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Canada Immigration Alternatives in Response to Proclamation 10014

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.

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Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Immigration Rules Job Market Job Seekers Relocation Challenges Talent Mobility United States Economy Visas and International Travel

Administration Limiting Immigration Visas due to High U.S. Unemployment Levels

The Trump administration will be limiting immigration visas in order to protect U.S. workers suffering from job losses during the COVID-19 pandemic. The order also bars groups of foreign workers. Several types of visas fall under the new executive order. The administration believes the new restrictions are necessary to counteract the impact of high unemployment levels.

The Proclamation issued on June 22, 2020, amends the Proclamation 10014 of April 22, 2020 to have an expiration of December 31, 2020. An important point to note in the Proclamation is that it only applies to any alien who, on the effective date of the Proclamation:

  1. is outside of the U.S.
  2. does not have a valid nonimmigrant visa
  3. does not have an official travel document other than a visa that permits travel to the US for entry

The Proclamation also requires three Secretaries to confer and consider any necessary modifications within 30 days of June 24 and every 60 days from then on. The three Secretaries that will review conditions limiting immigration visas are responsible for these U.S. Departments:

  • Homeland Security
  • State
  • Labor

Limiting Immigration Visas: Impact

The new executive order limiting immigration visas will impact several visa categories, including the following:

H-1B Specialty Occupations

H-1B visas are subject to the Trump administration’s skills-based immigration plan. They are also subject to the U.S. Citizenship and Immigration Services new online H-1B visa lottery registration system.

Basic Requirements:

  1. Theoretical and practical application of a body of highly specialized knowledge
  2. Bachelor’s Degree or higher level of education

H-4 Dependent Spouses and Unmarried Children Under 21

H-4 visas are a temporary, nonimmigrant visa for the spouses and unmarried children (under 21 years of age) of H-1B visa holders. In some cases the U.S. has provided work permits for H-4 visa holders that are valid as long as their H-1B visa holding spouse remains H-1B eligible. Visa holders in this category are dependent upon any issue limiting immigration visas for their H-1B visa holding spouse or parent.

Basic Requirements:

  1. Is the spouse (or child) of an H-1B nonimmigrant
  2. The H-1B nonimmigrant spouse:
  3. Must be the principal beneficiary of an approved Form I-140, Immigrant Petition for Alien Workers
  4. Has been granted H-1B status

H-2B Temporary Non-Agricultural Workers

Basic Requirements:

After USCIS approved Form I-129 Petition for a Nonimmigrant Worker, prospective H-2B workers who are outside the U.S. must:

  • Apply for an H-2B visa and then seek admission to the U.S.

or

  • Directly seek admission to the U.S in H-2B classification at a U.S. port of entry in cases where an H-2B visa is not required.

L-1A Intracompany Transferee Executive or Manager

Basic Requirements:

  1. The employee must have been working for one continuous year within the immediately preceding three years prior to U.S. entry
  2. Seeks to enter the U.S. to provide service in an executive or managerial capacity

L-1B Intracompany Transferee Specialized Knowledge

Basic Requirements:

  1. The employee must have been working for one continuous year within the immediately preceding three years prior to U.S. entry
  2. Seeks to enter the U.S. to provide services in a specialized knowledge capacity

Executive Order Limiting Immigration Visas Includes Exchange Visitors

The U.S. Department of State administers the exchange visitors program. The Department also designates the sponsors for exchange visitors. Many of the categories in the exchange visitor program cover students and teachers.

J-1 Exchange Visitors

J-1 classification is for those who intend to participate in an approved program for the purpose of teaching, instructing or lecturing, studying, observing, conducting research, consulting, demonstrating special skills, receiving training, or to receive graduate medical education or training.

Basic Requirements:

  1. Submit a Form DS-2019, Certificate of Eligibility for Exchange Visitor Status to the U.S. Department of State (no blank DS-2019 Forms exist; each is printed with a unique identifier)
  2. Upon obtaining Form DS-2019, apply for a J-1 visa through the U.S. Department of State at a U.S. Embassy or Consulate

What Should Employers do About the Administration Limiting Immigration Visas?

Companies should continue to stay informed about the administration’s interest and activities limiting immigration visas. This new executive order may have a significant impact on an employer’s ability to recruit and hire foreign talent. As a result, knowing what to expect can help companies determine how to leverage strategic resources and respond accordingly to meet corporate objectives.

Companies should also work with a knowledgeable and experienced Relocation Management Company (RMC). RMCs can help companies design a robust talent acquisition program. Also, RMCs can help a company design an industry-leading relocation program that will give them a competitive advantage in the global market for highly skilled employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond effectively to issues regarding travel and immigration. Our team can help your company understand how to develop plans to mitigate the impact of the administration limiting immigration visas.

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 company’s interest in learning more about the Trump administration limiting immigration visas, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Totalization Agreements Help Employers Avoid Paying Duplicate Social Security Taxes

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

Immigration Application Fees May Increase to Cover USCIS Anticipated Shortfall

U.S. Citizenship and Immigration Services (USCIS) is requesting to have a 10% surcharge added to immigration application fees. As a result of the COVID-19 pandemic, USCIS is experiencing a large decline in revenue from processing applications. The agency believes receipts will decline by over 60% through 2020. The U.S. restrictions on immigration due to COVID-19 has dramatically limited the number of applicants. However, USCIS is nearly entirely funded by these fees.

USCIS FY 2019 Final Statistics

For the FY 2019, USCIS breadth of services shows the expansive reach of the agency. Receiving immigration application fees is just one part of the agency’s mission.

Overall, in FY 2019 USCIS:

  • Granted lawful permanent residence to 577,000 individuals
  • Naturalized 834,000 new citizens
  • Received 2.2 million employment authorization applications
  • Approved 500,000 petitions for non-immigrant workers
  • Processed 40 million cases through E-Verify
  • Granted immigration relief to over 25,000 individuals

FY 2019 represents an 11-year high in new oaths of citizenship for the USCIS. However, the number of applications pending for green cards declined by 14%, and the number of applications for naturalizations declined by 12%.

What are Green Cards?

Green Cards, officially known as “Permanent Resident Cards” let the holders live and work in the U.S. on a permanent basis. The process to apply for a Green Card depends on the individual’s specific situation. Eligibility requirements vary based on the application’s submission category.

USCIS notes that most people who apply for a Green Card will need to submit at least two forms, along with the correct immigration application fees. Depending on the situation, the forms may include one or more of the following:

  • I-130 Form, Petition for Alien Relative
  • I-140 Form, Immigrant Petition for Alien Worker
  • I-730 Form, Refugee/Asylee Relative Petition
  • I-589 Form, Application for Asylum and for Withholding of Removal

Other USCIS petitions include:

  • I-360 Form, Petition for Amerasian, Widow(er), or Special Immigrant
  • I-526 Form, Immigrant Petition by Alien Entrepreneur
  • I-918 Form, Petition of U Nonimmigrant Status
  • I-929 Form, Petition for Qualifying Family Member of a U-1 Nonimmigrant

As a result, fees for forms can add up quickly. Adding a 10% surcharge on immigration application fees may increase the total amount of fees significantly, depending on the individual as well as their family members’ situations.

What are the Current Immigration Application Fees?

USCIS has several forms with associated fees depending on the specific applicant need. To apply for naturalization, applicants must submit Form N-400, Application for Naturalization. There is an online portal to help applicants calculate their total fees. Form N-400 fees include a fee for the form itself, and another fee for biometrics. An average Form N-400 fee includes:

Biometrics$85
N-400$640
Total$725

What will the Immigration Application Fees rise to?

If the 10% surcharge is added to immigration application fees, the total cost to file Form N-400 may rise by $72.50 to a total of $797.50 (assuming biometrics fee also rises by 10%). If an employer has several employees impacted by this surcharge, the increase in costs may be significant.

What Does This Mean?

Depending on the form, the 10% surcharge may be as low as $6.50, or as high as $1,779.50. In some cases, these fees may be paid by employers who employ H-1B visa holders. Employers should review the fees for the various forms to understand if the 10% surcharge may cause significant changes to budgets and costs associated with compliance to USCIS requirements.

 What Should Employers do About Immigration Application Fees?

Employers should work with a knowledgeable and experienced Relocation Management Company (RMC). RMCs with experience will be able to help employers understand how to identify costs and other issues that may arise from the USCIS surcharge request.

The RMC will also have knowledge of a number of alternatives that may provide employers with valuable and cost-effective solutions. As a result, employers may be able to mitigate the impact of the 10% surcharge and other issues surrounding immigration as it relates to COVID-19 restrictions.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond effectively to issues regarding the USCIS and immigration. Our team can help your company understand how to plan accordingly for increases in immigration application fees.

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

Contact our experts online to discuss your company’s interest in learning more about how to plan for increases in immigration application fees, 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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Talent Management Talent Mobility

Special Needs Relocation Services: A Compassionate Approach

Many GMS clients have transferees who require special needs relocation services. Sometimes the need is for a family member who will be relocating with the transferee. Other times, the need is for the transferee. Pre-decision services help employers identify specific points so they can provide the appropriate resources and solutions. Often these solutions require a compassionate approach, to help the transferee and their family members have peace of mind for the relocation.

GMS spoke with Ann Hinch, International Destination Service Manager at Go Destination Services who agreed to share her knowledge and expertise on this topic.

Three Situations that Require Special Needs Relocation Services

Relocating a transferee often requires attention to the needs of their immediate family members as well. In some cases, there may be special needs relocation services. According to Ann, there are three types of situations requiring a compassionate approach:

  • Providing information and options for elder care
  • Education options for children with special needs
  • Home-finding for transferees moving with an assistance animal

Elder Care

A Pew Research Center survey in 2018 found that 14 percent of older adults living in someone else’s household were the parents of the head(s) of that household, up from just 7 percent in 1995. Transferees moving with an aging parent may ask for special attention to the type of accommodations in the home they will need to rent or purchase. They may want to know about elder care services in their destination city, including:

  • Senior centers
  • Medical resources
  • Home health care
  • Veterans Affairs (VA) hospitals, offices, care homes

Options Available

If a transferee is seeking separate housing for an elderly or special-needs adult family member, there are a number of options available, depending on the destination area’s resources. Nursing homes provide an intensive level of medical and personal care around the clock. However, assisted living communities allow residents more of a measure of independence. Independent-living communities are geared for those who can take care of themselves but may require meal preparation, housekeeping, laundry, or transportation services.

Ann notes that it is recommended that those caring for elder and special-needs family members research and visit these specialized facilities ahead of placement. Medicare’s Nursing Home Compare aggregates care quality data for every Medicare- and Medicaid-certified nursing home in the United States. Nursing Home Inspect, run by independent journalism site ProPublica, uses data from the U.S. Centers for Medicare and Medicaid Services. The site provides an unbiased database of nursing homes across the country.

Children with Special Needs Relocation Services

According to the U.S. Department of Education’s National Center for Education Statistics, in May 2019 14 percent of students under age 21 in U.S. public schools received special education services. Connecting families with districts that serve special-needs children may start with a state’s Department of Education website. Alternatively, it may begin with calling the office for that agency to learn about special-needs schools and programs in the destination city.

Ann believes that another valuable lead is social media. For instance, a parent can join and follow a Facebook group for a school they have an interest in. This way, they can see what other families have to say about the special-needs programs and learning environment.

Research Tools

There are non-government online research tools valuable for helping narrow the field of learning institutions to contact in a given region. Two such tools are Public School Review and Private School Review. Both offer a categorical search of many fields of requirement, including special-needs education. Each school includes data such as rankings, opportunity for comments by parents, contact information, tuition, and much more. Another helpful research tool is Niche.

According to Ann, GO’s best resource for local schools and other special needs relocation services program information is their database of talented area consultants in destination cities. GO’s in-house research team also frequently supplements the area consultants’ efforts. Ann shared that sometimes GO is asked to provide research that affects a relocation decision. For example, a recent request came from a couple who were considering relocating from China to New Jersey. Their son had special needs, and GO was tasked by the father’s employer to compile a list of public and private schools with relevant programming. This research greatly aided the family in deciding to accept the employer’s relocation offer to the U.S.

Assistance Animals

Since domesticating dogs thousands of years ago, humans have valued them and many other animals for companionship and protection. Some domesticated animals have special training to provide service or assistance. This could include helping someone who has limited vision, or monitoring and alerting someone to the onset of seizures.

In Ann’s research, she has found that the U.S. Department of Housing and Urban Development defines an assistance animal as one that “works, provides assistance, or performs tasks for the benefit of a person with a disability, or that provides emotional support that alleviates one or more identified effects of a person’s disability.” Assistance animals are not classified as pets when it comes to seeking most types of rental housing, though there are some exemptions for single-family homes rented without an agent and owner-occupied buildings with four or fewer units. Also, breed and weight restrictions do not apply.

Fair Housing Act

The Fair Housing Act requires housing providers to allow reasonable accommodation for assistance animals if the request to have the animal is supported by reliable documentation for the disability and meets other requirements – such as that having the animal would not pose a direct threat to the health or safety of others, or would not result in significant physical damage to property. “Reasonable accommodation” also means providers must waive pet fees, though a pet deposit may still apply.

In booking a hotel or temporary accommodations for a transferee with a service dog, the Americans with Disabilities Act states any such person must be provided the same opportunity to reserve any room as other guests. It is important to note for purposes of the ADA that “service dogs” and “assistance animals” are separate categories. Therefore, it is a good idea to consult a hotel or other public accommodation ahead of arrival. Be sure to inquire about documentation for any animal that is not a service dog.

What Should Employers Do About Special Needs Relocation Services?

Employers should leverage pre-decision services to help identify any special needs relocation services their transferee may need. A Relocation Management Company (RMC) with knowledge and experience will help employers understand how to provide a compassionate approach to address specific transferee needs. As a result, transferees and their family members will have peace of mind. Their relocation process will also be smooth and successful.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to identify if transferees require any special needs relocation services through our robust pre-decision services. As a result, our team can help your company understand how to identify specific points of concern. In turn, this will help your company provide the appropriate resources and solutions.

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 special needs relocation services, 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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Travel Guidance: Staying Ahead of the Curve

In the midst of urgent travel guidance from the United States, federal agencies, and other nations, employers should practice due diligence in assisting their employees on assignment. The U.S. Department of State has issued a Global Level 4 Health Advisory: Do Not Travel. Even within the United States, additional travel restrictions are arising. For example, the state of Texas has implemented travel restrictions on those who want to enter the state. Several other locations may be considering local restrictions. Many US cities have “shelter-in-place” mandates aiming to protect citizens most at risk during the COVID-19 pandemic.

Employees on Assignment During Travel Guidance

Worldwide ERC® reports that over 13,500 US citizens have requested assistance from the State Department to return to the United States. Such assistance is becoming extremely challenging as airlines reduce their number of flights, and other nations close their borders to travel. Major regions such as the European Union are developing plans to restrict non-essential travel from other countries.

For employers that have employees on assignment in other nations, support and communication are critical. It is possible that some employees may need to remain in place for an extended period of time. Employers should be sure to inform employees on all aspects of their situation. They should also provide as much support as possible, so the employees and their family members can have peace of mind.

Relocation Management Company Resources for Global Assignees

Relocation Management Companies (RMCs) have a wealth of knowledge, experience, and resources to provide assistance for global assignees. GMS recently shared information with its clients to cover many of the issues surrounding travel guidance and how to provide support for global assignees.

Important Points for Employers to Consider for Global Assignees Include:

  • Extending temporary housing for those employees on global assignment who need extra time to determine how to repatriate to their country of origin
  • Extending relocation benefits to allow for more than one year
  • Many clients have initiated a global assignment but are asking their employees to work at the home location for the time being. Clients need to be thoughtful about how this may impact visa and taxation issues. GMS recommends clients consult their tax and immigration provider for support
  • Approving additional tenancy management, home maintenance, and grocery delivery when necessary
  • Since almost all business travel has been restricted, restrict all home leave trips for global assignments as well
  • Due to travel guidance restrictions, offer virtual services such as destination support and settling in services, immigration assessments, and visa country spotlights

What Does This Mean?

During the COVID-19 pandemic, travel guidance is constantly changing. Employers may have global assignees impacted in several ways by various restrictions, border closures, and reduced means of transport. As a result, employers should work to ensure continual and up-to-date communications with employees on global assignment. They should also consider revising several aspects of their relocation and travel policies to ensure employees receive as much support as possible as they try to navigate changing travel guidance, restrictions, and closures.

What Should Employers Do About Travel Guidance?

Employers with global assignees impacted by travel guidance, restrictions on movement, and other issues impacting their mobility should speak with an experienced and knowledgeable RMC. RMCs with established local presences and vast networks of top providers offer valuable insight into how best to communicate issues and resolve difficult situations. They can also provide the necessary resources and support for employees and their family members. Experienced RMCs will be able to offer technology and resources directly, locally, and even virtually as each individual situation requires.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond to changing travel guidance, border closures, and other issues and restrictions affecting global workforce mobility. Our team can help your company understand how to assist global assignees with virtually any relocation issue. As a result, this will help them and their family members have peace of mind, and be able to focus on their assignments.

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 how our company can help your global assignees during times of continually changing travel guidance and other restrictions, 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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Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends United States Economy

Vehicle Program for Foreign Nationals Relocating to the United States

Global Mobility Solutions’ clients often have transferees relocating to the United States who can use a vehicle program to obtain a car. Arriving from outside the country, foreign nationals quickly realize they need a vehicle after their arrival. Many international locations have extensive public transportation options. Most US cities lack extensive inter-city rail options, and often do not have robust local bus or light rail service throughout the metropolitan area, so transferees need a car.

A significant hurdle these transferees face is that they often do not have established credit in the US. As a result, they will not have a credit profile that lenders can use to determine their creditworthiness.

GMS spoke with Afia Arneja, Senior Vice President, International AutoSource (IAS). Afia agreed to share her expert guidance on this topic.

Challenges of Getting a Car in the US for International Assignees

According to Afia, many transferees moving to the US are not prepared for the challenges they will face when it comes to getting a car. Having a solution for their transportation is low on their list of priorities. However, upon arrival, these transferees suddenly understand the urgency of having a vehicle in this country with its large cities and wide suburban areas.

Biggest Obstacles That a Vehicle Program Helps Transferees Overcome

1: Lack of Credit History

Afia notes that many transferees are unaware that their overseas credit history doesn’t transfer with them to the US. If they are new to the US they will have to establish a credit history to obtain a loan for a new car. Some banks or financial institutions may offer a solution, but that comes at a cost in high-interest rates. These high rates are how these institutions offset their credit risk with the transferee.   IAS recognized this issue very early on. Serving the transferee community for over 20 years, IAS built unique programs by leveraging their manufacturer relationships. IAS also provides finance and lease options for transferees. These options are much more reasonable than those offered by banks and financial institutions.

2: No Access to International Driver History and Records

Similar to credit history, driving records do not transfer to the US. Unfortunately for transferees, Afia says this means that most insurance companies will consider transferees as new drivers. As a result, these insurance companies will charge them a premium for auto insurance. IAS is a full-service vehicle program provider that has partnerships with leading auto insurance companies to solve this problem for their customers. As a result, IAS can provide reasonable auto insurance rates with no penalties for not having a US driving history.

3: Confusing Car Buying Options Compared to Easy to Use and Easy to Understand IAS Vehicle Program

Upon arrival in the US, transferees are exposed to many car-buying solutions. Navigating through the overwhelming number of dealers and buying services that promise the “best deal” can be daunting.   Afia notes that IAS created a vehicle program to protect transferees from overpaying for their automobile. IAS has pre-negotiated prices with manufacturers that provide factory-direct access and cut out the middleman. Without having to work through a dealer, transferees receive competitive prices and avoid all the hassles of negotiation.

4: Driving Options

Transferees need to identify the right solution for their transportation needs. Afia believes this starts with determining the length of stay in the US. Many transferees need expert guidance to help them find the right option for their situation. The IAS vehicle program provides products that fit any situation.

For assignments less than 12 months, ReadyDrive Rental is a long-term rental program that offers competitive rates. Often these rates are lower than most corporate rates available with insurance coverage included.

For 2-3 year assignments, there are lease products available. These products take the hassle of selling the car at the end of the job out of the equation. Financing options are also available for those planning to stay longer than 3 years.

Important Points to Note on Working with IAS to Obtain a Vehicle for a Foreign National

  1. IAS does not require a local credit history to help transferees obtain a vehicle. However, an important point to note is that buying or leasing a vehicle is extremely helpful for a foreign national to start building credit in the US.
  2. IAS is able to connect with partners to obtain competitive insurance rates for the transferee. Of particular importance is that IAS can do this even if the transferee does not have a local driving record.

What Does This Vehicle Program Solution Mean?

Foreign national transferees who want to obtain a car in the US have multiple solutions with the IAS vehicle program. Even if the transferee does not have credit in the US or a local driving record, IAS can provide a solution for their needs. Solutions might include buying, leasing, or renting a vehicle.

What Should Employers do About a Vehicle Program?

Employers with foreign national transferees who want a vehicle in the US should review the various options offered through the IAS vehicle program. Relocation Management Companies with knowledge and experience can provide guidance on industry-leading solutions such as those offered by IAS. Employers should also review their relocation policies to determine if enhancements are necessary. Adjustments to policies can be made to further assist foreign national transferees who want to use the IAS vehicle program.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to communicate to foreign national transferees any issues related to obtaining a vehicle in the US. Our team can help your company understand how to proceed by providing guidance on how to help transferees obtain a car through the IAS vehicle program.

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 company’s need to help foreign national transferees learn about the IAS vehicle program in the US, or give us a call at 800.617.1904 or 480.922.0700 today.

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Business Services Global Relocation Challenges Global Relocation Tips Relocation Challenges Visas and International Travel

Business Faux Pas: Top 5 Tips to Cultivate Good Global Relationships

Global Mobility Solutions’ clients know that business faux pas can inhibit the development of a mutually beneficial relationship. Some customs that are completely acceptable in one country may not be acceptable in other countries. As a result, even the smallest gesture might not give a positive reflection. There are many ways to avoid these scenarios. Companies should provide resources and training for employees to help them learn how to cultivate good global relationships.

Top Emerging International Markets for Global Relocation

Many companies actively seek the top emerging international markets for investment. Companies focused on growth have a number of paths to choose as they look into global expansion. These choices may include some of the following:

  1. Business travel
  2. Short term assignments
  3. Work with a local partner
  4. Utilize services of International Professional Employer Organizations (PEO)
  5. Establish a local presence

Companies that are planning to use one or more of these paths should follow specific tips to avoid business faux pas. Careful research and investigation will help ensure good global relationships.

Top 5 Tips to Avoid Business Faux Pas

1. Research information about the location

GMS provides a number of valuable information resources for our clients. Global and Domestic Spotlights highlight information about culture, education, cost of living, climate, and many other points. Each of the spotlights provides information that can be used to learn more about important points for business contacts.

MyRelocation® Video Spotlights provide visual insights into a destination. Viewers can easily identify points of interest. They can also see the type of location, whether large city, suburban town, or small city located in the countryside. As a result, each of these locations will help the viewer understand how best to approach contacts in those areas.

In-depth research on a specific location can provide important points. For example, the city of Los Angeles recently enacted new regulations that may impact clients in various ways, and could certainly lead to business faux pas. This kind of research can also be provided with customized requests focused on specific locations and topics.

2. Get to know your contact

Many companies and their employees have robust pages on Linkedin. This social networking platform has risen in importance as a place where business people communicate with each other on relevant topics. Groups may be formed that are specific to interests such as Quality Auditing or Content Marketing. A contact’s participation in a group may provide helpful information on topics of importance to them.

Professional Organizations may have information about members. For example, the Arizona Department of Real Estate includes information on all licensees and brokers. Visitors to the website can search within the Department’s Public Database on topics related to licensing, education, development services, and compliance.

3. Ask questions to avoid business faux pas

Within your company or other professional contacts, do you know others who have visited the location? If yes, they may provide good information about the location, customs, and people. The more these contacts share with you, the better your chances are for creating a positive experience and avoiding business faux pas.

Do you or others in your circles know specific contacts at the location? Perhaps a supplier may have a facility located there. It may be helpful to reach out to these contacts and ask questions about their lives and experiences. Inquire as to what these contacts enjoy doing in their spare time, and what tips they can share about the local culture.

As you plan your travel, the places you stay may be able to provide valuable input for your visit. Contact local housing providers and ask if they have information about the location they can share. If you will be staying at a hotel, often the concierge is a source of valuable local information.

4. Review the business

Diligent research on businesses and contacts should include reviewing any publications such as the company’s annual reports, press releases, websites, and social media pages. Much of the contact that is shared can provide good insight into what is important for the company. It may also provide a number of talking points that can help open doors and leave an impression that you care about the company and their issues, needs, and goals.

Many business journals publish articles about companies. While not all of these articles are authorized, they may still provide helpful information. Some business journals to review include the Financial Times, The Wall Street Journal, Crain’s Chicago Business, and The Economic Times. Keep in mind that referencing an unauthorized article about a company to your local contact would indeed be a business faux pas.

5. Attend cultural training to learn how to avoid business faux pas

A virtual trainer for culture allows employees to access training anytime, anywhere. Cultural training modules include several topics in helpful settings, such as:

  • Personal training via webcam in one-on-one sessions
  • Trainers help employees learn how to view cultural differences to promote synergy
  • Guidance to operate in business settings includes practical and actionable points
  • Skill-sets found in other cultures are leveraged to help the employee learn more
  • Values such as mutual respect and understanding are shared and reinforced

Cultural training can be critically important as businesses pursue growth in countries that may be quite different from their own. For example, China’s culture includes a unique concept called “good guanxi.“ In China, the primary focus in business is relationships, not tasks. As a result, companies seeking to do business in China should learn the best ways to build business networks with good guanxi. This will go a long way toward avoiding any business faux pas.

What Should Companies do About Business Faux Pas?

Companies should work with a qualified Relocation Management Company (RMC) that has extensive experience in helping companies understand global issues. The RMC will help them understand how to research information about locations and companies. Additionally, the RMC will help the company learn how best to prepare for global expansion, whether through direct staffing efforts with global assignments or with the use of an International PEO.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients learn how to avoid business faux pas, with a goal of cultivating good global relationships. Our team can help your company understand how to research locations, people, and companies. We can also help your company learn how to leverage cultural training modules for employees to promote successful global business development.

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

Learn more about how your company can avoid business faux pas and cultivate good global relationships. 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.

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Global Relocation Tips Global Relocation Trends Visas and International Travel

Brexit Financial Industry Impacts May Change Global Market Dynamics

European Union (EU) authorities are looking to change rules that may result in Brexit financial industry impacts for international banks. As a result, the financial rulebook known as MiFID II could be up for amendments that would negatively impact the United Kingdom (UK).

What is MiFID II?

MiFID II is reform legislation governing the financial industry. It came into being following the 2007-8 financial crisis. The EU’s purpose with MiFID II was to regulate financial markets in the trading bloc, and enhance protections for investors, thus restoring confidence.

MiFID II includes policies governing the following:

  • Commodities Trading
  • Derivatives Trading
  • Futures Trading
  • Record Keeping
  • Research Spending
  • Stock Trading

What Would Brexit Financial Industry Impacts Mean for International Banks?

Several Brexit financial industry impacts would alter how international banks interact with the EU and the UK. These impacts include:

  1. Financial services firms based in London must depend on an equivalence process to gain access to the EU
  2. The equivalence process will require the UK to prove to the EU that its rules post-Brexit are at least as strong as the EU’s
  3. The EU could unilaterally decide to exclude UK firms
  4. Equivalence process allows the EU to unilaterally change the requirements for equivalence

Should the EU choose to amend the MiFID II or alter the equivalence process, these changes will affect industry transactions. International banks with locations in the UK will face Brexit financial industry impacts that might:

  1. Halt adoption of open access, a provision meant to increase the competition in derivatives markets
  2. Remove the requirement that money managers pay separately for investment research and trading services
  3. Prevent large financial firms from providing research at low prices considered harmful to competitors

What Does This Mean?

Brexit financial industry impacts may be more far-reaching than initially thought. Since London is currently the largest financial market in Europe, other market areas in the EU may look to alter rules to help them gain business and increase their industry presence. As a result, financial services firms in the UK may soon face significant hurdles with respect to transactions in the EU.

What should Employers do About the Brexit Financial Industry impacts?

Employers in the UK should review their preparations for various Brexit scenarios that may arise in the negotiation phase. The Brexit Bill does not include all of the specific provisions that directly apply to financial industry points of concern. Issues covering these points may be determined during subsequent negotiations between the UK and the EU during 2020.

The UK has published several valuable resources with Brexit guidance for business. Companies should be sure to review the UK’s guidance to ensure they prepare accordingly. The UK has set up a portal to share information on the new rules for living, working, travelling, and doing business in the US and EU starting in January 21.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond to changing industry and international requirements. As a result, our team can help your company understand how various Brexit financial industry impacts may alter your need for relocating UK and EU workers.

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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to determine how Brexit financial industry impacts may affect your relocation program, 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 Challenges Talent Mobility Visas and International Travel

Asia Relocation Trends: What Does the Future Hold?

As global economics combine with geo-political forces, Asia relocation trends reflect changing business priorities. Past trends led China to become a major destination for manufacturing, jobs, and relocation. However, recent trends show multinational companies are moving production outside of China. The US-China trade war is often cited anecdotally as a reason for this shift, and there is some evidence to support this claim.

The US-China trade war is only part of the reason for changes in Asia relocation trends. Economic factors in China such as rising costs as well as shifts in company market shares also impact talent mobility. Changing demographics also impact how companies might pursue global expansion. These forces lead companies to find new locations for manufacturing facilities in Asia.

Asia Relocation Beyond China

There are several countries, regions, and zones seen as viable alternatives to China for manufacturing and operating facilities. Several of these countries are members of the Association of Southeast Asian Nations (ASEAN), consisting of ten members:

  1. Brunei
  2. Cambodia
  3. Indonesia
  4. Laos
  5. Malaysia
  6. Myanmar
  7. The Philippines
  8. Singapore
  9. Thailand
  10. Vietnam

Spotlight on Malaysia: Asia Relocation Trends

Kuala Lumpur is the national capital and largest city in Malaysia. The city of Putrajaya is the seat of the federal government. Malaysia has an estimated population of over 30 million people. The country is multi-ethnic and multi-cultural. Approximately 50% of the population is ethnically Malay, and there are large segments of Chinese, Indian, and native populations.

Malaysia Economy and Growth Supports Asia Relocation Trends

Malaysia is a relatively open state-oriented and industrialized market economy. The country has a strong economic record, with Gross Domestic Product (GDP) rising on average 6.5% from 1957-2005 on an annual basis. Malaysia’s economy in 2014–2015 was one of the most competitive in Asia, ranking 6th in Asia and 20th in the world.

In 2014, Malaysia’s economy grew 6%, the second highest growth in ASEAN behind the Philippines’ growth of 6.1%. The economy of Malaysia in terms of gross domestic product (GDP) in April 2019 was estimated to be $999.397 billion, the third largest in ASEAN and the 25th largest in the world. Malaysia is projected to achieve high-income country status by 2024.

Overview: Kuala Lumpur Industrial Sector

Most of Kuala Lumpur’s industrial sector consists of facilities that are comparatively small in size. Larger facilities are located outside of the city, due to the high cost of land and buildings. Costs are often significant drivers of Asia relocation trends. Manufacturing constitutes about two thirds of the city’s industrial establishments, with service industries accounting for the other one thirds.

Kuala Lumpur Manufacturing Industries include:

  • Foundries
  • Metal and fabricated metal products
  • Paper and paper products
  • Plastics and plastic manufacturing
  • Printing and publishing

Kuala Lumpur Service Industries include:

  • Motor vehicle repairs
  • Storage facilities
  • Warehouses

City Plans: Become an International Commercial and Financial Center

Kuala Lumpur has a vision to become a world-class city. To do this, the city is focusing on the knowledge economy, and this will affect Asia relocation trends. As a result, Kuala Lumpur is investing in new technologies, examining building and infrastructure requirements, and developing a highly skilled labor force. Training facilities are noted as available in the Technology Park Malaysia, and other educational venues such as the German-Malaysian Institute. Overall, Kuala Lumpur remains highly competitive in terms of costs as compared to nearby cities such as Singapore and Hong Kong. The city has been following the Kuala Lumpur Structure Plan 2020, and the economy has grown significantly, benefiting from Asia relocation trends.

What Does This Mean?

Kuala Lumpur is one of many dynamic and successful cities in Asia competing for investment, jobs, and technology. As these cities compete with each other, many are investing in the necessary infrastructure to attract knowledge economy firms. Also, skills training and education for the local workforce are increasing. Cities are also focusing on design and amenities to attract workers and firms that will help transform their economies.

What Should Employers Do About Asia Relocation Trends?

Employers pursuing global expansion plans should review Asia relocation trends. Several ASEAN countries may have positive economic aspects and desirable locations for a variety of operations, including manufacturing and services. Cities such as Kuala Lumpur are actively pursuing investments within the knowledge economy. Nations in Asia are increasingly becoming viable alternatives to China for corporate expansion.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to determine a number of optimal locations for global corporate expansion. Our team can help your company understand how to leverage Asia relocation trends to support corporate growth initiatives.

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 Asia relocation trends, 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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