating to a new state. But why is this happening? And what can companies do about it to help employees in their relocation process

While there’s no magic relocation package that can include a lower interest rate or first dibs at bidding on a home, there are a few workarounds that might be able to ease the process for the transferee.

Will Interest Rates Continue to Rise?

Many real estate experts would predict that interest rates will continue to rise in the immediate future. With rates going up, the Federal Reserve has begun to pull back on the purchase of mortgage-backed securities (MBS). This will likely hike up interest rates because the return rate on mortgage bonds has to be higher to bring in investors. 

The Federal Reserve controls the percentage of the Fed funds rate. But that does not mean there is a direct correlation between short-term interest rates on funds from banks and consumer interest rates. If it becomes more expensive for banks to borrow, they are more likely to pass that cost on to consumers through higher interest rates. This is the main reason for those predicting interest rates to rise in the coming month.

It’s worth mentioning that interest rates were low for so long to boost the economy while the world dealt with the COVID-19 pandemic. This favored higher home prices because lower interest rates meant that buyers’ budgets could be stretched further.

Updating Relocation Policies Can Help Offset Higher Interest Rates Costs

Hiring and maintaining top-level employees can be challenging. To get the right person in the right seat, companies should look into offering relocation packages to ensure they have the best chance of landing top talent. But what should be included in a talent mobility package to help offset these higher interest rates? 


Here is a breakdown of some different relocation policies that can help transferees on the real estate front.

Please note that all numbers and figures used are for example purposes only and not to be used as quotes for the home buying process.

Offer to Pay for Points

It is common for companies to include prepaid interest assistance in their relocation benefits. Buying points is a way of lowering the interest rate on a loan by putting money down upfront. If companies can include this option in their relocation packages, it could save thousands of dollars over the course of the loan. 

For example, let’s say the home the moving employee is looking at is $300,000. To keep the example easy we’ll just say the loan rate is 4%. If the company is willing to add prepaid interest assistance in their benefits, the company could pay $6,000 upfront to buy two points, which gets the interest rate down to 3.5%. While this doesn’t sound like such a difference-maker, it could save the home buyer just over $30,000 on a 30-year loan. 

Add a MIDA to the Relocation Package

Another great option to help transferees deal with high interest rates is to have a Mortgage Interest Deferral Assistance (MIDA) program included in the relocation benefits. This is another form of buying points down, but instead of paying for the decreased points upfront, the company would offer to pay the difference in interest between the former mortgage and the new mortgage. 

How this works is let’s say the moving employee has a current interest rate of 5%, but due to the market conditions when they move for the job, the interest rate they get locked into is 6.5%. The business could pay the employee the price difference on the monthly payment. This can help the employee stay afloat financially and still have some wiggle room when searching for a home in their new destination. Typically MIDA has a cutoff of about 1-3 years once the transferee’s relocation process is complete.

Include a Dollar-Based Mortgage Subsidy

This option works best for companies who want or need to know how much they will spend on mortgage assistance for moving employees. A dollar-based mortgage subsidy works because the organization is willing to pay a total of $25,000 to help the transferee with mortgage and interest rates. Instead of giving all the money upfront, the company could provide the employee 40% in the first year, 30% in the second year, then 20% in the third year, and finally, give them the last 10% in the fourth year. 

This strategy is popular for relocation managers because it lowers the transferee’s monthly mortgage payment while the company knows precisely how much they are spending upfront for the four-year option.

Work with GMS for Relocation Needs

Global Mobility Solutions (GMS) has been the relocation industry leader since 1987. Our expert team of relocation specialists has helped countless transferring employees get from point A to point B. In addition, we take pride in offering companies a way to tie in real estate programs into their relocation policies that provide options to help with rising interest rates. 

Many pre-decision services can also help the moving employee gain some buying power for their new home. For example, when working with GMS, clients have access to the best relocation technology, such as our mortgage calculator

When working with GMS, companies and transferees are not tied down to work with one mortgage broker. Instead, we work with a long list of vetted and qualified lenders to ensure moving employees get the best rates. In most cases, transferees can get lower interest rates than if they shop independently. In addition, our extensive lender list gives transferees different home buying and selling options for relocation. 

GMS knows firsthand how hard it can be to hire and retain top talent, so we want to help create competitive relocation packages that make the talent mobility process seamless for employees. Reach out to us today to schedule a free consultation on how our team can help set up mobility programs.

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