Tag: North America Relocation

STATE TAX COMPLIANCE ISSUES TO CONSIDER WITH REMOTE WORKING POLICIES

Post author By Sam Hoey | CRP, GMS
Post date August 11, 2020

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.

Tags 2020 USA Job Market, Cities Add Jobs, Companies Creating Jobs, Domestic Relocation Trends, employee relocation, global relocation, jobs, Low Unemployment, North America Relocation, Work From Anywhere Policies, Workforce Mobility, workforce mobility management, Working From Home

Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Home Purchase Household Goods Relocation Best Practices Relocation Challenges Relocation Management Talent Mobility

Summer Move on Tap? Start Planning Now

Post author By Nancy Kritzer | CRP
Post date May 7, 2020

African descent family moving into a new home. Mother, father and daughter. Real estate sign. Home in background. Spring or summer season.

Many relocating employees choose a summer move over any other time of the year. However, several factors make this time of the year the busiest for relocation. As a result, the household goods (HHG) moving industry is often running at nearly full capacity to meet demanding schedules.

The current COVID-19 pandemic presents a significant number of additional considerations. However, transferees who plan ahead and learn basic guidelines for safe HHG moves can expect a smooth summer move.

Factors That Result in Preferences for a Summer Move

1. School Breaks

Families with children prefer to stay in place during the school year. The vast majority of school years follow certain patterns, with holiday or seasonal breaks. The months of June, July, and August are traditionally times when schools are not in session. This includes colleges as well, where students are often on the move back home once they have taken their last final exam. By planning a summer move, schoolwork is less likely to face any disruptions.

2. Weather Patterns

In much of the United States, the months of May through September offer warm temperatures, grounds covered with grass, and a number of bright sunny days. In comparison, other months offer less than ideal weather conditions. Snow and ice make travel difficult, streets and sidewalks may be muddy, and days may be gray with sleet and snow showers.

3. Common Beliefs and Practices

Many home buyers and sellers believe the best seasons for real estate transactions are spring and summer. Although other seasons offer a number of benefits, a summer move is often the result of a busy spring and summer home buying and selling season.

How to Plan Ahead for Your Summer Move

Companies that are planning to relocate employees should be aware of several important points that can make for a smooth and easy summer move. Communication is important to ensure that every relocating employee has a good experience. Employees who have a good experience in their relocation process will arrive at the destination ready to start their new job.

Top 4 Points to Ensure a Smooth Summer Move

1. Engage your Relocation Management Company (RMC) as Early as Possible

Employers looking to arrange an employee transfer or a new hire that will be relocating, early notification to the RMC is best. A best practice is to integrate all of the company’s pre-decision services directly with the RMC. This will help ensure the RMC has visibility for any upcoming summer move, and initial planning can quickly proceed.

2. Leverage Multiple Bids to Obtain the Lowest Costs

With HHG moving demand at its peak, RMCs should provide multiple bids for a summer move. However, this requires companies to provide enough time for the RMC to obtain these bids. The last week of June is the busiest week for moves. Companies that do not provide enough time for the RMC to obtain competitive bids may miss out on substantially lower costs for the summer move. In general, RMCs who obtain multiple bids for a summer move can save companies over $1,500 per move.

3. Providing a Range of Dates is Better Than a Specific Date

As with many things in life, the ability to be flexible works well for planning a summer move. HHG moving companies appreciate flexibility for their scheduling needs. Transferees also have many other things to take care of related to their relocation. Relocating employees who can provide a range of dates for pickup and delivery are often likely to have their household goods picked up and delivered on their preferred date or the nearest alternative date.

4. When Time is of the Essence, Services Can be Provided at Additional Cost

Some situations require an employee to be on site in a new location by a specific date. Critical delivery dates may arise due to home sale closings, expiring leases, and company requirements. These situations may require services that cost extra, above and beyond the traditional summer move cost. Companies that need a transferee to be on site in a new location by a certain date should provide enough time for the employee to make the move.

NOTE: Transferees that are given very short notice for a summer move often face significant issues in terms of cost to move and space for their household goods on moving company vans and trucks. Late requests for space may result in a moving company providing space but only for a specific size such as 10,000 pounds of goods. As a result, transferees with 2,500 pounds of household goods may have no other option but to pay for the extra unused space in order to meet the deadline set by their company. Best practice is to provide a quote that covers only the space needed for the transferee’s household goods. This way, they transferee is not paying extra for space they cannot use.

What Should Employers do About a Summer Move?

Employers should contact their RMC as early in the relocation process as possible. Best practice is to work with the RMC for pre-decision services. To ensure this engagement starts as early as possible, employers should create an Application Programming Interface, or relocation API.

An API provides a framework for different computer systems to communicate and share information. Employers with a relocation API will have their internal Human Resource Information System (HRIS) integrated with their RMC’s relocation technology. RMCs with industry-leading relocation technology solutions have designed their platforms to quickly and easily integrate with each client’s HRIS.

Employers should work with a qualified and experienced Relocation Management Company (RMC) that can provide guidance and insight as to best practices for obtaining multiple bids and arranging for a summer move. RMCs can help clients and transferees understand how to communicate important dates and other information relating to their summer move with HHG moving companies.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to leverage the multiple bid process to save on a summer move. Our team can help your company follow industry best practices to communicate early, incorporate flexibility, and understand all of the various options that are available for relocating employees facing a summer move.

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

We're Here to Help! Request a Courtesy Consultation

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

Post author By Tamara Molino | CRP, GMS
Post date April 23, 2020

Happy man receiving keys for his new car in a showroom.

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

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.
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.

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.

Tags global mobility, global relocation, Global Relocation Tips, jobs, North America Relocation, Relocating Employees, United States, US Economy, Vehicle Program, Visa and Immigration Rules, Workforce Mobility, World Cultures and Customs

Buy a Home Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Home Purchase Job Market Job Seekers Labor Force Talent Mobility United States Economy

Choose Topeka Incentives Aim to Draw New Residents to Kansas

Post author By Sam Hoey | CRP, GMS
Post date February 6, 2020

The Kansas state capitol building is located in downtown Topeka on land donated by the Atchison, Topeka and Santa Fe Railroad company. Construction began in 1866 and was officially completed 37 years later in 1903 at a total cost of just over 3.2 million dollars. The building is over 300 feet tall and is 17 feet taller than the U.S. Capitol building in Washington D.C.

Choose Topeka is a new incentive program that will draw new residents to Topeka and Shawnee County, Kansas. The program begins in 2020 with a public launch and full promotion. The incentives are performance based. As a result, new residents will become eligible after residing in the community for one year.

The program arose from a partnership between GO Topeka and local Topeka businesses. Over the past year, organizers have been working to develop the program and marketing materials to reach a wide audience. GO Topeka focuses on creating economic opportunities and growing the local business climate. The Joint Economic Development Organization has an agreement for services with GO Topeka. Both organizations are working together on the Choose Topeka incentive program.

What are the Eligibility Requirements for Choose Topeka?

The Choose Topeka incentive program is to help draw employees to work at local businesses. Therefore, the eligibility requirements center on meeting the needs of local employers and full-time positions:

Participants must be eligible to work in the US
Program requires participants to move to Topeka for a full-time position
Employers must participate in the program for participants to receive matching funds
Participants must purchase or rent a home in Shawnee County within a year of their hire and move to the area

What are the Benefits for Participants in Choose Topeka?

The benefits for participants in Choose Topeka are generous, and apply to both the participant as well as to the employer.

Participant Benefits

Up to $15,000 in funds in Year 1

Renting: $10,000
Home Purchase: $15,000

Source of funds: GO Topeka/Joint Economic Development Organization (JEDO) and Employer, match at 50%

Employer Benefits

Employer fully funds $10,000 up to $15,000 with employee transfer
After Year 1, GO Topeka/JEDO reimburse up to $5,000 ($10K) or $7,500 ($15K) to employer for employee retention

The Choose Topeka incentives are based on performance. Employees must move to the community and reside for at least one full year before becoming eligible. Only primary residences are eligible for the incentives. The incentives may be used for all expenses related to moving.

What is the Goal of Choose Topeka?

The goal of Choose Topeka is to draw up to 60 new residents and their families to the city. Employers will gain new workers with requisite skills. Also, several industries will receive economic benefits as the new residents move in and purchase locally.

GO Topeka estimates the total local economic impact of the Choose Topeka incentives to be:

Over $2.14 million/Year 1
Up to $11.38 million/By Year 5

What Should Employers do About Choose Topeka?

Companies in Topeka and the surrounding Shawnee County area that have growth initiatives may be able to leverage the Choose Topeka incentives in their talent acquisition and relocation programs. Companies should examine their plans for corporate expansion. They should also consider participating in the Choose Topeka incentive program to gain the matching funds provided by GO Topeka/JEDO.

Many other US locations offer similar moving incentives. As a result, companies should leverage GO Topeka’s 2020 marketing and promotional efforts for the Choose Topeka incentive program into their employee recruitment efforts.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to leverage moving incentives such as those in the new Choose Topeka program to attract and retain talent. Our team can help your company by using industry best practices to design your relocation program. This will increase your company’s ability to hire and retain new employees.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your company’s interest in learning how it can leverage the Choose Topeka moving incentives to attract and retain talent, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Buy a Home Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Home Purchase United States Economy

Winter Home Sellers More Likely to Find Serious Buyers

Post author By Jules Matz | AHWD, ABR, CNE, CRP, GRI
Post date January 6, 2020

When it comes to the best season for home sales, winter home sellers are more likely to find serious buyers. Most people commonly believe spring is the most ideal season for home sales. As a result, sellers often wait until spring arrives to consider listing their home for sale.

Home sales during summer and fall lead to a reduction in market inventory. Sellers who wait for spring to place their home on the market further reduce the number of homes for sale in the winter months. As a result, winter home sellers gain a clear advantage. Less homes on the market allows their home to have greater visibility among serious buyers.

5 Specific Advantages for Winter Home Sellers

Beyond less competition from other homes, there are 5 specific advantages for winter home sellers:

1. Buyers in winter are serious buyers

Many people enjoy winter for its snow-filled beauty and wide range of outdoor sports such as ice skating, skiing, and sledding. However the season is also known for several major holidays, unpredictable and sometimes caution-producing weather, travel, and year-end work commitments. Only serious buyers would be looking for a home during this season. Buyers who make an appointment to see your home are not window shopping for homes as spring buyers often do. Rather, they are specifically interested in your home and its amenities. Winter home sellers can be assured that buyers truly want to purchase in the near term. Many times these serious buyers are relocating to take a new job or transferring to a new location with their current company.

2. Days on the market are less of a concern to serious buyers

Some home buyers use the number of days a home is on the market as an indicator. This indicator could mean any of several things, such as:

Condition of the home and property is not comparable
Location of the home is not desirable
Pricing compared to other homes on the market is not consistent
Seller does not have motivation to sell or is hard to work with

However, days on market is less concerning to serious buyers in winter. For example, winter home sellers whose home has been on the market since fall may benefit from buyer’s interest in working with sellers who are fully intending to sell.

3. Realistic decisions on pricing are easier to make during winter

Winter home sellers have an advantage when listing their home. Comparable homes on the market since the summer and fall seasons provide an excellent guide for realistic pricing. These home sellers often have adjusted their pricing to be consistent with or slightly below recent sales. This in turn will help them attract the right buyers looking for homes like theirs. Realistic pricing decisions for winter home sellers are easy to make by reviewing comparable homes.

4. Sellers who need to buy face less competition as they search for their new home

While buyers are searching for homes, winter home sellers gain from having less inventory for their home to compete with. At the same time, if those sellers need to buy a home, they also benefit from having less buyers to compete with. Sellers who must also buy have an advantage since winter holds down excess competition from other buyers. If they are the only ones looking at a specific home, chances are good that their offer will be taken seriously.

5. Spring season is just around the corner, just in case more buyers are needed

Some winter home sellers may not sell their home before spring arrives. The arrival of spring usually brings many more buyers into the market, including more families with children who want to plan moves during the summer. More buyers coming into the market means there will be more views of the home listing and perhaps more visits to the home. Winter home sellers may be seen as especially motivated to sell. As a result, homes should be freshened for the new season, and pricing should be reviewed to determine if it is still comparable or if adjustments must be made.

What Should Winter Home Sellers do?

Winter home sellers should consider placing their home on the market. Those who are able to do so benefit from serious buyers, less competition, and the ability to have their home ready to sell early in spring if they have not yet sold. Something to keep in mind is that a few markets exhibit stronger buying patterns during the winter season. Scottsdale, Arizona winter home sellers often experience the best home sale outcome by listing their home for sale in January.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients and their transferees with real estate needs when it comes to relocation. We can help your company understand how to obtain the best advantage for home sales and purchases, whether selling a home during winter as part of a relocation by leveraging the GMS Buyer Value Option (BVO) program, or buying from winter home sellers in a new location.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices for winter home sellers from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. 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

Tags buyer value option, Buyer Value Option Program, Domestic Real Estate, Domestic Relocation, Domestic Relocation Trends, Home Purchase, Home Sales, jobs, North America Relocation, Real Estate, Realtor, Relocating Employees, Relocation Property Assessment, United States Migration Patterns, US Economy, Winter Home Sales, Winter Home Sellers

Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends

What are the 2019 Best States Overall?

Post author By Sam Hoey | CRP, GMS
Post date June 24, 2019

What are the 2019 best states overall? Many factors go into determining this ranking. Some of these factors are important to some people, but not to others. Anyone who travels throughout the United States can clearly see that some states do an outstanding job with their infrastructure. However, a measure such as health care may be of greater concern for some residents.

What are the factors used to create a comparative ranking, and should importance to residents be a weighting factor?

US News & World Report’s 2019 Best States Overall Ranking focuses on eight major ranking categories that cover 71 metrics. Of these eight major categories, the most heavily weighted are health care and education, as these were found to be the most important to people.

Health Care

Access to hospitals, doctors, clinics, and health care resources, as well as affordability, quality of care, and health care results.

Education

Preschool and kindergarten through high school are reviewed. Access to charter schools, educational achievement, and schooling requirements impact this category.

Economy in the 2019 Best States Overall

Several indicators of economic health are part of this category. Number of jobs and job growth, measurements for unemployment and part-time employment, productive output including Gross Domestic Product (GDP) for the state, migration into states, and business startups all contribute to this category’s metrics.

Opportunity

This category specifically covers issues of fairness in 2019 best states overall. For example, fair housing compliance, economic performance versus poverty levels, and equal access to opportunities in jobs, housing, and organizations for all people including minorities, women, people of various ages and ethnicities, and those with disabilities.

Infrastructure Throughout the 2019 Best States Overall

Specific use of renewable energy including solar, wind, and geothermal, as well as the quality of broadband internet access. Rail, air, ocean, and road transportation and the systems that allow movement of people and goods.

Crime & Corrections

This category focuses on rates of violent crimes and property crimes. It also focuses on rates of incarceration across populations, management of prison systems, and overall public safety measures.

Fiscal Stability

Fiscal stability of state governments ensure the success of government-sponsored programs put in place to help residents and provide major services. Public education, pension liabilities, state budgetary measures, cash solvency, and other state-level social and public programs all serve as indicators of a state’s fiscal health. Chamber of Commerce.org presents a summary comparison of each state’s wealth, showing wide disparities between states and across regions.

Quality of Life

Clean water and air directly affect each 2019 best states overall resident’s quality of life. Also, community social support such as access to libraries, social service organizations, and public amenities increase resident quality of life. People tend to be happier and experience greater physical and mental health in areas with higher quality of life.

What are the Top 10 2019 Best States Overall?

While each state’s measurements in the eight major ranking metrics vary, the rankings indicate the following top 10 2019 best states overall:

Washington
New Hampshire
Minnesota
Utah
Vermont
Maryland
Virginia
Massachusetts
Nebraska
Colorado

Destination Spotlights for the 2019 Best States Overall

Want to learn more about the 2019 best states overall? Global Mobility Solutions (GMS) has a wide range of North America destination spotlights that highlight information useful to clients considering relocation programs, and to transferees as they consider assignments in new locations. Our team has published several other destination spotlights including several for Global locations, and you can also Request a Spotlight.

Conclusion

Thoroughly researching a destination to learn about the location, employment statistics, major employers, and cultural highlights is critical to relocation success. The North America relocation experts at Global Mobility Solutions (GMS) have the knowledge and expertise to help your company understand how to review the 2019 best states overall ranking.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Our experts can also help your company determine how the ranking metrics relate to your company’s relocation program and transferee’s needs so you can offer your employees the best relocation experience. Contact our team of experts to discuss your 2019 best states overall relocation destination, or call us at 800.617.1904 or 480.922.0700 today.

Tags 2019 Best States Overall, Colorado, Domestic Relocation, Domestic Relocation Trends, Maryland, Massachusetts, Minnesota, Nebraska, New Hampshire, North America Relocation, Utah, Vermont, Virginia, Washington

Buy a Home Domestic Relocation Domestic Relocation Trends Job Market Job Seekers Talent Mobility United States Economy

United States Migration Patterns: Where are People Moving To?

Post author By Sam Hoey | CRP, GMS
Post date June 3, 2019

United States Migration Patterns: Where are People Moving To?

A recent study by United Van Lines tracking 2018 United States migration patterns shows which states people are moving to. According to the study, the top 5 states experiencing the highest rates of inbound migration are:

Top 5 States Growing due to United States Migration Patterns

Vermont
Oregon
Idaho
Nevada
Arizona

To understand these patterns, it is best to look at a number of local as well as national trends and how these trends impact each state.

Vermont

Vermont benefits from United States migration patterns impacting employment and jobs. This state has a relatively small population compared to other states. Therefore, significant growth in employment is due mostly to people moving to the state to take new jobs or as a transferee within their company. Vermont industries experiencing exceptional growth include:

Renewable and Clean Energy including the highest number of solar jobs per capita in the nation
Tourism and Outdoor Recreation including top destinations for skiing, camping, and hiking
Food Processing including craft beer, cheeses, and maple products
Financial Services and Insurance including #1 ranking in the world for assets under management in captive insurance

Vermont is also well known for its beauty, with mountains, lakes, and four distinct seasons. The state has many pristine areas, and tourism is a significant industry. As a result, retirement is another factor driving United States migration patterns with Vermont as a choice retirement destination.

Oregon

Oregon benefits from United States migration patterns impacting employment and jobs. The state’s economy is one of the fastest-growing in the nation. This is due in part to significant job growth in the manufacturing sector including:

Computer and electronic products
Machinery
Primary metal

Oregon’s landscape includes mountains, lakes, rivers, forests, and waterfalls. The natural areas encourage an outdoor lifestyle, and several state parks are ideally situated for camping, hiking, biking, and boating.

Idaho

Idaho has seen growth from United States migration patterns relating to retirement. More than half of movers into the state were in the age range between 55 an 74 years old. New residents to Idaho gain access to several lifestyle features they could not have in more populated areas, including:

Outstanding National Parks
Mild climate with four seasons
Neighborhood walkability
Low cost of living
Educational and cultural centers

Idaho has a relatively low estimated population of 1,790,000 residents. Comparing Idaho to other states, population density is 19.8 people per square mile versus the national average of 434.9 people per square mile. New York by comparison has 419.0 people per square mile. Idaho is known for wide open spaces.

Nevada

Nevada benefits from United States migration patterns impacting employment and jobs. Most migration to the state is for people to take a new job. The state’s growth industries include:

Tourism including Gaming
Clean Energy Initiatives including Solar, Wind, and Geothermal
Mining including Gold, Silver, and Lithium
Aerospace and Defense including several Air Force Bases
Information Technology powered by a strong Digital Infrastructure

With no income tax, low property taxes, and a warm climate, retirees find Nevada a welcoming place. Around half of movers into the state were in the age range between 55 an 74 years old.

Arizona

Arizona benefits from United States migration patterns relating to retirement. Most of the moves to Arizona were for retirement, followed closely by moves for a new job or as a transferee. There are several reasons people choose Arizona for retirement, including:

Generally pleasant climate
Exceptional natural attractions such as the Grand Canyon
Low cost of living
Greater number of retirees for social groups
Tax-friendly policies

Arizona is increasingly diversifying its economy, with growth in a number of industries including:

Bioscience Research and Development
Technology and Innovation
Manufacturing including High Tech
Aerospace and Defense including top ranking University Programs
Business and Financial Services including Data Centers

According to a new economic report by State Policy Reports, Arizona ranks #3 in the nation for economic momentum. The momentum is based on Arizona’s growth in categories such as population, employment, and personal income.

What Do United States Migration Patterns Mean for Employers?

Employers in the states of Vermont, Oregon, Idaho, Nevada, and Arizona benefit from United States migration patterns that draw a variety of new residents. Growing industries with burgeoning job opportunities tend to generate additional jobs. As a result, communities grow in population and related services are needed such as housing, retail, insurance, and child care. Demand for employees may be strong in these states and many other locations, especially during tight labor markets.

What Should Employers do About United States Migration Patterns?

Employers in locations that benefit from United States migration patterns should review their company’s growth plans and requirements for jobs across all levels of skill sets. A company’s growth plans will impact the number and type of jobs required to meet business plans and goals.

Since the nation is experiencing low unemployment, employers should review their talent acquisition and management programs to ensure they remain competitive to attract and retain new hires and transferees. Relocation Management Companies (RMCs) can provide expert assistance to employers to benchmark their relocation policies and add enhancements that attract talent.

Conclusion

GMS’ team of corporate 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 leverage United States migration patterns for talent acquisition and management.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs. Since United States migration patterns may lead to a growing local population and potential future workforce, be sure your company’s relocation program supports talent acquisition. Give our experts a call at 800.617.1904 or 480.922.0700 today.

Tags 2019 USA Job Market, Arizona, domestic mobility, Domestic Real Estate, Domestic Relocation, Domestic Relocation Trends, Household Goods Movement, Idaho, Nevada, North America Relocation, Oregon, Relocation Household Goods Movement, United States Migration Patterns, Vermont, Workforce Mobility

Home Purchase Relocation Programs

7 Helpful Tips for Transferees to Prepare for a Relocation Property Assessment

Post author By Sam Hoey | CRP, GMS
Post date January 17, 2019

Many of Global Mobility Solutions’ clients have transferees who may be participating in a home sale program as part of their relocation package and will require a Relocation Property Assessment. This Assessment is designed to provide helpful information for the client regarding the home’s condition. While not labeled as a home inspection, the Assessment entails a full review of the home by a professional who is fully qualified to perform the Assessment.

GMS spoke with Mark A. Gronke, Vice President at Fidelity Residential Solutions who agreed to share his advice and guidance on this topic.

How Should a Transferee Prepare for a Relocation Property Assessment?

According to Mark A. Gronke, Fidelity Inspection & Consulting Services provides seven helpful tips and recommendations for transferees to follow. These recommendations will allow the Relocation Property Assessment process to proceed in a quick and efficient manner. Prior to the Assessment, transferees should ensure the following:

Ensure Everything is in Working Order

Check fixtures and lightbulbs to ensure all are in working order.

All utilities must be on for the Assessment, including any pilot lights for natural gas-fed appliances such as water heaters, stoves, and clothes dryers. Check appliances to ensure all are in working order.

Consider servicing all furnaces and air conditioners prior to the Assessment. This will ensure these systems are in working order and may provide a written statement regarding system function.

Compile Records of Repairs

Compile records and evidence for all repairs completed by qualified professionals and technicians. If desired, provide this information to the professional who is conducting the Assessment before it begins.

Provide Clear and Direct Access

Provide clear and direct access to the home’s water heater, air conditioner, furnace, and electrical panels. If you store boxes and other items nearby, move them away so the professional conducting the Relocation Property Assessment can easily reach these areas and appliances.

Ensure the professional conducting the Assessment has three-to-four feet of open space from all garage walls and all foundation walls. This will let them see electrical outlets and the condition of the walls and finishes. Be sure to clear boxes and furniture from storage areas, under any staircases, and crawl spaces. All of these areas should allow clear access during the Assessment.

Remove leaves and snow, and clear away shrubs and brush along the exterior foundation of the home. Any wood piles, trash cans, or bins kept along the side of a home should be moved away from the home’s perimeter.

What Should Employers Expect?

Employers should expect that transferees who may be part of a home sale program understand their responsibilities to ensure clear and direct access to their home for the professional conducting the Assessment. The client for the Relocation Property Assessment is the employer, and they will receive the Assessment from the professional. Employers should understand that the Relocation Property Assessment is not a Home Inspection Report.

What Should Employers do?

Employers should communicate guidance for their transferees on how to prepare for a Relocation Property Assessment. Employers should work with their Relocation Management Company to understand the Assessment and how it relates to the home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Relocation Property Assessments. We can help your company understand how a Relocation Property Assessment relates to your company’s home sale program.

Tags Domestic Relocation, Home Purchase, Home Sales, North America Relocation, relocation programs, Relocation Property Assessment, Workforce Mobility

Buy a Home Global Relocation Global Relocation Challenges Home Purchase Relocation Challenges

Mortgage Loan for Foreign Nationals Relocating to the United States

Post author By Jules Matz | AHWD, ABR, CNE, CRP, GRI
Post date December 18, 2018

Happy family is standing with keys from their new house in hand. Smiling and looking at camera.

Many of Global Mobility Solutions’ clients have transferees relocating to the United States from outside the country. Often, they will need a mortgage loan to buy a home. These transferees may 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 Michael Farner, an expert at Quicken Loans who agreed to share his advice and guidance on this topic.

How Can a Foreign National Obtain a Mortgage to Buy a Home in the US?

According to Michael Farner, if a foreign national has established credit in the US over a period of time long enough to have all three credit bureaus reporting, Quicken Loans would also be able to lend at that time.

Quicken Loans and other mortgage companies have a program to support foreign nationals who are relocating to the US and want to obtain a mortgage, but who have not established credit in the US. The program entails work on the part of Quicken Loans to create a credit profile for the foreign national.

Important Points to Note for Program Eligibility Include:

There must be 0 credit established in the US to qualify for this program. In other words, the foreign national must not have obtained any other credit instrument. Examples may include a loan to buy a car or a credit card in the US.
The foreign national must provide a social security number.

If the foreign national is eligible for the Quicken Loans program, the lender will then build a credit profile for the customer. To do this, the lender may examine the foreign national’s debt in their departure country. This examination will include:

Information on payments for housing, including rent payments, showing 24 months of history for each credit reference.
Information for three other “non-housing” debts that can establish payment histories. Examples may include insurance, utilities, or automobile loans. These debts must also show 24 months of history for each credit reference.

The foreign national may need to assist the lender in obtaining information. The lender may ask the foreign national to participate in a conference call with their departure country’s financial institution.

Once Quicken Loans gathers sufficient information, they will build a credit profile for the foreign national. The credit profile will determine how much they can borrow on a mortgage loan, and the terms of the mortgage.

What are the Features of a Mortgage for a Foreign National?

A mortgage for a transferee who will be relocating to the US is similar to a mortgage for any US-based customer who is seeking to buy a home.

For a foreign national, a mortgage will generally feature the following:

Finances the purchase of an existing home.
Length may be 15 or 30 years.
Interest rate may be fixed or variable.
Foreign national borrower makes principle and interest payments for the life of the mortgage.
Mortgage is often sold to investors in the bond market.

Do Foreign National Transferees Need to Sell Their Current Home Before Applying for a New Mortgage?

Foreign national transferees who are relocating and who currently own a home in their departure country may want to keep their current home. Everyone’s situation is different, and what is possible depends on a number of factors:

Is there a mortgage on the current home in the departure country?
If yes, what is the amount of the current home mortgage?
What are the amount and terms of the mortgage loan for the home in the US?
Can the transferee obtain approval for the total debt load? This would include their current mortgage and the new mortgage loan in the US.

What does this mean?

Foreign national transferees who want to obtain a mortgage in the US to buy a home should review their current financial arrangements with a qualified lender. Transferees who have a mortgage on their current home in their departure country may be able to obtain mortgage for a home in the US. However, this depends on their financial circumstances. Importantly, transferees should understand that they must obtain approval for the total amount of current mortgage debt and the new mortgage loan in the US.

What should employers do?

Employers with foreign national transferees looking to buy a home in the US should direct them to speak with qualified lenders and financial advisors for guidance. Employers should also review their relocation policies to determine if enhancements can be made to allow for exceptions that may arise from foreign national transferees who want to obtain a mortgage in the US.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to communicate to foreign national transferees any issues related to obtaining mortgages to purchase a home in the US. Therefore, our team can help your company understand how best to proceed by providing guidance to foreign national transferees on obtaining information from qualified lenders and financial advisors.

Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand mortgage loans for foreign national relocations. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

Tags Domestic Real Estate, Domestic Relocation, Global Real Estate, global relocation, Home Purchase, mortgage costs, New Home Build, North America Relocation, Real Estate, Relocation Mortgage Costs, Relocation Mortgage Rates, Relocation Mortgage Services

Corporate Relocation Domestic Relocation Global Mobility Relocation Management

What is Employee Relocation or Workforce Mobility?

Post author By Sam Hoey | CRP, GMS
Post date January 2, 2018

Young couple unpacking cardboard boxes at new home.Moving house.

Employee relocation or workforce mobility refers to the processes or relocation services involved in the transfer of employees or potential employees from one location to another. Additional terms that refer to these processes may include:

Employee Transfer
Employee Mobility
Global Mobility
Global Relocation
North America Relocation
Corporate Relocation

Some of these terms may be used interchangeably. However, the terms global relocation and North America relocation may differ in the range of services commonly required for relocating an employee. Reference to global relocation is usually as an umbrella term, and includes North America relocation processes. Reference to North America relocation usually excludes processes commonly needed for international employee relocation such as visa acquisition, repatriation, and language training.

Generally, a company’s management of workforce mobility accounts for ongoing employee support services, supplier management, candidate selection, relocation benefits, and expense management. Corporate relocation programs vary between companies due to size, need, or destination.

The overall process of employee relocation is usually divided into one of four service brackets including:

Pre-decision
Origin Services
Destination Services
Repatriation

Pre-Decision Services:

According to Worldwide ERC data, the average cost to relocate an executive level home-owning employee is approximately $97,000. For this reason, companies seek assurances that an employee is a good fit for relocation. Pre-decision services aim to uncover any potential issues that may arise prior to the employee’s relocation. As a result, these services reduce the risk of a failed relocation. Some of the most common reasons for failed relocations according to Worldwide ERC include:

Negative home equity
Slow real estate housing market
Family resistance to move
Spousal employment
High costs of housing

Examples of a few common pre-decision services include:

Candidate Assessment – Services that assess candidate expectation, skills, personal qualities, family circumstance, and financial preparedness.

Cost of Living Analysis – Cost of living comparison of origin and destination cities to help determine acceptable or competitive salary range.

Market Analysis – Determines the likely home sale timeline and identifies potential home sale challenges such as negative equity.

School Reports – Public and Private School reports provided to the relocating employee to aid community selection.

Moving Cost Estimates – Cost estimates on household goods transportation, helps budget for relocation costs.

Community Search and Tours – Coordinates community orientation tours to familiarize relocating employees to their new location, and assist in selecting an area that fits their particular interests.

Origin Services for Employee Relocation

Origin services account for all services necessary at the transferring employee’s origin location. Some of these services include:

Expense Management – Establishment of expense reporting and management services for both the company and employee. Also, this is designed to track and contain costs during the relocation process. Utilized throughout the entire relocation process*

Home Sale Assistance – May include connecting employees with real estate agents, home marketing assistance, and home buying programs.

Household Goods Management – Management of household goods transport from origin to destination. May include procurement of van line services, replacement insurance, and guaranteed “not to exceed” estimates for goods transportation.

Visa and Immigration Services – For international relocations, visa and immigration services organize company and employee documents required for visa acquisition.

Property Management – For employees not selling their home. May include rental marketing assistance, tenant management, vacant property management, landlord consulting, and property maintenance.

Destination Services for Employee Relocation

Destination services account for all services necessary at the transferring employee’s destination location. The range of destination services sometimes includes a further segmentation of “settling in services.” These services are aimed at helping the employee and their family acclimate to their new location. Some of these services may include:

Home Finding Services – Services include connecting employees with real estate agents at destination, home buying assistance, corporate housing, temporary housing, rental assistance, and home finding tours.

Settling in Services – Services that aid employee acclimation to their new location including access to online resources, attaining local driver’s license, child care, connecting utilities, and locating a primary care physician.

Vehicle Lease or Purchase – Services that assist relocating employees acquire a vehicle including loan support, and lease negotiation.

Family Assistance – Services that assist the relocating employee’s family, including spousal employment support, counseling services, and stress management assistance.

Return or Repatriation Services

In most cases, employee relocation services for individuals returning from temporary North America assignments are equivalent to services provided at departure. While there are some short term North America relocation programs among companies, the majority of return services handle an employee’s return from international assignment. International assignments are usually classified into one of four categories:

Extended Business Travel (EBT): an assignment of 3 months or less.
Short Term: An assignment lasting 6 months to a year (range may go up to 2 years).
Long Term: An assignment lasting 2-3 years.
Permanent: An assignment lasting 3 years or more.

For EBT, short term, and long term assignments, repatriation plans have become an industry recognized necessity for effective employee retention. According to Atlas surveys, around 40% of expatriate employees leave their sponsoring company after assignment. Repatriation services seek to close this gap. They also help organizations maximize their workforce investment. As a result, they retain employees that have acquired substantial knowledge capital. Repatriation is a dynamic service area that has wide variation. For example, repatriation counseling helps employees returning from international assignment manage cultural differences, and re-acclimate to North America life. Additional services may include:

Lease termination assistance
Home services termination (includes utilities)
Tax equalization

Workforce mobility seeks to analyze, manage, execute and optimize the processes involved in transferring an employee from one location to another. For more detailed descriptions of relocation services, please visit the following pages:

Global Relocation
North America Relocation

Conclusion

The corporate relocation experts at Global Mobility Solutions (GMS) have the knowledge and expertise to help your company remain competitive, reduce costs, and offer your employees the best relocation experience.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our team of experts to discuss how we can help improve your company’s corporate relocation program, or call us at 800.617.1904 or 480.922.0700 today.

Tags corporate relocation, Domestic Relocation, global mobility, North America Relocation, relocation, Workforce Mobility