Tag: Relocation Cost Management

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Discover Your Potential Relocation Cost Savings

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Relocation Cost Savings

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

 

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

 

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

 

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

Calculating your Relocation Cost Savings

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

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

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

Validate Your Savings Using Our Relocation Cost Calculator

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


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

Ready to Calculate YOur Program Savings? Request Access Now!

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

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Relocation Best Practices

2020 Year-End Reconciliation Process for Relocation Expenses

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If you manage your company’s relocation program, you should start preparing now to ensure a smooth 2020 year-end reconciliation process. Since many corporate departments interact with the relocation process, getting an early start will help everyone understand what they need to provide. Departments that manage accounting, travel, tax issues, and human resource functions may need to provide information for the reconciliation. A best practice is to focus on attention to detail from the beginning of the process.

Best Practice: Follow These 5 Steps to Ensure a Smooth 2020 Year-End Reconciliation Process

Step 1: Start by Writing a Thorough Reconciliation Checklist

When looking into your company’s relocation process, start noting the specific data points that apply in a well-written checklist. For example, considering the scope of a transferee’s relocation-related data, you will need the following information:

  • Salaries and wages
  • Compensation
  • Taxes (include any tax filing services for those eligible)
  • Imputed income (non-cash compensation)
  • Equity

Equally important are the dates that impact timing of the 2020 year-end reconciliation process. Be sure to correctly note and plan for dates such as:

  • Tax filing deadlines
  • Reporting deadlines
  • Early cutoff
  • Due dates to receive information

Step 2: Create Calendar Invitations for a 2020 Year-End Reconciliation Process Meeting

Identify all of the employees who will need to provide information for the reconciliation. Check their calendar availability and plan a meeting where all can attend. Be certain to look into vacations and holiday timetables so that everyone can be available for the meeting. Also, be sure to provide adequate notice so that invitees can make inquiries. For example, they may ask about their role in the process, or what data they should provide. Provide as much clarity as possible so they will know what to expect.

Step 3: The Three Most Important Words in a Reconciliation: Accuracy, Accuracy, Accuracy

It might go without saying, but it is critically important that all data reported for the 2020 year-end reconciliation process is accurate. Accounting systems, tax filing programs, and all other aspects of the process hinge on accuracy of the data. Incorrect data could lead to missed deadlines, additional fines and fees, and costs related to rework such as refiling tax paperwork. Before hitting the send button, confirm the accuracy of these important points:

A good approach is to request an audit of the information and the process. Your company’s Accounting Department may include an internal financial auditor, or perhaps the Quality Department may have a process auditor. See if they might conduct an audit of the reconciliation. Alternatively, one of your department colleagues might be able to provide a review to check for any inconsistencies.

Step 4: Check all of the Company’s Final Year-End Reports

At this point you should have most of the data you need to prepare your reports. However, there may be something that was missed that will later show up in a year-end report. Also, any late data entries at the end of the year should be counted as well. Check all company year-end reports with data that needs to be included in your 2020 year-end reconciliation process.

Step 5: Press that Send Button!

Once you have confirmed all of the reporting deadlines for every country and entity that requires a report—press that send button! Keep in mind that some transferees may need to be grouped together for reporting to certain tax-related organizations. A best practice is to send data and reports early, before the deadlines, and confirm receipt at the entity. Once you have sent data, begin the payment processes. Identify when final tax payments are due for the year, and then arrange for the payments to be submitted.

What Does This Mean?

Companies should always follow best practice recommendations to ensure reconciliation data is accurate. They should also ensure on-time reporting for their 2020 year-end reconciliation process. By following these best practices to confirm data accuracy and filing dates, companies can avoid errors. They can also avoid the cost of any fines, fees, and necessary rework.

What Should Employers do about The 2020 Year-End Reconciliation Process for Relocation Expenses?

Employers planning for their 2020 year-end reconciliation process for relocation expenses should work with a qualified and experienced Relocation Management Company (RMC). RMCs will be able to help companies understand all of the required inputs for a successful reconciliation. They can also share best practices to ensure data accuracy and on time reporting. Employers should request an audit of their reconciliation to ensure data is correct and important dates are documented for action.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients with reviews of their reconciliation processes. Our team can help your company understand how to design a 2020 year-end reconciliation process of relocation expenses that leverages best practice recommendations. As a result, your company’s processes will ensure data accuracy and on-time reporting.

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 request an audit of your year-end relocation expense reconciliation, 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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Corporate Relocation Domestic Relocation Global Relocation Global Relocation Challenges Relocation Best Practices Relocation Management Relocation Policy Review Relocation Programs Talent Mobility

2020-21 Corporate Relocation Budget: Start Planning Now

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It is not too early to start thinking about your company’s 2020-21 corporate relocation budget. Many companies start reviewing budgets on a regular timeframe. However, the year 2020 has been anything but regular. Every nation in the world has been dealing with the impact of the COVID-19 pandemic. From border restrictions to stay-at-home orders, the vast majority of companies have been facing multiple disruptions.

As a result, these disruptions are bound to have some type of impact on corporate budgets. Companies will find it difficult to determine the “new normal” in their business and industry.

Issues That May Lead to 2020-21 Corporate Relocation Budget Increases

Business Growth

Some companies have seen increasing demand for their products and services. For example, Amazon’s recent second-quarter report earnings call indicates tremendous growth for the company:

  • Earnings per Share: $10.30 (average analyst’s estimate: $1.46)
  • Revenue: $88.9 billion (average analyst’s estimate: $81.56 billion)
  • Sales: up 40% year over year in the quarter
  • Drivers: online retail, cloud services

Of special note is Amazon’s online grocery and delivery services, with significant progress in this area.

New Corporate Expansions

Other companies are planning significant expansions. Nikola Motor Company announced it will break ground on a manufacturing plant in Coolidge, Arizona. The plant should create thousands of jobs within Pinal County. Nikola expects to produce up to 35,000 hydrogen electric and electric semi-trucks.

Not to be outdone, Tesla recently announced it will build its next factory in Austin, Texas. Known as a Terafactory, the next Tesla Gigafactory will make the Tesla Cybertruck electric pickup truck and the Model Y. Additionally, Tesla’s headquarters location may also soon relocate to Austin.

Issues That May Lead to 2020-21 Corporate Relocation Budget Changes

Immigration Limitations

Beyond business growth and new corporate expansions, other issues may lead to budget changes. Limits on immigration may decrease a company’s ability to hire foreign nationals to work inside the United States. However, alternatives may still allow companies to hire qualified staff. These alternatives require specific conditions, with possible increases in costs in some areas such as travel and facilities.

Need for Highly Qualified Staff

Other issues could include staffing requirements. Some industries such as healthcare have seen a dramatic rise in the need for corporate housing solutions. This is due in part to a dramatic increase in a truly mobile workforce to deal with effects of the COVID-19 pandemic.

How Should a Company Approach Reviewing its 2020-21 Corporate Relocation Budget?

Every company looking to review its 2020-21 corporate relocation budget should consider the following 5 specific points:

1. Relocation Policy Review

It is imperative that companies undertake a review of their relocation policy. Best practice is to review this policy every 12 to 18 months. With changes impacting nearly every component of a company’s 2020-21 corporate relocation budget, a policy review will help define areas that should be examined for compliance, utilization, and cost savings.

Do you know if your company’s business continuity plan includes points related to its relocation program? A relocation policy review will highlight areas that should be considered, such as employees on temporary assignment who may need to be quickly reassigned to a different location.

2. Historical Data Review

A thorough review of expenses will provide a good indicator of areas in need of attention. That being said, it is now critically important to also factor in multiple forces that may impact the future budget, including:

A number of points specific to each company’s needs can be considered in light of new business operating guidelines.

3. Significant Cost Generators

Many costs in relocation budgets are due to significant cost generators. Often these costs are driven by specific activities such as moving an employee to a new destination, or reimbursing temporary housing costs during a short term assignment. A thorough review should include examining these activities in detail as they impact the relocation budget:

Be sure to compare and account for cost differences between global relocations and domestic relocations.

4. Accounting Accruals

Companies often account for business expenses that occur in one period by setting aside amounts known as accruals. Future expenses are then allocated toward the accrual amount. Reviewing your 2020-21 corporate relocation budget, consider those expenses that might be better accounted for through accruals.

A good practice is to review the prior year’s accruals to determine if similar amounts should be in the budget through accrual accounting methods. This will also help ensure a smoother expense tracking and recording process. It may also assist the company with cash management requirements.

5. 2020-21 Corporate Relocation Budget Strategic Initiatives

Consider the impact of any strategic initiatives that might result in additional employee relocations, new hires, or corporate expansions. Is the company planning to build a new manufacturing facility or open a sales office? Are there discussions of future partnerships with other firms? Are new talent management programs in development?

With the advent of COVID-19, today’s workforce is even more responsive to changing company requirements. Given the swift nature of how companies responded to the pandemic, be sure to plan for future contingencies, changes, and disruptions.

What Should Employers do for Their 2020-21 Corporate Relocation Budget?

Employers should work with a Relocation Management Company (RMC) that has knowledge and experience with relocation budgets and managing for contingencies. RMCs are ideal sources for industry best practices. RMCs also have valuable knowledge on global issues relating to immigration, travel, and how the relocation industry and service providers are changing to meet new requirements due to the COVID-19 pandemic.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to develop and prepare robust relocation programs that follow industry best practices. Our team can help your company understand how to account for each of these 5 specific points during the review of its 2020-21 corporate relocation budget.

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 request a relocation policy review as part of your 2020-21 corporate relocation budget review process, 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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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

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.

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 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

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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Relocation Best Practices Relocation Management Relocation Policy Review Relocation Programs Relocation Technology

Centralization Advantages: What You Should Know

Companies benchmarking their relocation policies often learn about many centralization advantages that can be obtained by moving away from a decentralized business model for their relocation program. Often a company’s decentralized relocation program develops over time through business mergers and acquisitions. Challenges come to light when a transferee from one location moves to a new location that has different relocation policies.

What are the Challenges of Decentralization?

There are many challenges for companies that follow a decentralized business model for their relocation program. Reporting systems are often inconsistent. Therefore, it is difficult to obtain accurate information on the full scope of the relocation program. Costs are often excessive due to a high number of policy exceptions, use of multiple vendors for the same processes, and in-house costs related to maintaining multiple relocation programs. Since business units, HR teams, and other departments operate independently, lack of ownership hampers progress.

Impact on Employees

These challenges impact the satisfaction of new hires and transferees who are subject to decentralized relocation programs. There may be confusion for employees with currencies, visas and documentation, and reporting requirements. Ultimately, these challenges may reflect back on the company’s reputation among job seekers and other employees approached for relocation opportunities.

What are the Centralization Advantages for Relocation Programs?

Companies that develop a centralized business model for their relocation program gain in many ways. These centralization advantages cover all aspects of relocation, and include:

  • Consistency in operating platforms with robust integration options
  • Cost containment to reduce variation and increase forecasting and predictability
  • Customized billing processes that meet the company’s needs
  • Defined ownership across local, regional, and global entities
  • Global access to courtesy mobility consulting 24/7/365
  • Greater discounts across a streamlined network of vendors along with dual bid savings
  • Reporting capabilities across multiple platforms, anytime, anywhere

What Should Companies do to Obtain Centralization Advantages?

Companies should work with a qualified Relocation Management Company (RMC) that has extensive experience in helping companies obtain centralization advantages for relocation programs. GMS has published a Case Study on Decentralization that describes how a client was able to obtain centralization advantages that led to significant cost savings and greater employee satisfaction.

Companies should ask their RMC a wide range of critical questions to address all of their main concerns. The RMC will help them understand how to obtain centralization advantages for their relocation program. Also, the RMC will help them design their relocation program. As a result, this will help gain the most benefits for the company, new hires, and transferees.

Industry Benchmarking Studies Highlight Centralization Advantages

GMS has also recently published several Industry Benchmarking Studies that will help companies learn whether their relocation program is designed following industry-specific best practices. There are many benefits to a corporate relocation policy benchmarking. For example, employers can learn how they can ensure their competitiveness in their industry to attract and retain talent with the highest level of skills and experience.

Industry best practice is to schedule a relocation program and policy review every 12 to 18 months to ensure your company maintains its competitive position. This review will also help your company learn about how the relocation industry is evolving to meet increased employee demands.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients benchmark their relocation program and obtain significant savings and process improvements through centralization advantages. Our team can help your company understand how to obtain centralization advantages for its relocation program. As a result, your company will be positioned to make a number of improvements to its relocation program as it works to obtain centralization advantages.

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.

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 more about the centralization advantages your company can obtain for its relocation program. 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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Relocation Best Practices Relocation Challenges Relocation Policy Review Relocation Programs

Year-End Relocation Expense Reconciliation: How You Should Prepare

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Companies with relocation programs should prepare for their year-end relocation expense reconciliation. The relocation program may have several parts that flow into multiple departments and functions such as Accounting, Human Resources, Travel, and Tax. Therefore, thorough preparation is critical to capture all relevant information. Approaching this requirement with sufficient attention to detail will help ensure data accuracy and on-time reporting.

GMS recommends companies follow best practices for their annual reporting processes. There are five steps companies should take to ensure a positive result.

5 Steps to Prepare for a Year-End Relocation Expense Reconciliation 

1. Create a Checklist for the Reconciliation

To start this process, begin writing a checklist. This checklist should include all of the information that accurate reporting requires. The checklist items should include several of the following data points:

  • Compensation data
  • Employees receiving tax filing services (those on the tax eligibility list)
  • Equity
  • Imputed income
  • Salaries/Wages
  • Taxes

Dates that are important for the year-end relocation expense reconciliation should be noted, such as:

  • Early cutoff dates
  • Due dates to receive data
  • Reporting deadline dates
  • Tax filing deadline dates

2. Schedule a Year-End Relocation Expense Reconciliation Preparation Meeting

Be sure to include representatives from all departments that must provide data for the reconciliation. Vacation time and holidays may impact work schedules, especially in the month of December. As a result, schedule this meeting to allow plenty of time for employees to learn what their role in the process is, what is needed from them, and to let them prepare the necessary data for reporting.

This meeting provides an opportunity to communicate expectations, as well as to develop relationships with colleagues who can assist with future year-end relocation expense reconciliation processes.

3. Confirm Data Accuracy

Companies should confirm all of the data that is reported for the reconciliation is accurate. Accurate accounting systems and processes should be in place to confirm data that is shared for the review. This step is absolutely vital to the entire process, as incorrect data could result in errors and additional costs. Data that should be confirmed includes:

  • Addresses
  • Benefits
  • Personal time (sick days)
  • Salaries/Wages
  • Social Security numbers
  • Tax ID numbers
  • Vacation time

Companies should ensure a thorough review of this data. An internal audit accountant might be helpful to confirm the accuracy of this data.

4. Finalize the Data to Prepare for Reporting

This step is to ensure the data includes all final reports through the end of the reporting period. Templates and sheets for the year-end relocation expense reconciliation may include blank lines or empty cells with highlights to note future data entry. For example, final year-end payroll figures may not be known until late December. All of this data should be stored on a server that is secure and continually backed up for easy retrieval if necessary.

5. Submit Reports

Confirm the reporting deadlines for every country that requires a report. Different groups of assignees or transferees may need to be further segregated for specific reporting requirements by tax reporting organizations. Whenever possible, send data early and confirm receipt. Note the final tax payment due dates for the year, and arrange for the payments.

What Does This Mean?

Companies should follow best practices to ensure accurate and on-time reporting for their year-end relocation expense reconciliation. By following best practices to confirm data and important dates, companies can avoid costly errors, expensive rework, and rush projects.

What Should Employers do About Their Year-End Relocation Expense Reconciliation?

Employers planning for their year-end relocation expense reconciliation should work with a qualified and experienced Relocation Management Company (RMC). RMCs will have knowledge that can assist companies in understanding all of the important parts of a reconciliation. They can also share recommendations and guidelines to ensure data verification and timely reporting processes. Companies should request an audit of their year-end relocation expense reconciliation to ensure they have a robust process.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients with reviews of their reconciliation processes. Our team can help your company understand how to design a year-end relocation expense reconciliation that follows industry best practices to ensure data accuracy and on-time reporting.

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 request an audit of your year-end relocation expense reconciliation, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation program audit

Relocation Expenses Incurred in 2017 and Reimbursed in 2018 are Not Taxable

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The Internal Revenue Service has ruled that relocation expenses incurred in 2017 and reimbursed in 2018 are not taxable. Prior to this ruling, employers had been treating such reimbursements as taxable income for transferees. As a result, employers had been withholding federal taxes on that income.

How did this tax issue arise?

The issue arose as a result of the 2017 Tax Cuts and Jobs Act. The Act suspended the exclusion from income for qualified moving expenses paid or reimbursed by an employer. However, many moves actually occurred in 2017 with final accounting and reimbursement occurring in 2018. As a result, several transferees do not have clarity regarding their 2018 tax obligations.

What does the IRS rule state?

Notice 2018-75 provides that amounts reimbursed for 2017 moves are not taxable even if they are paid or reimbursed in 2018. Employers that have included relocation expenses in individual’s wages or compensation may use the adjustment process under Section 6413 or the refund claim process under Section 6402. These processes allow the employer to correct the overpayment of federal employment taxes.

What does this mean?

Transferees with a qualified 2017 move will not owe taxes on any amounts paid for or reimbursed by their employer in 2018. Qualified moves include those that are work-related, and for which relocation expenses would have been deductible if the employee had paid them in 2017. Also, the employee must not have already claimed these expenses as deductions in 2017.

What should employers do?

Employers who have been withholding federal taxes on such amounts should process adjustments for these overpayments. Employers should not include reimbursements and amounts paid for qualified 2017 moves and relocation expenses as income for the affected employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to respond to the impact of changing tax and other regulations. Our team can help your company understand how best to proceed with this new IRS ruling. We can help your company understand how it relates to employee income, federal tax withholding, and moving expense reimbursements.

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 the law regarding relocation expenses. However, GMS is not a CPA firm and is not giving tax advice. Everyone’s tax situation is different; individuals and employers should consult their tax advisors prior to making any decisions.

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Relocation Management Relocation Policy Review

Lump Sum Self-Service with Payment Options for Relocating Employees

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What does a traditional Lump Sum relocation program entail as opposed to Lump Sum Self-Service? In traditional Lump Sum relocation programs, employees receive a specific amount of funds for relocation. They also work with a Relocation Management Company to select services within the parameters of their employer’s relocation policy. Global Mobility Solutions (GMS) can also arrange for relocating employees to receive a GMS MoveMoney™ debit card. With this card, funds are electronically transferred to the employee after their expense report is audited.

Lump Sum Self-Service

GMS is developing a new online Lump Sum Self-Service with Payment Options to provide relocating employees direct access to our network of suppliers through our proprietary MyRelocation™ website portal. Using the lump sum provided by their employer, the relocating employee will be able to choose any of the services and options within our network of providers. They will also be able to arrange payments directly to the providers. Furthermore, the employer does not have to track relocation expenses or be involved in the process. As a result, the relocating employee will have complete freedom of choice for their relocation process. They can utilize helpful packing and moving guides and other information as they manage their relocation.

Benefits of Lump Sum Self-Service

There will be several benefits to the Lump Sum Self-Service for relocating employees:

  • Immediate access to suppliers of proven quality and experience
  • Payment options with suppliers that are easy to set up
  • Information about services that they otherwise might not have found doing their own research
  • Anytime, anywhere access to the employee’s relocation information
  • Cost savings for the relocating employee with multiple suppliers bidding to provide services
  • Reduced administration costs and efforts for employers

Conclusion

Relocating employees provided with Lump Sum funds will soon be able to have access to a network of qualified suppliers through Lump Sum Self-Service. Asking providers to bid for services and choosing the lower cost options will help relocating employees save money for other relocation services. Employers choosing to provide Lump Sum funds to relocating employees should encourage the use of Lump Sum Self-Service with Payment Options.

The global relocation experts at GMS have the knowledge and expertise to help your company understand how to communicate the benefits of Lump Sum Self-Service with Payment Options to your relocating employees. Contact our team of experts to discuss your relocation policy needs, or call us at 800.617.1904 or 480.922.0700 today.

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5 Easy Steps for Year-End Relocation Expense Reporting

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While most people are busy preparing for the holidays, you’re scrambling through the year-end reconciliation of your relocation expense data. Well, even though it’s only November, here is a gift that will help you navigate your year-end process this year and for years to come.

Though many relocation managers might prefer holiday gift shopping to year-end reporting, the process tends to go more smoothly when run by the relocation department. To maximize efficiency, be sure to follow these five steps:

1. Checklist

Create a year-end checklist. A detailed checklist will identify the information you need to accurately report year-end compensation. Your checklist should include due dates, responsible individuals, and departments. Establishing the responsibility for reporting relevant compensation data is critical and may include several components such as wages, imputed income, benefits, equity, and taxes. This year-end checklist will help you identify all the resources you need to create a complete and accurate report. Your itemized checklist should include items such as early cutoff dates, all employees who will receive the tax filing services (employees on the tax eligibility list), and provide for the time needed for verification, approval, and processing. A well-developed checklist will also set firm deadlines for reporting and tax filings.

2. Preparation Call

Set up a year-end preparation call. When setting due dates, remember the mandatory vacation times required by some countries toward the end of December. During the call, review your year-end checklist with all involved parties to ensure they are aware of their role and deadlines. Use this call as an opportunity to build understanding and develop relationships that will make year-end reporting easier in the future. If you have not already held a year-end preparation call, schedule one as soon as you finish reading the rest of this article!

3. Verify Data

Verify all of your data. Accuracy is vital, especially for compensation reporting. Data such as addresses and tax ID numbers/Social Security numbers should be confirmed, as well as wages, benefits, sick days, and vacation time. Verifying relocation expense data eliminates backtracking and costly errors.

4. Finalize Data

Finalize your relocation expense data. Make sure that the final payroll reports of the year have been included, plus any end-of-the-year benefits. Be sure to back up the program data again and save it in a secure location for easy future reference.

5. Submit Report

Get ready to submit your report. Double-check the deadlines for all the countries on your list and be prepared to provide specific data for each country. Tax providers may ask for data for different assignee/transferee populations. Be sure to adhere to your year-end deadlines and, whenever possible, send the data ahead of time. Some international locations may have very tight turnaround times to make that final tax payment of the year.

Modern Mobility Made Easy™

What this means for you and your relocating employees

As with anything, practice makes perfect. The more you follow these five steps, the easier your year-end reporting will become. Global Mobility Solutions – a leader in mobility management since 1987 – has expert relocation consultants who can help you quickly implement relocation policies custom-tailored for your needs, as well as expense reporting to make your year-end reconciliation easier. Request a professional audit of your year-end process.

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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