Category: Global Relocation Trends

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

Zoom Town Options for International Relocation

City metro area at night
Singapore skyline at night.

Check Out These Countries That Offer Relocation Incentives

Countless companies are continuing to allow their teams to work remotely. These changes have primarily been due to the COVID-19 pandemic and the resulting shift in corporate culture. Working remotely from home has become a new normal for numerous industries. It has gotten to the point where “home” can be somewhere new almost every year. Employees are relocating to where they are most comfortable for their personal life as they no longer need to report to a physical office on a daily basis. Because of this, many cities and provinces are seeing an influx of new workers (and new taxpayers) as their populations grow.

What Are Zoom Towns?

A Zoom Town can be loosely defined as a town or province seeing an increase in population due to remote employees opting to move in. The phrase was coined from the broadly popular corporate movement to allow people to work remotely during the pandemic and the meteoric rise of “Zoom” as the virtual meeting platform of choice. 

 

Due to this phenomenon, various local and regional governments around the globe are getting creative in their competition for new wage earners. It has gotten to the point where these destinations are offering relocation incentives to remote workers considering a move within their borders. Many of these towns are looking to revitalize and compete by growing their population and gaining more working professionals. 

 

Now that people are accustomed to working remotely, many are looking into international relocation. There are Zoom Towns in other countries, some offering lucrative relocation incentives. If you’re looking to relocate internationally within the next year, here are some of the fastest-growing Zoom Towns abroad:

Switzerland

The village of Alibnen in the mountains of Switzerland is offering a rich relocation incentive. The town will shell out USD 25,200 to newcomers. On top of that, the Swiss government will give USD 10,000 per child that relocates with the family. Of course, there is some fine print for this great incentive. First off, applicants have to be under the age of 45. The property purchased in Alibnen has to be a permanent home, not a secondary residence. Also, the property has to hold a minimum value of 200,000 francs (about USD 201,600).

Italy

When many people think about Italy, they think about gorgeous landscapes and delicious food. This is why it is a popular destination for remote workers researching international relocation destinations. If you are considering Italy, it is worth looking at the town of Candela. This small town is offering grants of €800 euros per person and up to €2,000 for couples with children. Applicants of the grant can also take advantage of tax breaks. The only major requirement for this program is that the relocating workers have to live in Candela full-time, rent a house, and have a job with a minimum yearly salary of €7,500.

Greece

Another example of a creative incentive program is the Greek island of Antikythera. The program is closed as of the time of this article, but the island of Antikythera was trying hard to boost and revitalize it’s population number of 50 residents by offering relocation incentives. Those willing to relocate there could apply to receive housing, land, and an allowance of 500 euros a month for the three years from the Greek Orthodox Church, approximately USD 20,000 in incentives. 

 

Fortunately, Antikythera’s incentives worked! The island has seen an influx of young families and is now home to a climate research center.

Croatia

Legrad is a small town in northern Croatia that is looking to increase its population of just over 2,000 residents. In doing so, anyone looking to relocate to Legrad can bid on a house starting at just $0.16 (1 kuna). While an entire home for only 16 cents sounds great, there is a drawback. There are a limited number of homes in the town that can be purchased at the incentive price. However, there is good news – the mayor of Legrad pledged up to $3,979 (25,000 kuna) towards any refurbishments that newcomers would like to make to their houses. 

GMS Can Help with International Relocation

Global Mobility Solutions (GMS) is the industry leader in the corporate mobility market. Since 1987 we have been helping companies relocate their employees both domestically and internationally. Our relocation-specialized team stays up-to-date on all the government-provided relocation incentives offered in various cities, states/provinces, and countries. 


Our team also can help with any visa and immigration questions you may have when it comes to moving an employee to a new destination. You can contact us today with any questions or book a free consultation with one of our experienced consultants who can provide you with a courtesy review of your current relocation program and provide feedback on how to maintain a competitive talent mobility program.

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
Employee Development Global Relocation Global Relocation Tips Global Relocation Trends Visas and International Travel

2023 H-1B Registration Details

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

Get more details on H-1B Cap registration

Looking to file a new H-1B case? With some updated guidelines, employers must complete registrations using the U.S. Citizenship and Immigration Services (USCIS) online H-1B registration system. This online process is a simple way to complete H-1B registrations, where employers submit details for their desired candidates who they intend to sponsor for a new H-1B in 2022 or 2023. The online form avoids manual paperwork and can cut down on costs for employers. The cost for registration is $10 per sponsored candidate.

New H-1B case registrations are capped at an annual quota of 85,000. From that number, 20,000 are available to candidates who have earned an advanced degree from a U.S. college or university, making the remaining 65,000 available for other qualified candidates.

USCIS introduced the concept of H-1B registration in 2020. There were just over 380,000 registrations filed for FY 2022 and about 275,000 registrations filed for FY 2021.

H-1B Lottery

When USCIS receives more than 85,000 registration cases, a random lottery will be run on the pool of registrations. Once the lottery is finalized, USCIS notifies those chosen. From there, successful selectors then file a full H-1B petition. One for each candidate must be filled out.

Cap-subject petitioners looking to get H-1B, or their representatives, will be able to create accounts starting at noon Eastern on Feb. 21, 2022. Candidate submissions open March 1, 2022, for any company that is set up in the system. 

It is highly anticipated that USCIS will receive more than 85,000 registrations by the March 18th, 2022 deadline, from there they will plan to run a lottery then notify successful registrants by March 31, 2022.

H-1B cap-subject petitions include those for beneficiaries eligible for the advanced degree exemption. Only those with a valid registration number selected during the H-1B registration process may petition.

GMS Can Help with Any Visa & Immigration Needs

Global Mobility Solutions is a full-fledged international relocation services company. Our goal is to help companies get their employees to their new destinations as easily as possible. GMS works with the most knowledgeable people in the industry when it comes to visa and immigration needs. We can help your employees get all of their paperwork done and questions answered. Feel free to reach out to us today to get started the process of fulfilling all your global mobility needs.

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
Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Relocation Policy Review Relocation Programs

Relocation Policy Review: Anticipating Changes and Challenges

Shot of a group of colleagues having a meeting in a modern office

Why Companies should review their Relocation Policies?

It is important, and highly recommended, that companies review their relocation policies at the start of each year. This will help your company remain at the forefront of your industry, ahead of your competitors, and in line with best practice recommendations. Most companies are not completely immune to global forces, market changes, and unique challenges such as the COVID-19 global pandemic. Often these issues directly impact employees on international assignments.

There are several reasons why companies need relocation benefits. Often, relocation perks are used for hiring a recruit for an open position. Other times, companies may use relocation to transfer knowable employees to different job sites or as part of a development program offered through the company when promoting an existing employee. But no matter the reason, all sizes of company who offer talent mobility should have their relocation policies reviewed with some regularity. Here is a breakdown of why relocation policy review is important:

 

Address Strategic Objectives in Your Relocation Policy Review

Growing companies often have strategic plans that guide activities and investments. Many of these plans lay out specific goals and actions. For example, a company that wants to grow into a new market might leverage their relocation policy review in several ways to achieve this goal. This may include investigating the services of an International Professional Employer Organization (PEO). PEOs can help a company establish a presence in a new market within a very short timeframe and with no direct investment. As a result, companies can focus on achieving strategic objectives and responding nimbly to market changes. In return, the company saves time, effort, and resources. Also, the overall costs of service fees and financing international employees’ payroll are significantly lower than the cost of establishing a foreign entity.

Cost Reductions and Process Improvements Can Be Found

Relocation Management Companies (RMCs) with extensive industry knowledge and experience can help identify cost reductions. There may be several areas that offer cost reduction opportunities during a relocation policy review. Also, the mobility industry often changes rapidly in response to needs, preferences, and regulations. As a result, knowledgeable RMCs can easily identify and share new ideas for cost reductions.

RMCs are often drivers in the mobility industry for process improvements. Technology can lead to dramatic increases in productivity. For example, a Relocation API can replace many time-consuming data entry tasks and responsibilities. In turn, valuable resources are freed up to focus on critical business and department issues.

Maintaining Your Company’s Competitive Market Position

Every relocation policy review should include and reference benchmarking studies. These studies should show what your company’s industry competitors are providing in their policies. Your company should have information to know whether its relocation policy provides benefits that at least match the competition. A thorough relocation policy review can help identify areas that need to change in order to maintain your organization’s competitive position.

Ensures Company Policy Remains Compliant

National and international regulations can frequently change. Constant changes in visa requirements, immigration, tax laws, health recommendations, and other regulations directly impact relocation programs and employees. Conducting a relocation policy review helps your company learn what is changing, what may change in the future, and how to adjust your relocation policy accordingly. The review also provides information that your company can share with internal company stakeholders and employees who utilize the policy.

When Should Relocation Benefits Be Reviewed?

Companies should arrange a relocation policy review about every 12 months. As markets and global dynamic forces change at an ever faster pace, transferees are often some of the first employees to face direct impacts. As a result, the company’s relocation policy should be current and provide industry-leading solutions. This will result in greater employee satisfaction, and enhance talent acquisition and retention efforts.

GMS’ team of global relocation experts has helped thousands of our clients with their relocation policy review. Our mobility consulting team understands the dynamic nature of the corporate relocation market. GMS provides expert guidance for relocation policies, as a result, our team ensures that our clients’ transferees receive immediate assistance as required, clients remain competitive, their relocation programs maximize efficiencies, and they can leverage several cost reduction opportunities.

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.

To schedule your relocation policy review or to receive an industry-specific policy benchmarking overview, 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
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.

Categories
Domestic Relocation Challenges Domestic Relocation Trends Global Relocation Trends Relocation Best Practices

Housing Market Headaches Now Hurting Rental Market

Nice apartment complex pictured in sunshine
Exterior view of modern apartment building offering luxury rental units in Silicon Valley; Redwood City, San Francisco bay area, California

The fierce real estate market is now having an impact on renters as well

The past year or so has been a trying time for would-be homeowners. Some of the quickest rising prices in history along with a shrinking number of options made it difficult for many hopeful buyers who didn’t have enough cash in hand to pay on the spot. As prices start to come back to reality and a bit more inventory has hit the markets, home buyers might start to see some relief. 

 

While homebuyers are beginning to benefit from a stabilizing market, renters are dealing with similar challenges their home-owning counterparts have dealt with. Market experts predict that rent prices trends will continue to rise over the next year. 

 

There are three main factors that are likely to contribute to rental prices rising over the next year:

1) The Return to “Normal"

It might not be the “old normal,” but people all over the country seem to be grasping the concept of the “new normal” with work from home being an option for many jobs. Many companies hope to get their office buildings reopened after the latest COVID-19 variant has slowed down, while other companies will remain working from homes permanently. But what these two points have in common, despite being complete opposites, is that they both contribute to the rising number of renters seeking housing in the larger metro areas, which in many states will create competition. Nationally, market data shows rent prices are already 8% higher than they were last year. This has created three interesting renter markets:
  1. Those returning to offices who like to be in the metro area (typically where most major corporate offices are located) to be close to their office and public transportation. 
  2. Renters that are working from home who like to live in metro areas for nightlife and social activities.
  3. People who work remotely permanently can choose to live where they want because there is no need to live within the same region as their corporate offices.

2) Hot Real Estate Market Driving Increased Rental Need

The second factor creating more renting competition is how the hot housing market trends of 2020-2021 have changed the mindset of some buyers. With such sky-high prices to purchase a home, many buyers dropped out of their purchase searches and signed leases to rent. Many are doing to “wait out the market” in the hopes of a cooler market in the future. These prospective “homebuyers turned renters” have placed additional pressure on rental demand. Until these future home buyers stop renting to continue their search, renter numbers will stay higher than usual.

3) Wage Increases & Renewed Confidence

The third factor for predicting a rise in rent prices is wage increases across the country. Additionally, as restrictions end around the world, many younger workers are moving to for job opportunities in growing economies. Many states are raising the minimum wage and large companies like Amazon and Costco are willing to pay more in order to fill positions that were vacated during the pandemic. Landlords see rising wages and increased demand for their properties as a reason to upcharge on rent prices, especially in desirable and high-demand markets.

Trying to Keep Up in Hot Renter’s Market

With rising rent prices and increased competition to get into rental units, what can renters do to secure an apartment? First and foremost it is important to be open, honest, and in clear communication with significant others or roommates. Rental units come and go quickly, so the key here is to be ready when a property becomes available. 

 

It is also equally important to have finances in order. Most rental properties will require some sort of security deposit down to even start the move-in process. Try to have enough cash stored away for deposits in order to move quickly. Landlords will usually always ask for proof of income from potential renters, so try to keep the two most recent pay stubs handy when applying for apartments, single-family homes, and other rental units. When budgeting, it is best practice to have the amount of first month’s rent and any renters insurance coverage ready to go. 

 

Cleaning up credit history, if possible, is another great way to outshine other renters. Applicants with the strongest financial background will oftentimes be considered first when units become available. 

 

One last tip, reference letters can be helpful too. Asking a past or current landlord to write a letter stating the excellence of the family or individuals renting can go a long way in the application process with the owner or manager of the newly desired rental spot.

What This Means for Those Looking to Relocate

It can seem like a no-win situation for individuals or families looking to move as it is currently difficult to buy a home and is becoming more expensive to rent a house or apartment. 

 

If relocating for a job opportunity, it would be a good idea to take advantage of any relocation packages the company may offer. In many cases, relocation benefits offer corporate housing options for short-term stays where the mover and their family can stay for a few months while getting settled. This period of time provides the employee with some breathing room and valuable time to find the right place to live within their budgetary and lifestyle requirements.

 

In the event that the company doesn’t offer relocation benefits, there is a chance that the state the transferee is heading to does. Many states and cities are offering government subsidized relocation incentives to draw talent to improve their workforce. A good number of these incentives have rent benefits that movers can capitalize on. 

 

Global Mobility Solutions has been helping organizations with their relocation programs for over 34 years, even in the toughest real estate markets. There are ways around the tight market and high rent prices. Reach out today for more info on how GMS can provide the tools to develop a competitive relocation program.

What's happening in your industry? Request a Courtesy Benchmark report

At GMS, we make it a priority to know how talent mobility is changing in each major industry. What are the best practices? How are other companies changing their programs to retain a competitive edge? Your Mobility Pro will be in touch within 1 business day to help answer your questions and benchmark your industry.

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

Canada Citizenship Path to Expand for Foreign Residents

In an effort to encourage foreign temporary residents to stay, the Canada citizenship path will expand to make it easier for them to become a permanent resident. Currently there are over one million temporary residents in Canada. However, the COVID-19 pandemic has reduced the number of immigrants entering the country.

Canada migration consists of both permanent and temporary residents. Net immigration statistics show the impact of the pandemic:

 2019 (annual)2020 (1st 6 months)
Temporary Residents+190,952-18,221
Permanent Residents+252,000 est.+128,430

Canada is seeking to add immigrants at an aggressive rate, with a goal of adding over 1 million immigrants by the end of 2021. The country’s plan for immigration includes the following:

2019350,000
2020360,000
2021370,000

Canada’s plan includes immigration relating to several factors:

  • Federal economic and provincial/territorial nominees
  • Those eligible for family reunification programs
  • Refugees

Why is Expanding the Canada Citizenship Path Important?

Canada is relying on immigrants to power its economy and counteract the long-term demographic impact of an aging population. Currently, Canada’s population is less than 37 million residents. Of these residents, nearly 20 percent are immigrants. The country is exceptionally welcoming to immigrants, with Prime Minister Trudeau publicly noting “Diversity is our strength #WelcomeToCanada.”

Canada is considered underpopulated, and as a result often has more jobs than workers. Immigration is key to helping the Canadian economy grow. The country’s population rate of growth for 2020 is only 0.89%, the lowest rate for the past several years. Expanding the Canada citizenship path will hopefully increase the population growth rate.

Programs to Draw Immigrants to Canada

The country has instituted many unique programs to draw immigrants. One immigration pilot initiative seeks to attract highly skilled immigrations to smaller cities and towns in the province of Ontario. Another initiative focuses on attracting students and youth of Hong Kong with a new open work permit and a broader Canada citizenship path. Criteria will include one year of work experience in Canada, and a minimum level of language proficiency and education. The new open work permit allows young people in Hong Kong to come to and hopefully stay in Canada while they gain work experience.

Among large industrialized countries, Canada has one of the lowest populations, ranking at #39. By comparison, countries including the US, UK, China, India, Germany, Mexico, France, Italy, and Spain all have much higher populations than Canada. The country’s best hope to keep residents in the face of the continuing pandemic is to expand the Canada citizenship path for its temporary residents.

What Does This Mean?

Canada’s immigration ministry is working to identify a new Canada citizenship path for the country’s temporary workers. It is also looking to expand opportunities to draw immigrants to Canada. The country’s economic growth depends on a steady supply of highly skilled workers. Also, increasing immigration will lessen the impact of an aging population on the country’s social services budgets.

What Should Employers Expect with an Expanding Canada Citizenship Path?

Employers in Canada should expect to see an increase in the number of immigrants seeking to leverage the expanding Canada citizenship path. With nearly twenty percent of the country comprised of immigrants, the atmosphere is welcoming and supportive. Employers should also expect to see a rise in job seekers utilizing the open work permit program.

Employers not currently in Canada should look into the country as a strategic location for future corporate expansion. The services of an International Professional Employer Organization (PEO) may be useful in this respect. International PEOs can help employers enter new markets quickly and determine the prospect for their future success.

What should Employers do as the Canada Citizenship Path Expands?

Work with a Qualified Relocation Management Company

Employers in Canada should review their talent acquisition program to ensure it aligns with a growing number of immigrants in their workforce. They should also work with a qualified Relocation Management Company (RMC). RMCs can help employers review their relocation and visa programs with a goal of encouraging highly skilled immigrants to choose their job opportunities.

Investigate the Services of an International Professional Employer Organization

Employers outside of Canada should consider utilizing the services of an International PEO. By working with an International PEO, companies can increase their international employment in Canada quickly and easily. RMCs can provide expert assistance to employers looking to expand their corporate presence through the services of an International PEO.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees. Our team can help your company determine how to benefit from an expanding Canada citizenship path.

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 how your company can benefit from an expanding Canada citizenship path, 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

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

2020 Inbound Immigration to the United States: Where are the Workers Coming From?

indian students in a class room

The U.S. Department of Homeland Security (DHS) reports that 2020 inbound immigration for the Fiscal Year (FY) First Quarter saw over 117,000 foreign nationals enter as new arrivals. This number is the same as the FY 2019 First Quarter figure.

Table 1B in the report shows 6,839 new arrivals in the employment-based preferences category. This total is further delineated by several employment-based classes, including:

First: Priority workers 493
Second: Professionals with advanced degrees, exceptional ability 1010
Third: Skilled workers, professionals, and unskilled workers 3537
Fourth: Certain special immigrants 589
Fifth: Employment creation (investors) 1210

The U.S. Department of Labor (DOL) issues labor certifications for both permanent and temporary employment of foreign workers under several programs:

  • Permanent Labor Certification
  • H-1B Specialty (Professional) Workers
  • H-2A Temporary Labor Certification (Seasonal Agricultural)
  • H-2B Temporary Labor Certification (Non-agricultural)
  • D-1 Crewmembers Certification

Foreign workers hired under these programs represent a portion of the new arrivals for employment-based preferences in the 2020 inbound immigration figures reported by DHS.

2020 Inbound Immigration: Countries of Origin

New arrivals in the employment-based preferences are part of the category of “Lawful Permanent Residents.” DHS notes that thirty-seven percent of new lawful permanent residents arrived from six top countries of origin:

  • Mexico
  • People’s Republic of China
  • Vietnam
  • The Dominican Republic
  • India
  • The Philippines

According to the Migration Policy Institute (MPI), immigrants from Vietnam usually arrive to the U.S. through family reunification, not through employment channels. The same holds true for immigrants from the Dominican Republic.

By comparison, MPI notes that Chinese nationals received the second-largest number of H-1B visas in FY 2018, after Indian nationals. For Indian nationals, MPI reports that nearly half of the immigrants from India obtained lawful permanent residence through employer sponsorship.

2020 Inbound Immigration to the U.S. from India: Where are the Employment Centers?

The top 5 states where more than half of the 2020 inbound immigration from India reside are:

  • California
  • New Jersey
  • Texas
  • New York
  • Illinois

The top 4 counties that serve as destinations for 2020 inbound immigration from India are:

  • Santa Clara County, California
  • Middlesex County, New Jersey
  • Cook County, Illinois
  • Alameda County, California

The two counties in California comprise the bulk of Silicon Valley. Cities in Santa Clara County include San Jose, Mountain View, and Palo Alto. Alameda County includes the Bay Area cities and towns across the bay from San Francisco: Berkeley, Oakland, Hayward, Fremont, and Pleasanton.

Middlesex County in New Jersey includes the cities and towns of Edison, Woodbridge Township, New Brunswick, Sayreville, and South Amboy. This county is known for its long history of innovation.

Cook County in Illinois includes the cities and towns of Chicago (a high-tech hub), Evanston, Schaumburg, Des Plaines, Oak Lawn, Orland Park, and Elk Grove Village. Chicago is the third largest city in the nation.

According to MPI, immigrants from India have a much higher educational attainment compared to other immigrants and the U.S. population as a whole. This is due to how they enter the U.S.: either as international students, or as H-1B visa workers at jobs requiring a university degree. For FY 2016, immigrants from India accounted for 74% of the H-1B visa petitions (both initial and continuing employment) approved by the U.S. Citizens and Immigration Services (USCIS).

New National Education Policy in India Focuses on Technology

India’s Union cabinet has proposed significant changes to the country’s national education policy. The goal is to align education to the requirements of today’s workforce and employer needs. The policy recommends that education include teaching coding in school from the sixth standard onward. Ultimately, the policy aims to impart mathematical thinking and an interest in scientific topics in students. This trend has impacted 2020 inbound immigration from India.

The national education policy is being revamped to further align with India’s Sustainable Development Goals (SDGs). The SDGs were adopted by United Nations member countries in 2015 to serve as a call to action to eliminate poverty, protect natural resources, and bring prosperity and peace to all by the year 2030. SDGs aim to transform the world and strengthen universal peace.

What Does 2020 Inbound Immigration Mean for Employers?

Employers should learn about the current immigration trends and how they might impact their future ability to hire foreign nationals. While India has seen much success as the nation works to reach their SDGs, many other nations are also investing in education.

Also, several nations are pursuing significant educational reforms, including:

  • Mexico
  • Pakistan
  • Papua New Guinea
  • Poland
  • Vietnam

This may lead to greater competition from foreign nationals of these nations for immigration to the U.S. and the many opportunities this presents to them and their family members.

Where Can Your Company Get Help to Leverage 2020 Inbound Immigration?

Global Mobility Solutions has a team of global relocation experts who can help your company understand how to leverage immigration trends to benefit your talent acquisition and relocation programs. Our team’s knowledge and access to visa and immigration resources is unparalleled in the industry. We have helped thousands of companies navigate the U.S. visa program and H-1B visa lottery process reach successful results.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients understand how to attract and hire the best candidates for job openings. Our team can help your company learn how to leverage visa programs and other creative solutions to hire foreign nationals. As a result, your company will have greater success with corporate objectives and be able to benefit from 2020 inbound immigration.

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.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn more about how your company can benefit from the 2020 inbound immigration to the U.S., or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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
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.

Accessibility by WAH

Looking for something?