Tag: workforce mobility management

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Corporate Relocation Corporate relocation tips

3 Tips to Use When Prepping Your 2023 Relocation Budget

Cropped shot of an attractive young businesswoman working in a modern office with her colleagues in the background

Use these tips to keep relocation costs manageable moving into 2023

We may be working through Q3 of 2022, but it’s never too early to start budgeting for the new year. During the year’s second half, companies begin to evaluate their costs in all areas. Any reliable relocation management company (RMC) would recommend that companies take a look at their relocation packages on an annual basis. This assures talent mobility benefits offered to new employees are competitive. 

These tips provided on the business relocation budget focus on research, cost competitiveness, and professional expertise. Focusing on these tips will also help guide the employee’s moving process in a positive direction. Identifying the full scope of what the company covers regarding moving expenses are critically important to developing a useful talent mobility program.

1) Work with a Relocation Management Company

Working with a qualified RMC will help your company achieve success. RMCs have valuable knowledge and experience to determine how to proceed with the company’s relocation services. Having experience helping companies move employees lets RMCs bring essential points to the forefront. As a result, the company’s budget will have a higher degree of accuracy. Also, the process will ensure a smoother and more successful employee relocation.

When choosing the RMC, look for one that offers ongoing employee support services, relocation benefits, superior technology, comprehensive supplier management, and an industry-leading expense management program. In addition, employers should provide resources for employees and their families during the relocation process. This will help them gain confidence in accepting their new assignments.

2) Get Estimates from Multiple Providers

Employee relocation is a significant undertaking. Companies must be sure to obtain the most substantial value from the business relocation. Therefore, companies should ensure that the RMC of their choice can get their relocation programs in the most cost-efficient way.

Obtaining multiple estimates from reputable suppliers helps companies identify cost-effective solutions that meet the business relocation budget requirements. It is important to note that rates can often be negotiable. RMCs that have experts in group move coordination can easily leverage volume to obtain the best rates from van lines for business relocation and for employees’ household goods moves.

3) Research and Understand Your Rights

The Federal Motor Carrier Safety Administration outlines many rights and responsibilities that businesses are entitled to before, during, and after relocation. These rights are noted in Electronic Code of Federal Regulations, Subpart F—Transportation of Shipments §375.601, §375.603, §375.605, §375.607, §375.609. They include:

  • A van line must move a client’s belongings in a timely manner
  • The moving company must provide a written record called a reasonable dispatch service
  • If there is a delay, the company must then prepare a written record of its amended date for delivery

GMS Can Help Keep You Under Budget

Your company’s 2023 business relocation budget will require adherence to cost guidelines. Therefore, ensuring the entire logistical process runs smoothly and efficiently is essential. Global Mobility Solutions (GMS) team of corporate relocation experts has helped thousands of our clients develop their relocation program budgets. In addition, our team has also helped hundreds of clients create and administer their business relocation budgets for individual and group moves. As a result, we can help your company develop a thorough and cost-effective relocation budget to ensure an entirely successful corporate relocation process.

If you are ready to discuss ways your company can save on talent mobility programs, reach out to us today. We will start with a free consultation with you to go over all your needs when it comes to moving employees. From there, our team will work on a relocation budget that can help your company and employees thrive.

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 Tips Domestic Relocation Trends

Florida Gains Residents for Several Reasons

News on state-to-state relocation often notes that Florida gains residents as part of a broader domestic US migration trend. Recently it was noted that Florida is gaining even more residents due in part to the impact of the COVID-19 pandemic. Several factors are driving this domestic migration trend, including:

  • Availability of jobs and future job growth
  • Corporate relocations
  • Retiring workers moving to warmer climates
  • Desire for lower costs of living
  • Seeking lower tax environments

Many states in the Northeast and Midwest are losing residents to Florida. A review of tax filings shows many new Florida residents hail from the Tri-State region of New York, New Jersey, and Connecticut, as well as Massachusetts and Illinois. Comparing these factors between states illustrates why Florida gains residents while other states lose residents.

New York versus Florida Tax Environment Helps Illustrate why Florida Gains Residents

High taxes are often cited as a major reason that residents depart New York. How high are New York taxes versus Florida taxes? Recent analysis shows New York is the state where residents pay the most in taxes.

In 2018 the US government put limits on individual state and local “SALT” tax deductions for income tax filing purposes. The $10,000 cap on SALT deductions can result in a significant increase in a resident’s federal tax burden. As a result, many high income residents have been fleeing high tax states. The situation has caused some state governments to try to enact workarounds to prevent this effect. However, the IRS is disallowing several of these workarounds. Only a limited number of workarounds relating to “pass-through entities” appear to be excluded from IRS disallowances.

In the case of New York and New York City, unless an individual can leverage some kind of pass-through entity to avoid the cap on SALT tax deductions, they may face many of the following taxes:

New York State Taxes

  • Income tax
  • Sales tax (goods and services)
  • Property tax
  • “Sin” tax (liquor, tobacco, gambling)
  • Estate tax
  • Motor Fuel tax (excise tax, petroleum business tax, petroleum testing fee)

New York City Local Taxes

  • Income tax
  • Sales tax (goods and services)
  • Metropolitan Commuter Transportation District (MCDT) surcharge

In the case of Florida and Miami, it may not be easy to see why Florida gains residents, as individuals may face many of the following taxes:

Florida State Taxes

  • Sales tax (goods and services)
  • “Sin” tax (liquor, tobacco, gambling)
  • Motor Fuel tax

Miami Local Taxes

  • Property tax
  • Sales tax (goods and services)

Major Differences between New York and Florida Taxes Shows Why Florida Gains Residents

There are some major differences in the tax situation between New York and Florida. These differences help explain why Florida gains residents while New York loses residents. In particular, Florida does not impose any state or local income tax. There is also no estate tax in Florida.

Additionally, the tax rates may be significantly different, such as in sales taxes. Sales taxes may include state, county, city, and other local taxing jurisdictions.

New York City versus Miami Sales Taxes

Comparing the rates for New York City and Miami:

New York City total sales tax rate: 8.875%

  • City sales tax 4.5%
  • State sales tax 4%
  • MCTD surcharge 0.375%

Miami total sales tax rate: 7%

  • County surtax 1%
  • State sales tax 6%

As Florida Gains Residents, What Does This Mean?

There are several points to consider as Florida gains residents. The construction industry will continue to grow with job opportunities as housing, commercial, and infrastructure projects proceed. With a greater number of employees able to work anywhere with new corporate policies, local Florida employers may benefit from their proximity to a larger pool of local employees. There may be further shifts in political representation as the 2020 US Census takes note of Florida’s population growth and New York’s population decline.

What Should Employers do as Florida Gains Residents?

As Florida gains residents, employers should review their talent acquisition and retention programs to ensure they remain competitive in their market. Employers should consider the impact of employees relocating to Florida on current staffing as well as tax withholding considerations. Work from anywhere policies should be examined to ensure employees are encouraged to remain with the employer.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to consider the impact of US domestic migration trends. As Florida gains residents, our team can help your company understand how to identify important issues that may impact talent acquisition and retention programs. We can also help your company understand if a relocation to Florida or a corporate headquarters relocation might be a future opportunity for corporate growth.

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

New SafeRelo™ COVID-19 Knowledge Portal

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

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

Contact our experts online to learn how to position your company’s relocation program for success as Florida gains residents, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is not a CPA firm, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their financial advisors prior to making any decisions.

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

2020 Best States for Homeowners

Three bison grazing in front of the Teton Range in Grand Teton National Park, Wyoming, a state that is #1 on the 2020 Best States for Homeowners ranking

What are the 2020 best states for homeowners? While the world may be in the midst of the COVID-19 pandemic, the housing market has been performing at a blistering pace. According to Lawrence Yun, Chief Economist and Senior Vice President, Research at the National Association of Realtors®, the housing market is booming due to record low interest rates, and to current homeowners looking for larger homes with the shift to remote work. Yun also believes this trend will lead to a secondary level of demand into the next year.

Pursuing the American Dream of Homeownership

Homeownership is a consistent goal in the pursuit of the American dream. It is often cited as the number one way that people can build wealth. The United States Census Bureau reports that the median net worth of homeowners is 80 times larger than the net worth of renters. Beyond building wealth, there are several economic reasons why people want to own a home, and several personal reasons.

Economic Reasons for Homeownership

  • Tax benefits let homeowners deduct mortgage interest, property taxes, and some home buying costs
  • Homes appreciate in value over time
  • Mortgage payments help homeowners build equity in a home
  • Equity in a home is a form of savings
  • Fixed-rate mortgage payments do not increase over the years

Personal Reasons for Homeownership

  • Freedom to make changes and upgrades
  • Stability helps reinforce neighborhood relationships
  • Desire for more space
  • Further distance from neighbors
  • Ability to pursue hobbies and interests more easily
  • Avoid dealing with security, pet, and utility deposits

The 2020 Best States for Homeowners

Home buyers will want to know the 2020 best states for homeowners so they can plan accordingly. SmartAsset recently published their sixth annual study on the 2020 best states for homeowners. The financial technology company analyzed several factors that home buyers may consider as they seek to purchase a new home. These factors include ten metrics that cover prices per square foot, costs for insurance, property taxes, closing costs, and other factors.

2020 Best States for Homeowners

  1. Wyoming
  2. Idaho
  3. Indiana
  4. Utah
  5. New Hampshire
  6. Massachusetts
  7. Maine
  8. Arizona
  9. Wisconsin
  10. Washington

Importantly, the study notes that homes appreciated in the five western states by over 5% on an annual basis the past year. Also, the three states in the Northeast rank high for low insurance costs and low burglary rates.

2020 Worst States for Homeowners

  1. Connecticut
  2. Illinois
  3. Texas
  4. Maryland (tie)
  5. Kansas (tie)
  6. California
  7. Louisiana
  8. New Jersey
  9. Delaware
  10. New Mexico

Of the 2020 worst states, metrics such as insurance, home appreciation, and effective property tax rate are comparatively less favorable than similar metrics in the 2020 best states for homeowners.

What Does This Mean?

Home buyers with the flexibility to locate in other markets should be aware of the 2020 best states for homeowners. As housing market demand continues to rise, buyers should work with knowledgeable and experienced real estate agents. Employers with new hires and transferees who are looking to purchase a home one of the 2020 best states for homeowners should work with a Relocation Management Company (RMC). RMCs that have knowledge and experience with relocations are ideal sources for information relating to local housing market requirements. They will also understand the reasons why employers should encourage transferees to buy instead of rent.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to provide solutions for their new hires and transferees who are looking to buy or sell a home. Our network of top agents market homes following industry best practices. As a result, they will help home buyers and sellers understand how to find and purchase homes in the 2020 best states for homeowners.

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

New SafeRelo™ COVID-19 Knowledge Portal

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

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

Contact our experts online to learn more about the 2020 best states for homeowners, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges

Temporary Housing Solutions in Times of Crisis: 2020 California and Oregon Wildfires

Woman sitting on floor, smiling, holding coffee cup, looking at large dog in in their temporary housing

Temporary housing solutions have applications beyond providing homes for transferees on short-term assignments. Recently GMS was contacted by several clients and prospective clients seeking assistance for employees displaced by the 2020 California and Oregon wildfires. Many of these employees lost their homes to fires or had to be evacuated to another location.

Each of the stories is heartbreaking for the employee and their family members. Ultimately, GMS was able to provide immediate assistance for everyone who called seeking temporary housing.

Sam Hoey, Senior Vice President, Business Development, oversaw the GMS response for our clients and prospects. Sam agreed to share the solutions that GMS implemented.

Traditional Temporary Housing Solutions

GMS recommends clients choose traditional temporary housing solutions for a number of reasons. Important criteria that are addressed with traditional solutions include:

  1. Move-in Inspection covering several points
  2. Cleanliness meeting specific standards
  3. Emergencies and Maintenance Issues
  4. Security Standards including the Wi-Fi System

Traditional temporary housing gives clients and employees peace of mind that these major areas of concern are taken care of down to the last detail.

Scope of Client’s Immediate Needs for Temporary Housing

Destruction from the 2020 California and Oregon wildfires is vast and widespread:

California

Oregon

The wide area of destruction spread over both states impacts many employees. In some cases, over 400 employees were displaced in just a few days, with many actually losing their entire homes. Employers seeking to help for their displaced employees contacted GMS to discuss how best to help those in need.

GMS Leverages Temporary Housing Solutions

  • After receiving requests for assistance, Sam sent the clients and prospects a clearly written communication. The instructions were to send the communication to their employees about who to contact at GMS for immediate assistance.
  • GMS set up every employee in need with a GMS Relocation Coach. The Coach assessed their needs, and in many cases then sent the request to a client-directed preferred temporary housing provider, ATB Housing.
  • A few cases required specialized responses. One employee displaced in Salem, Oregon, also had 4 large dogs. Instead of sending the dogs to a boarding kennel, GMS sourced a nearby fully furnished apartment for the employee on a 30 day rental basis.
  • Some employees preferred booking extended stay hotels instead of temporary housing for the time being since they did not know what insurance would be offering them for their specific cases. ATB Housing also arranged the hotel options for these employees.

What Does This Mean?

GMS has a team of experts that help clients address nearly any relocation issue, including an emergency request for temporary housing. Clients should work with a Relocation Management Company (RMC) that has extensive knowledge and experience in housing solutions for employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to respond to emergency situations and changing employee needs. Our team can help your company understand how to find appropriate temporary housing solutions during any type of local crisis, including wildfires.

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

New SafeRelo™ COVID-19 Knowledge Portal

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Contact our experts online to learn about temporary housing solutions for your employees, or give us a call at 800.617.1904 or 480.922.0700 today.

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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

Young woman collecting important documents
Shot of an attractive young businesswoman going through paperwork while sitting with her laptop

It is not too early to start thinking about your company’s 2020-21 corporate relocation budget. Many companies review budgets on a regular schedule. However, 2020 has been anything but ordinary. 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. Immigration limits may reduce a company’s ability to hire foreign nationals to work in 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:

  • Immigration issues
  • Travel restrictions
  • Costs to comply with COVID-19 sanitation guidelines
  • Virtual talent acquisition
  • Virtual office requirements
  • Tax compliance issues

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:

  • Home Sales
  • Home Purchases
  • Temporary Housing Costs
  • Tax Obligations
  • Household Goods Moves

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 whether some expenses 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.

Categories
Domestic Relocation Domestic Relocation Trends Global Relocation Global Relocation Trends Job Market Job Seekers Labor Force

STATE TAX COMPLIANCE ISSUES TO CONSIDER WITH REMOTE WORKING POLICIES

young woman working on laptop
Shot of a young businesswoman using a laptop while working in her home office

Telecommuting or the new Work from Anywhere policies are not a new concept. With traditional Work from Home policies, employees are typically within commuting distance of their office. In recent years, Work from Anywhere policies have begun to emerge. Under this type of arrangement, employees have greater flexibility to choose where they live and work.

COVID-19 Pandemic Accelerates Work from Anywhere Policies

While the number of employees working remotely has been growing at a steady pace over the past several years, the COVID-19 pandemic has now pushed this issue to the forefront and more companies are considering Work from Anywhere policies that allow employees to live and work in any location. While this type of policy is very attractive to both the company and employee, this type of policy can trigger new tax compliance issues for both parties.

GMS spoke with Erika Beddow, Business Development Manager at Global Mobility Tax, LLP (GMT).  Erika has over 20 years of experience in public accounting and in the global mobility industry. She has worked on an array of multi-national clients throughout her career. Erika also enjoys navigating complex situations while prudently mitigating risks, identifying value creation opportunities, and building strategic partnerships.  Erika agreed to share her expert guidance on this issue.

What is Important to Know about Remote Work Policies?

Erika notes that as with domestic business travel planning, it is important to note that each US state has its own unique laws and reporting requirements. During the COVID-19 pandemic, many employees have been telecommuting in states other than where they typically work due to stay at home orders and quarantine. These employees can unknowingly trigger state and local tax issues for the company, as well as payroll obligations in the state in which they are working.

Lacking State Guidance Regarding Issues Relating to Remote Work

Currently, Erika reports that only a few states have provided guidance and certain relief for companies and individuals who are working in their state temporarily due to the COVID-19 pandemic. Unfortunately, there is still a lot of uncertainty surrounding how many states will tax these individuals and businesses.

Possible Triggers for State Nexus and Payroll Withholding Requirements

As the globe recovers from the pandemic and employees continue to work remotely, Erika strongly believes that companies will need to consider the remote worker implications to avoid unknowingly trigger state “nexus” and payroll withholding requirements. (Nexus is the term used to describe a company being recognized as an entity in a particular state or jurisdiction.)

Additionally, businesses may face penalties and interest for failing to withhold state income taxes, while employees may have an increased tax filing obligation.

Work from Anywhere Policies: Benefits Versus Potential Cost Increases

Some benefits to Work from Anywhere policies are that they provide the employee more flexibility in where they live and work and the hours in which they work. However, Erika believes that companies need to be aware of the possible increase in costs to the organization. She notes that some increases can include administrative costs, payroll obligations, and tax implications for this type of policy.

According to Erika, while putting in place Work from Anywhere policies, companies will need to consider the following important points:

  • Understand corporate and payroll tax compliance obligations, not only in the location where the company operates, but also where their employees are living and working.
  • Monitor and track the location of where their employees are working.
  • Determine whether the employee’s work location has triggered corporate tax responsibilities due to state nexus.
  • Report employee income correctly and withhold appropriate taxes based off where they are tax resident as well as working.
  • Educate employees on state filing requirements and residency rules and provide tax assistance if necessary.
  • Provide guidelines for states the company can comply with versus states that may be too expensive due to payroll complexities and state nexus.

States are Increasing Their Ability to Track Remote Workers and Business Travelers

Many states have already been stepping up their ability to track remote workers and frequent business travelers prior to the COVID-19 pandemic. However, COVID-19 is putting pressure on state budgets. As a result, many states will likely increase their review of a company’s payroll filings and corporate nexus as more employees start working and living in different states than the employer.

How Work from Anywhere Policies May Lead to Non-Compliance

Companies can easily fall out of compliance if they are not tracking where their employees are working from and reporting the income and withholding taxes in the other state. Non-compliance can lead to unexpected tax implications for both the employer and employee, including fines and penalties.

If a company is considering implementing Work from Anywhere policies, each employee’s situation should be carefully reviewed. Erika states it is important for companies to determine whether any employee working in a different state has triggered state nexus, and to review the specific payroll tax withholding obligations in that state.

Solution to Help Companies Considering Remote Work Policies

GMT has put together a service solution to assist companies in evaluating and analyzing these issues. This solution helps companies by:

1. Implementing the GMT 2020 State Tax Compliance Solution

  • Ensuring payroll compliance and tax withholding
  • Advising employees on state residency and state tax filing requirements
  • Providing individual state tax services for your employees

2. Identify and quantify the risks state to state for remote workers

3. Discuss and draft an action plan for monitoring employees

4. Help find the stakeholders and create reports to support the action plan

5. Assist with systems integration to automate the process

6. Analyze and assist with state trailing liabilities from equity awards

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients learn about important issues such as tax compliance for their organization. Our mobility consulting team can help your company understand how to implement Work from Anywhere policies. We can also help your company to understand issues of compliance and non-compliance to state tax requirements with the expert assistance of Global Mobility Tax, LLP.

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

Contact our experts online to learn more about Work from Anywhere policies and state tax compliance versus non-compliance issues, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Business Services Choosing a Relocation Company Corporate Relocation Relocation Best Practices Relocation Challenges United States Economy

Post-Pandemic Business Planning: The Importance of Pre-Decision Services

Shot of a mature businessman having a brainstorming session against a glass screen in a modern office

What will your employer’s post-pandemic business planning require? The United States has seen two months of unexpected employment increases, far beyond expectations. According to the U.S. Bureau of Labor Statistics, the employment situation over the past two months reflects:

May 2020 Employment Situation

Nonfarm Payroll Employment Increasing by 2.5 million

Unemployment Rate declining to 13.3%

June 2020 Employment Situation

Nonfarm Payroll Employment Increasing by 4.8 million

Unemployment Rate declining to 11.1%

A Returning Workforce Requires Thoughtful Post-Pandemic Business Planning

Many employers are currently making plans for their returning workforce. They may need to develop new workspace configurations in order to limit COVID-19 issues. They may also need to hire new employees, develop a robust talent acquisition program, or arrange for short term domestic assignments.

Post-pandemic business planning must take into account a variety of issues and factors that many employers have not ever thought of, let alone have expertise in. Operating a business in the aftermath of COVID-19 requires significant measures of research, analysis, and thoughtful approaches to solutions.

Pre-Decision Services Help Employers Understand the Issues of Importance

Employers focusing on talent acquisition as part of their post-pandemic business planning should work with a Relocation Management Company with knowledge and experience in pre-decision services. As the original pioneer of the benefits of pre-decision services, Global Mobility Solutions (GMS) can help employers understand the issues of importance to new hires and transferees. GMS offers a wide range of pre-decision services including candidate assessments that help clients assess the circumstances of prospects who are likely to succeed.

Candidate Assessments Provide Valuable Information for Post-Pandemic Business Planning

Candidate assessments provide valuable information for employers as to the expectations of new hires and transferees. New workspace configurations and requirements should be clearly communicated during the pre-decision phase. Questions and feedback from candidates and transferees will provide a valuable source of input and guidance for an employer’s post-pandemic business planning with respect to COVID-19 planning and hazard reduction efforts. With respect to post-pandemic business planning, pre-decision services provide several benefits for clients by:

  1. Clearly identifying a candidate’s issues, concerns, and questions
  2. Completely eliminating any risk of non-acceptance
  3. Minimizing policy exceptions
  4. Increasing the accuracy of budgets
  5. Providing cost savings for the client
  6. Increasing job acceptance ratios
  7. Streamlining the candidate’s orientation to the new location

How Can GMS Help Your Company’s Post-Pandemic Business Planning?

GMS has the knowledge and experience to help your company understand how to identify issues and learn about useful resources. GMS’s team of domestic relocation experts can help your company learn how to use information gathered during pre-decision services to enhance post-pandemic business planning.

As a result, we can help your company develop robust plans during its post-pandemic phase of operations. This will help maintain your competitive position in the marketplace for highly skilled and qualified talent.

What Should Employers do?

Employers looking to enhance their post-pandemic business planning should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs are ideal sources for information on corporate relocations, workspace setups, pre-decision services, and many issues specific to each employer’s needs surrounding new hires, transferees, and talent acquisition.

Conclusion

GMS’ team of corporate relocation experts has helped many of our clients determine how to identify specific needs of new hires and transferees through pre-decision services. Our team can help your company determine how to leverage information gathered from new hires and transferees. As a result, this will help your company enhance its business planning process.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators. This leadership 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. Our relocation industry and technology experts are dedicated to keeping you informed and connected. Contact our experts online to learn more about how your company can leverage pre-decision services to enhance its post-pandemic business planning, 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 Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends United States Economy

New Workspace Configurations Reinforce Employee Safety

Female client with protective face mask and surgical gloves for protection against virus, keeps social distancing at waiting room, sitting at chair and looking at paper, with two chairs with information sign, between next client in bank

The GMS team is working to identify new workspace configurations that will reinforce employee safety at all of its facilities. The COVID-19 pandemic requires a robust response from employers to examine all aspects of workspaces, from entry to exit. Many organizations have issued a variety of helpful guidelines. The key to their effectiveness is thoughtful and rigorous implementation.

General Guidelines for New Workspace Configurations

The Centers for Disease Control and Prevention (CDC), the Occupational Safety and Health Administration (OSHA), and other organizations provide several recommendations for employers looking to create new workspace configurations to prepare for COVID-19. OSHA maintains an online COVID-19 resource center with many highlights and guidelines. These guidelines include, but are not limited to:

  1. Implementing appropriate policies for:
  2. Social distance requirements
  3. Protective equipment including masks
  4. Checking employee temperatures
  5. Testing/Isolation/Contact tracing
  6. Sanitation
  7. Use and disinfection of common areas
  8. Business travel
  9. Monitoring workforces for symptoms
  10. Implementing policies for workforce contact tracing

Phasing in New Workspace Configurations

Following a phased approach lets employers and employees test new workspace configurations and determine whether they must address additional points. Employee feedback can help identify areas that might be of concern when larger numbers of employees return.

Another benefit of a phased approach is that if there are areas of concern, the likelihood of a greater issue can be avoided. The CDC encourages employers to conduct a thorough hazard assessment of their workspaces to identify any potential issues related to COVID-19. It also recommends using appropriate combinations of controls from the National Institute for Occupational Safety (NIOSH)’s hierarchy of controls to limit the spread of the virus. The hierarchy of controls includes aspects relating to:

  • Engineering controls
  • Workplace administrative policies
  • Personal protective equipment (PPE)

The hierarchy of controls range from least effective (protect the worker with PPE) to most effective (physically remove the hazard).

Important Reminder from the CDC for New Workspace Configurations

The CDC recommends that employers remind both employees and customers that the CDC recommends wearing cloth face coverings in public settings. However, face coverings do not replace the need to practice social distancing.

How can GMS Help Your Company?

GMS’s team of relocation experts has worked with many clients on all aspects of corporate relocations. Reconfiguring workspaces to reinforce employee safety is similar to arranging a corporate move. Points to consider range from new workspace configurations to identifying specific needs through Pre-Decision Services for new hires and transferees.

GMS has the knowledge and experience to help your company understand how to identify issues and learn about useful resources. As a result, we can help your team create an appropriate solution to limit hazards relating to COVID-19 in your new workspace configurations.

What Should Employers do?

Employers looking to create new workspace configurations should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs are ideal sources for information on corporate relocations, workspace setups, and a variety of other issues specific to each employer’s needs.

Conclusion

GMS’ team of corporate relocation experts has helped many of our clients determine how to identify specific needs with respect to corporate locations and new workspace configurations. Our team can help your company determine how leverage guidelines and resources to help limit issues relating to COVID-19.

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

Contact our experts online to discuss how GMS can help your company determine how to set up new workspace configurations, 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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Job Market Job Seekers United States Economy

State Employment Differences Amplified by COVID-19

Omaha downtown skyline during Autumn, with a lake at the Heartland of America Park in the foreground

Across the U.S., state employment differences are often reflective of a variety of factors. Some of these factors are broad in scope, and others may be distinctly local. For example, components that may influence the growth or decline of employment in a specific industry sector may include:

  • Economic policies
  • Trade agreements
  • Favorable climate/weather
  • Local investment
  • Presence of natural resources

Over time, and if industries are successful, they may take an outsize role within a state. The automotive industry is an example of this type of impact. This industry has grown so large that its health impacts the states with automotive manufacturing facilities. The state of Michigan ranks as the #1 state for automotive manufacturing. As a result, the industry is often at the center of discussions about the state’s economy.

Comparison of Two State Employment Differences Resulting from COVID-19

Since the start of the COVID-19 pandemic in the U.S., employment has seen dramatic shifts. State employment differences reflect the concentration of various industries across states. For job seekers in the current job market, researching specific industries may help determine places with employment opportunities.

The U.S. Bureau of Labor Statistics publishes several reports on the labor market. The State Employment and Unemployment Summary reports on state employment differences. The period from March to April 2020 shows the impact of the COVID-19 pandemic on the labor market by state. Interestingly, the data shows a significant difference across many states. The preliminary measures from March to April range from a low of 4.3 point increase in unemployment, to a high of 21.3 point increase. The two states at these ends of the spectrum reflect the impact of industry concentration within a state.

Nebraska

The state of Nebraska March to April 2020 increase is the smallest of the 50 states, at only 4.3 points.

Nebraska Unemployment Rate

March 2020April 2020Change Month to Month
4.08.34.3

While Nebraska has an agricultural history, economic diversification has lessened the impact of one industry on the state’s employment performance. Currently Nebraska’s largest industries include:

  • Insurance and Financial Services
  • Manufacturing across Several Industry Sectors
  • Agriculture including Livestock, Corn, and Feed
  • Transportation including Rail and Trucking
  • Services including Healthcare, Data Processing, and Law Firms

All of these industries add to the state’s economic diversification and growth. As a result, no specific industry has an outsize influence across Nebraska. The impact of COVID-19 with respect to state employment differences are likely to be spread across several industries in Nebraska. Additionally, the Nebraska city of Curtis is looking to attract residents to become homeowners and landowners.

Nevada

The state of Nevada March to April 2020 increase is the largest of the 50 states, at 21.3 points.

Nevada Unemployment Rate

March 2020April 2020Change Month to Month
6.928.221.3

Nevada’s economic performance hinges in large part on the state’s tourism industry. Within this industry, the most important sectors are gaming/gambling, hospitality, and leisure. Gambling taxes are a primary source of the state’s revenue.

While gaming/gambling comprise the largest industry in the state, other industries include:

  • Mining, with Nevada as the Leading Producer of Gold and Silver in the U.S.
  • Agriculture including Cattle and Sheep
  • Manufacturing, mostly Small Businesses

However, Nevada’s service industries concentrated in tourism account for nearly a third of the state’s total gross product.

COVID-19 Impact on State Employment Differences

The Centers for Disease Control and Prevention guidelines to prevent the spread of COVID-19 include avoiding close contact with other people. Industries that require workers to be near other people are more heavily impacted by COVID-19. Also, various “stay at home” directives dramatically reduced the flow of tourists to cities like Las Vegas. The state of Nevada has borne the brunt of these types of restrictions due to the outsize influence of tourism, gaming/gambling, and hospitality upon its economy. State employment differences between Nebraska and Nevada show how industry diversification can benefit an economy from outside shocks.

What Should Job Seekers do About State Employment Differences?

Job seekers should review how state employment differences reflect the local economy’s diversification of industries. States with diverse economies are less likely to face significant issues due to shocks to their economy such as COVID-19.

Job seekers should also consider utilizing robust career services. These services will also help them leverage online tools to enhance their personal brand and increase their success in the job market. GMS Global Career Services available for job seekers include a number of helpful resources. A Career Services Intake will identify the job seeker’s needs, questions, and goals. As a result, GMS Global Career Services will be able to create a unique plan for their job search.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract qualified new hires. As a result, our team can use GMS Global Career Services to help job seekers find and access these programs in the states and industries that match their goals.

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

Contact our experts online to discuss how state employment differences may impact your job search, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Corporate Relocation Corporate relocation tips Talent Mobility

Return Safely to Workplaces: Resources Provide Guidance for Employers

Reduce the spread of Coronavirus disease 2019 (COVID-19) in the office. Ways to prevent the transmission of disease can be done by wearing a surgical mask.

One of many employer challenges with respect to the COVID-19 pandemic is finding resources to help them determine how employees can return safely to workplaces. Understanding how the disease is transmitted is daunting, as scientific inquiries may show differing results or may change over time. As a result, concrete knowledge on surface transmission is hard to come by. For example, on May 20, the Centers for Disease Control and Prevention (CDC) published an update to their website that notes the virus does not spread easily from contaminated surfaces or objects. Prior to May 20, the CDC said it may be possible to spread the virus through contaminated surfaces.

What are the Agencies that Oversee Safety in the Workplace?

Employers are aware of several requirements to ensure safety in the workplace and on the job. In the United States there are several agencies that oversee a variety of workplace and job-specific laws and regulations. A few of these agencies that may provide guidance for employees to return safely to workplaces include:

CDC

National Institute for Occupational Safety and Health (NIOSH) is a federal agency that conducts research and develops recommendations to prevent injuries and illnesses that may arise from work. The CDC is the parent organization that oversees NIOSH.

U.S. Department of Labor

Three U.S. Department of Labor (DOL) agencies are responsible for administering and enforcing laws in place to protect worker’s health and safety:

Occupational Safety and Health Administration (OSHA) is a federal agency that ensures safe and healthful working conditions through administration and enforcement of the Occupational Safety and Health (OSH) Act of 1970.

Mine Safety and Health Administration (MSHA) is responsible for overseeing administration and enforcement of the Federal Mine Safety and Health Act of 1977.

Wage and Hour Division (WHD) administers and enforces laws related to the Fair Labor Standards Act.

States

State Plans are OSHA-approved and apply to a specific U.S. state or territory. These programs focus on workplace safety and health. There are 22 State Plans that cover both the private sector and government workers. There are also 6 State Plans that cover only government workers.

For example, the state of Arizona operates a State Plan that covers most private sectors workers and all government workers through the Arizona Division of Occupational Safety and Health (ADOSH). The Industrial Commission of Arizona is the parent organization that oversees ADOSH.

What Does Return Safely to Workplaces Mean for Employers?

Returning employees to workplaces may have broad implications for employers depending on their specific situation. Some employers may need to reconfigure workplaces, while others may need to supply protective equipment. The research surrounding COVID-19 continues to provide new information, but some basic information is now somewhat established. As a result, a few organizations are taking what is known about the disease and are publishing guidelines. These guidelines serve as a resource for employers as they endeavor to help employees return safely to workplaces.

Resources to Help Employees Return Safely to Workplaces

CDC, Federal Emergency Management Agency (FEMA), and The White House have jointly created a resource for the nation, “coronavirus.gov.” This online portal includes information and links to some of the latest information on topics related to COVID-19.

NIOSH has published several topics related to workplace safety and COVID-19, including information sheets, industry-specific resources, and factsheets.

DOL Resources

DOL has created a reference page of coronavirus resources that cover many topics administrated by its several agencies including how to return safely to workplaces. These topics cover issues relating to:

  • Workplace Safety
  • Wages, Hours, and Leave
  • Unemployment Insurance Flexibilities
  • Support for Dislocated Workers and States (workers laid off as a result of COVID-19)
  • Job Corps Students
  • Injured Federal Workers
  • Federal Contractors
  • Foreign Labor Certification
  • Flexibilities for Mine Operators
  • Supporting Workforce Needs in the Agricultural Sector
  • News and General Resources

OSHA has published guidance on preparing workplaces to address COVID-19 issues. OSHA has also created a website designed specifically to provide timely information for workers and employers about the pandemic and its effects on workplaces. Various employment issues, and how to return safely to workplaces.

MHSA has published an information sheet online to address questions surrounding mine operators, workers, and COVID-19.

WHD has issued several Fact Sheets, Questions/Answers, Posters, and other resources to help workers and employers understand how they will benefit from the Families First Coronavirus Response Act (FFCRA). FFCRA also includes:

  • Emergency Paid Sick Leave Act
  • Emergency Family and Medical Leave Expansion Act

Many U.S. states have also issued guidelines under their State Plans.

Human Resource Service Companies and Organizations Promote Initiatives to Return Safely to Workplaces

Several leading human resources services companies have created a “Safely Back to Work” initiative. This alliance will let the companies collaborate on initiatives. As a result, this will help employers as they work with employees to return safely to workplaces. Randstad N.V. published an open letter inviting other organizations to join this alliance. The alliance has published a white paper, “Safely back to work in the new normal” that presents a disciplined approach to work during the COVID-19 pandemic. The white paper includes a process to develop protocols, controls, and preventive measures across countries and industries.

While a COVID vaccine is in development, there are currently vaccines for other diseases that impact the workplace, such as influenza. HelpAdvisor.com has published a flu vaccine resource guide, and MedicareAdvantage.com provides general seasonal health information for seniors. Information about influenza and other communicable diseases should be shared with employees.

What Should Employers do?

Employers should consider a thorough approach to working with employees to return safely to workplaces. They should research available resources to identify what will work best for their specific situation. Employers should work with a Relocation Management Company (RMC) that has experience with corporate relocations and individual employee moves. RMCs with knowledge and experience can help employers understand how to identify valuable resources and specific workplace issues they should address as they develop appropriate plans.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to arrange for group moves of offices, employees, and equipment. Our team can help your company understand how identify and address all of the aspects involved in helping employees return safely to workplaces.

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. GMS relocation industry and technology experts are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning how to help employees return safely to workplaces, 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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