Category: Global Mobility

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Global Mobility Global Relocation Global Relocation Trends Relocation Programs

Tokyo-based Employees Urged to Use Relocation Incentives

Busy Tokyo streets
Entertainment night life district at Kabukicho in Shinjuku Tokyo.

Japanese government is offering workers perks to relocate to less-populated areas

Tokyo, always known for being one of the most populated cities in the world, is starting to get just a little too crowded. The dynamic lifestyle of this great city is what brings many people to it in the first place. Many relocate to Tokyo for school but then remain for job opportunities. With so many people living in Japan’s capital now, it is estimated that 30% of the country’s entire population is concentrated in the greater Tokyo metropolitan area. This resulted after 25 years of year-over-year hikes in the population numbers. The number of inbound migrants in 2020 was about 38,000, a significant decrease from about 87,000 in 2019 (down about 56%), but still of significant volume.

This centralization of the Japanese population in Tokyo has been identified as a significant national risk. The potential (and realized) damages to the country and the economy that can be caused by disasters such as infectious diseases and earthquakes occurring in such a densely populated area have highlighted the need for a change in thinking. The mitigation of the impact of such disasters occurring in Tokyo can be helped by working towards the building of a decentralized society.

Additional benefits of this new direction can create a positive impact on the people that live in Japan. While there is much to do in Tokyo, like all major cities, there are a few drawbacks. The crowds in this big city atmosphere can make life harder, especially in a pandemic setting like most of the world as seen in the past two years. Additionally, the cost of living is not cheap. Living in the greater Tokyo area can be extremely expensive compared to more rural countryside areas of Japan. In fact, Tokyo is consistently ranked as one of the most expensive cities in the world.

So, what is Japan doing to promote citizens to consider moving to more rural and less crowded parts of the country? The government is offering relocation incentives to those who are able to work remotely from their new home. This big urge to relocate people to less crowded areas can be financially beneficial for those willing to do so.

Financial Support Relocation Incentives

Hoping to revitalize the rural parts of Japan, the government is offering individuals grants of up to 1 million yen (about $9,000 USD) to move out of Tokyo, while working remotely of course. Remote work is an important aspect of this program, removing the need to commute in and out of Tokyo for work. It has been reported that the government is committed to shelling out more than $10 billion yen in grants for this program. 

On top of the grants, local governments are also offering programs to attract new residents to their cities and towns. Many municipalities are providing ongoing support to help new residents find employment. Some of these programs are even geared toward helping entrepreneurs establish a new business in a local storefront. There are also some relocation programs that are helping movers either purchase or rent a home in their new area.

Experience Relocation Support Through GMS

Japan is one of many countries right now offering government relocation incentives. Contact GMS today with any questions regarding your relocation program, policies, or needs. Our qualified team has been helping people relocate all over the world since 1987. We will listen to your needs, examine your relocation program, and provide expert feedback on how to develop a competitive program based on industry best practices.

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.

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Choosing a Relocation Company Corporate Relocation Domestic Relocation Global Mobility Global Relocation Relocation Best Practices Relocation Management

Advantages of Creating Competition Between Suppliers for Relocation Services

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Two serious caucasian men in suits discussing or planning business issues in the office. Colleagues or client and consultant are sitting at the table next to each other and talking.

GMS Always Fields Multiple Bids from Suppliers on Key Services

No one wants to pay more than they need to, this is especially true when it comes to the outsourcing of employee relocation services to a Relocation Management Company (RMC). Cost is generally the #1 driver of any procurement process, and it is wise to ensure you’re getting the most for your money before you sign on the dotted line. While saving money is a no-brainer, have you considered what steps your RMC is taking to ensure they deliver on cost savings for your relocation program?  

Many relocation companies have their own supplier base. These suppliers may consist of critical (and expensive) services, such as household goods transportation companies and temporary housing agencies. It is important to understand how your relocation company is leveraging these suppliers to reduce the impact of these services.

GMS Process to Keep Relocation Costs Down

Global Mobility Solutions, like most relocation companies, has its own, trusted network of suppliers. However, our network model is different due to our Multiple-Bid Process on key services. This process creates ongoing competition between our suppliers which ultimately results in lower prices and major relocation cost savings for our clients’ overall mobility spend. 

So how does it work? GMS analyzes each relocating employee’s unique needs, develops a service delivery plan, and then reaches out to at least two different suppliers for bids on key services. The suppliers’ estimates are audited for accuracy and submitted to you for final selection and approval based on the criteria most important to your organization. It should be noted that these are not just random or first-time suppliers who place bids with GMS. Each supplier is trusted and vetted by our network management team to ensure great service and competitive pricing. The process also allows us to develop creative service strategies to address every unique relocation need from each transferee. 

What makes GMS different is our independence and transparency in our supplier selection process. As we are not affiliated with any of our suppliers (van lines, corporate housing, real estate, destination services, immigration, or otherwise) we can subjectively vet our supplier base, ensuring the best possible quality for the best possible price across all of our key services. Some RMCs own or are owned by the suppliers they utilize which prevents the ability for true competition amongst the sub-suppliers servicing your account.

Additionally, GMS benchmarks and reviews our supplier pricing and negotiated rates on a quarterly to annual basis to ensure competitiveness by service in your specific relocating markets. These two features provide GMS clients with an umbrella of cost savings coverage while enhancing the quality of each relocation.

Let GMS Provide Relocation Services for Your Company

Operating a workforce relocation program can be expensive, but in many cases, it’s the best way to ensure your organization remains competitive in the acquisitions of talent to fuel your ongoing success. To have a better shot at cutting down relocation costs during the process, it is important to ensure your RMC utilizes a competitive bid process between suppliers on key services, such as household goods transportation, corporate housing, and more. Competition is always good for the consumer, driving down prices and increasing quality. GMS ensures the best price possible 100% of the time. For more information on corporate relocation services and program management from GMS, reach out today to schedule a call with one of our qualified team members.

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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Global Mobility Global Relocation Global Relocation Tips Household Goods Relocation Management

The Shipment of Household Goods

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Black fragile symbol on cardboard box

Shipment of Household Goods Explained

When planning a family move or relocating for a new job, one of the main points that may come to mind is how to move everything in one’s home. Looking around the house to take stock of your many possessions can cause stress. From clothes to dishes, artwork to vehicles, office equipment to bedroom furniture – decisions must be made on what stays and what goes. Working with a reliable moving company that can promptly and safely pack, and then move your household goods can make that process easier. 

 

What are household goods? While there is no exact definition, household goods (commonly abbreviated as HHG) are most often referred to as a mix of items, utensils, clothing, and furniture that reside in your house. Because there is such a wide range of what fits into the concept of “household goods” it can be difficult (mentally and physically), risky, and time-consuming for an individual or family to move on their own. 

 

If the move is taking place because of a new job or a personnel transfer, many corporate relocation benefit packages include some form of provision for the shipment of the employee’s household goods. In many cases, the relocation management company (RMC) that is managing the employee’s move has access to a reliable HHG transportation company to perform the heavy lifting related to the move. Conversely, some organizations may leave their relocating employees to their own devices to find an appropriate moving company. In these situations, some limited financial support or reimbursement is provided to the employee once the move is complete.

Why You Should Use a Professional Moving Company

Let’s start by pointing out the obvious. If household items are not packed by professionals there is a risk of items being broken or damaged upon delivery. Companies that specialize in household goods shipping can properly pack items to assure reduced risk of the item being broken. Many reliable moving companies will also have insurance for items if something is broken, damaged, or misplaced. In fact, eligibility for shipment coverage may be predicated on the movers performing the complete packing of the household goods.

 

It is also worth stating that if the relocating employee attempts to pack, move, and transport their household goods in a rental truck, there runs a risk of serious injury. The movement of larger items, improper lifting techniques, and repetitive movements can lead to an injury. This may impact the timeline of the relocation, or possibly result in a workers compensation claim if the move is company-sponsored.

 

Another fact that many might overlook is the transfer of these personal goods to the new city or state. Traveling cross country in an unfamiliar truck or pulling a trailer is not easy, and can take more time than many might realize. If the relocation is international, the logistics become increasingly complicated and out of the reach of the majority of transferees.

 

Allowing a professional moving company to pack, handle, and ship the employee’s household goods is more time-efficient. Every relocation consists of many moving parts. Stressing about the packing and moving of the transferee’s household goods doesn’t need to be a complicating factor. Additionally, if moving for a new job or position, there might be a short timeframe in which the relocation has to be completed due to a job start date. Hiring a moving company can help ensure that the household goods are moved quickly and will not hold up the relocation.

The Networks That Support Household Goods Shipping

Unlike the local movers many might think of when discussing moving, relocations generally occur over great distances. The van lines that are contracted to perform these types of moves will use larger trucks and a sophisticated logistics network to move the goods across the nation, or even around the world. Components of this network will include semi-trucks, train/rail cars, airlift vans (special containers for air shipments), and even ocean containers loaded onto vast ocean-based vessels. These networks are used to consolidate shipments and speed the overall transportation process. Commonly, local agents of the transportation company on both sides of the move will be called upon to assist with the loading and unloading process. 

 

Additionally, specialty companies may be called in to perform special crating services, remove and package wall-mounted televisions, prepare sensitive items for transport, or even ship your automobile. Storage solutions are also on tap in the event you need temporary storage at your destination while you find a home, or if you are on an overseas assignment.

 

Lastly, animal shipments are a commonly overlooked necessity for those relocating. Pets are more than just animals, they are beloved members of anyone’s family. As such, specialized animal transport companies help to ensure the transferee’s pets are traveling under safe conditions. Transporting pets can require additional documents, immunizations, quarantines, and specialized kennels/crates. Transportation methods geared towards animals significantly reduce the amount of stress on the pet as well as instill confidence in the employee’s knowledge that their beloved family member is being well-cared for.

Why You Should Use a Corporate Relocation Company

Working with a corporate relocation company like Global Mobility Solutions can help reduce the stress of household goods shipping. We provide access to our vetted, certified, and highly competitive network of household goods specialists. By including HHG services in a thoughtfully designed relocation policy and moving process, you can ensure that your transferees arrive at their destination on time and with as little distraction as possible, ready to focus on their new position. GMS can be contacted as early as today to discuss the shipment of household goods to any location in the world.

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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Employee Development Global Mobility Global Relocation Immigration Rules

Employer Immigration Compliance Must Be Spoken: Guidance for Cross-Border Mergers & Acquisitions

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Envelope from U.S. Citizenship and Immigration Services with the American flag on top/U.S. immigration concept

Get Ahead of Problems Faced in Cross-border Mergers and Acquisitions

Merging branches or acquiring new businesses is a complex process. These transactions involve numerous parties and have an abundant number of moving parts. This is the case, even more so, with cross-border mergers and acquisitions (M&A). What happens when the merger or acquisition is obtained in another country? 

Businesses are understandably focused on the economic and financial aspects of the deal, not so much on employer immigration compliances. However, these compliances are important and should not be overlooked. Imagine trying to relocate or transfer employees from one branch to another, only to be held up by visa and immigration issues. The issues that delay employment transitions and the assessment of liabilities are best addressed early in the process to allow your organization enough time to overcome any compliance risks. 

In almost any merger, acquisition, or change of entity, employers will need comprehensive plans to ensure relocating employees are able to validate their immigration status for their new country of employment. Employers who fail to accurately assess their immigration needs risk major business and labor disruptions, or the loss of key employees due to visa and immigration holdbacks. 

An effective M&A agreement will be prepared and determined appropriate based on the following points:

Deal Structure

Is it a stock/share deal?
With a stock purchase, the legal entity being purchased is often maintained and the purchasing company inherits all of its foreign workers. It will be up to the purchasing company to confirm that all these workers’ permits/visas are compliant and if any changes to immigration status will be needed.

Is a new legal entity being created?
As often is the case with a merger, an entirely new entity is created. Under some jurisdictions and work permit types, foreign employees are only authorized to work for the original company that sponsored them. In these situations, a new work permit may need to be applied for, or at the very least, an amendment made to the existing permit.

Change in Staffing

Will the deal affect any employment contract type or status?
In many countries, a foreign worker’s employment authorization is tied to the employment contract they signed with their original employer. If this contract is made void through a merger or acquisition, the status of the work permit could be as well. It is important to check with the local immigration authorities to see if amendments are needed. 

Will the deal cause any employee on a work permit/visa to be promoted or demoted?
Often a foreign employee’s type of work authorization is tied to their seniority/position or their income level. Depending on the jurisdiction and the terms of the work permit/visa there may need to be a change of status filed with the local authorities. 

Will the location of work permit/visa holders change?
In some countries, a foreign worker’s visa/permit may be tied to a particular province/state or even city. If workers are going to relocate to another region because of a merger or acquisition, an amendment may need to be made to their work authorization. 

Will job titles of work permit/visa holders change?
Depending on the country and type of work authorization originally granted, if a merger or acquisition results in the changing of job titles for foreign workers there may need to be an amendment made to their work permit.  

Will job descriptions of work permit/visa holders change?
If a work authorization was originally granted based on a foreign worker’s particular skills and the type of work they perform, it is important to check if new work authorizations will be required if their job description is going to change. 

Will salaries of work permit/visa holders be adjusted?
In some countries, a foreign worker’s visa/work permit type is often tied to their income level. If there are changes, he/she may require a new work permit or have an amendment made to their existing work authorization.

Assess Potential Red Flags

Understand visa/work permit processing time
If changes or amendments are needed to foreign workers’ work permits/visas, it is important to understand what processing times will be applicable. Processing times can vary drastically in different countries, and if not correctly managed a company might find itself in a situation where many of their foreign workers are not able to legally work immediately after the date of a merger or acquisition.

GMS Can Help with Employer Immigration Compliances

Global Mobility Solutions can help businesses with all of their global mobility needs and concerns, including companies who face problems with cross-border mergers and acquisitions. We partner with top visa and immigration companies to assure our clients’ their employees and their families are taken care of. Don’t let employer immigration compliance keep your company from merging or acquiring new branches. Contact us today to discuss your needs with a professional relocation expert.

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.

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Global Mobility Global Relocation Job Market

An Employee & Employer’s Guide to Expatriate Health Insurance

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The mid adult female doctor uses the digital tablet to show the x-ray to the unrecognizable senior man.

What Is Expatriate Health Insurance?

Relocating employees is not necessarily the easiest process. There is a lot that goes into moving a candidate to fill a role, from home-selling assistance to transportation of household goods to tax gross-ups, companies have to assure that the many needs of their relocating employees are covered. Typically, health insurance is something that is discussed in the negotiation stage of hiring. But what if the candidate is moving from another country? Each country has different health care systems and requirements for health insurance coverage, and employees’ existing insurance plans may not provide complete coverage when the employee is moving internationally. Newly hired employees moving internationally might have a concern about their coverage for the period before the new job’s health plan goes into effect. 

When hiring international applicants, it is recommended that companies have expatriate health insurance options in their relocation benefits packages. Expatriate medical coverage (also known as expat insurance) is temporary insurance that is provided for people living outside their home country. Many plans are designed to cover employees who are staying in one country or will be traveling to multiple countries during their work assignments.

Why Is Health Insurance Important for Expatriates?

Expat insurance comes into play when a relocated employee is considered a foreign national and does not qualify for plans offered by local insurance companies. An easy example would be a Canadian citizen who is living in the US for an extended period for work. Does their home health insurance provide the same level of coverage and cost-benefit when they are outside of their home country?

For the Employer

Companies may want to consider covering expatriate insurance benefits because it can help attract and maintain talented employees. When trying to fill a seat in the company, having the option of being able to interview, and ultimately hire, international applicants opens up more options.

For the Employee

International relocators should take advantage of expatriate insurance when offered due to the varied health coverage in different countries. As each country has its own healthcare system, it can be very confusing to know how the system works and what is and isn’t covered. Uninsured individuals who seek treatments could end up with massive bills later on. 

Expatriate health coverage also gives the moving employee peace of mind, not only knowing they’re covered for unexpected healthcare needs but in knowing they are protected financially as well. If an emergency or sickness were to pop up, that employee knows their coverage will help with medical bills.

What Type of International Health Insurance Plans Are Available?

When it comes to expatriate insurance coverage options, the line does not stop at just medical. There are plans offered by providers which also include: 

  • Health Insurance
  • Life Insurance
  • Disability Insurance
  • Group Insurance
  • Evacuation and Medical Evacuation Insurance
  • Dental and Vision Insurance
  • Property and Liability Insurance
  • Travel Insurance

All of these different insurance types can help attract the best possible candidate for any job opening. Again, people who travel internationally for work assignments might desire these types of insurance because in their home country they may already be covered by them.

Considerations to Take When Choosing Expatriate Insurance

While there are a few providers who specialize in expatriate insurance plans, it’s always a good idea to look into which plan will work best for any given person. Is the favored policy set up for travelers or locals? Does the insurance company have a good reputation? Are the brokers and employees of the company certified for their specific field/job? Can the company pay claims from abroad? How do claim payments affect taxes or reimbursements? Does the employee have a choice of local healthcare at public and/or private hospitals? Does the policy cover a range of conditions, or is it limited to medical emergencies only?

All of these questions are fair to ask when inspecting a provider. But the big question to ask is if pre-existing medical conditions are covered and how they’re handled. Pre-existing conditions in the employees’ medical history could be the make-or-break deciding factor in choosing a provider. Companies should be sure their employees can get treatment coverage for conditions that are disclosed at the beginning of their health insurance policy.

Incorporate Expatriate Health Insurance into Your Relocation Program

Providing relocation benefits is one of the best ways to assure a company that they have the best shot at hiring the right person for the right seat. Global Mobility Solutions has been assisting companies in setting up their relocation programs for over 30 years now. If your company is ready to implement expatriate health insurance coverage into their policies then reach out to us today. Making sure employees are covered in case of an emergency medical situation is important. Our qualified team can help set up relocation benefits with expatriate health insurance included.

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Business Services Choosing a Relocation Company Corporate Relocation Corporate relocation tips Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Global Relocation Relocation Best Practices Relocation Challenges

Discover Your Potential Relocation Cost Savings

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Closeup side view of group of software developers working late at IT office. There are three people gathered around two dual display computers. Back lit through large office window.

Relocation Cost Savings

To have the most successful and efficient workforce mobility program, mobility specialists and HR professionals should regularly evaluate their company’s relocation costs, benefits, and policies in order to uncover cost savings or areas in your relocation policies that may need improvement. Many companies manage their relocation needs in-house while others use relocation management companies to mobilize their workforce. Relocation policies should be reviewed with regularity to assure the company is spending wisely and saving money where possible. 

 

GMS makes this process simple with our industry-leading MyRelocation® technology. In addition to its client and employee-facing portals, MyRelocation® offers a suite of tools designed with your needs in mind. 

 

GMS is happy to announce our new Relocation Cost Savings Calculator. This easy-to-use tool provides companies with insight as to how much they could be saving when it comes to their current relocation program. If it has been a while since your company’s policies have been reviewed, or you are just starting to look into mobility services, this calculator can help determine your organization’s potential cost savings. 

 

It is not uncommon for companies to go years without changing or updating their relocation policies. While common, this practice can add up to serious costs over time as the direct costs related to relocation benefits react to various factors. Transportation prices change, home prices fluctuate, temporary housing costs increase, and the cost of living is constantly changing. To assure that your company is saving the most money while giving your employees the best relocation experience possible, it is important to check in on how you can be saving.

Calculating your Relocation Cost Savings

The innovative GMS Relocation Cost Savings Calculator looks at a range of common relocation program areas for cost-saving opportunities. With a user-selectable option for companies who handle mobility in-house or with an outsourced relocation management company. Key mobility policy elements that the calculator can highlight include: 

  • Program Fees
  • Real Estate Services
  • Household Goods Transportation and Storage
  • Temporary Housing Programs
  • International Relocation Services
  • Program Funding

The Cost Savings Calculator is quick and easy to use, and once various data points are input, the relocation calculator will compute your potential savings in a downloadable PDF to allow you to easily compare your current relocation costs against your potential savings. After that, a GMS Mobility Pro will reach out personally to help validate your potential relocation costs savings estimate, provide no-pressure guidance, and answer any questions you may have.

Validate Your Savings Using Our Relocation Cost Calculator

Are you ready to discover how and where your mobility program may benefit from a reduction in relocation costs? Simply complete the form below and a GMS Mobility Pro will provide you with a link to work through the tool. It is easy to use and only takes a couple of minutes if you have the right information handy. 


The GMS Relocation Cost Savings Calculator is free to use and comes with no obligation and no pressure to use. Get started now to discover how much your organization could be saving today.

Ready to Calculate YOur Program Savings? Request Access Now!

Are you ready to calculate your potential relocation program savings? Request access to our easy-to-use Relocation Cost Savings Calculator. Your Mobility Pro will grant your access request within 1 business day.

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

Start Planning Now for the FY 2022 H-1B Visa Lottery

The FY 2022 H-1B visa lottery process requires thorough review and careful planning to ensure success. Foreign national talent with exceptional skills and experience are highly coveted for key positions by many prospective US employers. Specific jobs often filled by employees on H-1B visa sponsorship include information technology specialists, engineers, and scientists.

What are the Changes for the FY 2022 H-1B Visa Lottery?

The United States Citizenship and Immigration Services (USCIS) is expected to follow several of the new processes put in place for the most recent FY 2021 lottery. However, USCIS has not announced the date when the official process will open. For FY 2021, prospective petitioners could create accounts starting on February 24, 2020. A similar pre-petition account creation date is likely to be communicated for this year’s process.

The Department of Homeland Security (DHS) has also proposed a change in how USCIS selects registrations for filing of cap-subject H-1B petitions. The change will result in:

  1. USCIS first selecting registrations based on the highest prevailing wage level
  2. Wage level ranking would apply to the regular cap
  3. The ranking would also apply to the advanced degree exemption

This proposed change follows a previous Department of Labor (DOL) restructuring of the prevailing wage system for foreign national talent. The DOL instituted an Interim Final Rule (IFR) called “Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States.” The DOL wage system restructuring was meant to reduce program abuses that appeared to undermine wages and opportunities for US workers. However, later rulings have resulted in legal challenges and court orders to set aside the DOL’s IRF. The DOL noted it is taking steps to comply with court orders.

An additional factor that may result in changes is the inauguration of the next US President on January 20, 2021. With a new administration, a new focus on immigration is likely to change processes for the FY 2022 H-1B visa lottery process. However, changes will take time. Therefore, the upcoming year’s process may still follow a similar pattern as last year’s process.

Review of the Most Recently Defined H-1B Visa Lottery Processes

It is difficult to determine just how many changes there might be to the FY 2022 H-1B visa lottery process from the January 20 inauguration date to the lottery’s potential start date. However, a review of the FY 2021 H-1B visa lottery process will provide some insight into the most recently defined requirements.

Starting in FY 2021, petitioners had to submit an electronic registration. USCIS noted the registration should make visa processing more streamlined. It should also reduce excess paperwork and costs. Petitioners pay a registration fee and then only pay the visa lottery fee if the process successfully chooses their registration for processing.

Registration Expected for the FY 2022 H-1B Visa Lottery Process

The FY 2021 H-1B electronic registration process followed these simple steps:

  • Petitioners could create accounts starting on February 24
  • Petitioners input limited company data and information about the foreign national talent into the online registration portal
  • Registration fee of $10 applies to each entry
  • USCIS opened the initial registration period on March 1
  • A random selection process for H-1B visas on the registrations then chooses entries eligible to submit petitions
  • Fee is $10 and applies to all registrations submitted during the initial and future periods

Lottery Expected for the FY 2022 H-1B Visa Lottery Process

The FY 2021 H-1B visa lottery process followed this pattern:

  1. The first lottery included all petitions and was subject to the 65,000 cap limit
  2. Following the first lottery, the rest of the petitions are then eligible for the 20,000 visas reserved for applicants with advanced degrees from US educational institutions

DHS noted the lottery process was expected to actually increase the number of H-1B visa holders with a master’s or higher degree from a U.S. institution of higher education to be selected for further processing.

What Should Employers do about the FY 2022 H-1B Visa Lottery?

HR teams should fully prepare in order to submit electronic registrations on the date USCIS opens the portal. They should also review hiring plans and identify all necessary documentation. As a result, this will help ensure both the registration process and the petitioner process move along as quickly as possible. Employers should work with a Relocation Management Company (RMC) that has extensive experience in visa processing. RMCs will have knowledge and expertise that will help ensure a smooth FY 2022 H-1B visa lottery process. As a result, petitioners will have a much greater likelihood of success in hiring skilled foreign national talent.

Where Should Employers Begin?

Global Mobility Solutions’ team of global relocation experts can help your company with the FY 2022 H-1B visa lottery process. Our team’s knowledge and access to visa and immigration resources leads the relocation industry. We have helped thousands of companies understand how to successfully navigate the H-1B visa lottery process and mitigate talent shortages with global relocation.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients prepare for the H-1B visa lottery. Our team can help your company understand how to prepare, register, and submit petitions in the FY 2022 H-1B visa lottery for the greatest chance of successful results.

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 your FY 2022 H-1B visa lottery plans, 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
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.

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Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Visas and International Travel

Canada Immigration Alternatives in Response to Proclamation 10014

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US employers looking to hire foreign nationals but limited by Proclamation 10014 might consider Canada immigration alternatives. By leveraging “nearshoring,” employers can use a unique and creative temporary solution. Countries near the US often have immigration policies that are less restrictive than those of Proclamation 10014.

What are Canada 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 Canada immigration alternatives.

What is Proclamation 10014?

On April 22, 2020, the Trump Administration unveiled Proclamation 10014. The proclamation is sometimes 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.” Additionally, as of June 22 this proclamation is subject to continuance through December 31, 2020. These proclamations serve to limit entry of foreign nationals under several classes of immigration visas, including:

  • 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

These classes of immigration visas include several that are in wide use among technology industry companies such as Google, Apple, Facebook, Salesforce, and Twitter. Google alone is responsible for over 6,500 applications for H-1B visas in 2019. In theory, Proclamation 10014 should drive these companies to hire workers that are already in the US. However, Canada immigration alternatives might provide another avenue for highly skilled foreign nationals.

What are Canada Immigration Alternatives?

US employers with foreign national employees may be able to use Canada immigration alternatives that will bring/keep the employee close to the US. For employers that can meet the requisite criteria, a number of benefits may accrue, including:

The ease of immigration into Canada versus the US makes Canada immigration alternatives a particularly viable option for US employers.

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 Canada, the primary immigration category for temporary expatriates is covered by an Intra-Company Transfer (ICT) Work Permit. ICTs are designed specifically for foreign nationals who are temporarily transferred by their employer to an affiliate office in Canada for a temporary work assignment. A major benefit of the ICT is that it does not require a Labor Market Impact Assessment.

Our Canada Work Authorization Summary Sheet notes three key criteria:

  • Employee must meet minimum education and/or experience requirements in order to qualify as either a Specialized Knowledge Worker or a Manager
  • Must be transferred to a branch, subsidiary, or affiliate of the current employer
  • Employee must have worked continuously for the current employer at least one year in the preceding 3 years in a position similar to the Canadian position

Canada immigration alternatives such as the ICT are initially valid for 1-2 years, but may be extended:

  • Up to 5 years for a Specialized Knowledge Worker
  • Up to 7 years for a Manager

What Should US Employers do About Canada Immigration Alternatives?

Because of the specific requirements in the immigration process, we recommend US employers contact us before taking action. There are several important points for employers to note. For example, Canada has strict limits on allowable activities for business visitors. Also, any criminal history may render a foreigner as inadmissible to Canada depending on the nature of the infraction and length of time passed. A thorough legal analysis will determine if this is applicable. Consultation with an expert from Global Mobility Partners, LLC, will help US employers to develop effective plans and solutions for Canada 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 Canada 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. 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 Canada 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
Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends

Totalization Agreements Help Employers Avoid Paying Duplicate Social Security Taxes

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A confident business woman in the City of London holding a cup of coffee and a tablet device

Totalization Agreements between the United States and other countries help employers avoid paying duplicate social security taxes. But how can such a situation arise? First, ask these questions:

  • Are you a U.S. employer with operations in other foreign countries?
  • Are you sending your employees to work temporarily across borders?

If the answer is yes to these questions, your company and its employees may benefit from bilateral social security agreements. These are agreements that the U.S. has concluded with certain other countries to address social security taxes. As a result, these agreements are usually called Totalization Agreements, and they eliminate dual country social security taxation.

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. Erika agreed to share her expert guidance on this issue.

What are Bilateral Social Security Totalization Agreements – and Who is Covered?

Sending employees to work on a temporary assignment outside of the U.S. can trigger social security taxation in the other country in addition to income taxation. The employer and employee will likely have social security tax liabilities in both the home and host country on the same earnings causing double taxation. The U.S. has entered into Totalization Agreements with several countries designed to eliminate the double taxation that can occur with respect to social security taxes.

How Does an Employer Apply for Relief Under U.S. Totalization Agreements?

While both employer and employee are responsible for reporting income and remitting social security taxes in both home and host countries, there is relief for double taxation for social security taxes. If the U.S. has a Totalization Agreement with the country your employee is working in, the company can apply for a “Certificate of Coverage” from the United States Social Security Administration.

The Certificate of Coverage serves as evidence that the employee temporarily working in another country meets the requirements of a Totalization Agreement shared by both countries. As a result, it allows both the company and the individual to be exempt from paying social security taxes in the country where they are working.

How long is a Certificate of Coverage Good For?

Once a Certificate of Coverage has been issued, it is good for the length of the assignment. It will typically max out at 5 years.

Are There Risks for Non-Compliance?

Yes, there are risks for non-compliance. Similar to the risks associated with not paying income tax, a company and/or individual may face corporate or individual fees, interest and other charges for not being compliant in paying social security taxes.

How Should an Employer Identify Their Specific Risks and Plan Strategically?

Employers should begin to identify their specific risks by planning early in the process. They should also engage with experts that understand Totalization Agreements. GMT can assess whether a Certificate of Coverage is beneficial. This will help employers to plan strategically, and ensure compliance while providing tax savings opportunities.

A thorough review of the assignment details and documents will help unlock opportunities. Applying for a Certificate of Coverage eliminates double taxation of social security taxes. This allows both the employer and employee to remain on the home country social security tax program. As a result, this also minimizes worldwide social security taxes.

What Does an Action Plan for Dealing With Totalization Agreements Consist of?

Employers should identify the employees that are eligible to apply for the Certificate of Coverage. Then, the next step is to submit the application for the Certificate of Coverage with the Social Security Administration. Employers should plan for how they will track the duration of the Certificate of Coverage. A company may need to send an employee to a location where there is no Totalization Agreement in place. In these situations, GMT can provide social security tax cost estimates and other advice. This will help employers to strategize and remain compliant.

GMT can assist employers with tracking employee information, including:

  • Assignment location
  • Duration
  • Certificate of Coverage availability

Employers would have ready access to this information through GMT. It is also used to ensure timely filing and renewal of the Certificate of Coverage, as needed.

GMT has a quick guide in PDF form for employers to help them understand some of the tax issues surrounding Certificates of Coverage and Totalization Agreements. GMT is always ready to help employers learn more about tax compliance and building internal processes to support their mobile workforce, and Erika states that she is available for preliminary consultations.

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 if it can eliminate double taxation for social security taxes through the benefit of Totalization Agreements with the assistance of the experts at 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 Totalization Agreements and Certificates of Coverage, 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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