Domestic Short Term Assignments Best Practices: White Paper
GMS has recently published a new white paper listing domestic short term assignments best practices and tax considerations. Companies are increasingly using these assignments for special projects, corporate initiatives, and business opportunities. By leveraging the willingness of current employees to accept domestic short term assignments, companies can respond to changing priorities quickly and efficiently.
What is a Domestic Short Term Assignment?
A domestic short term assignment is a temporary assignment or job that lasts for one year or less, according to IRS definitions. Often the company’s relocation policy is focused on benefits and programs for employees and family members moving to a new location. Transferees that accept domestic short term assignments will need a different range of benefits and support, since they will return to their home after the assignment is complete. They may need assistance with travel, temporary housing options, or transportation solutions while at the new location.
As a result, relocation programs should address the specific needs of transferees who take short term assignments. By following domestic short term assignments best practices, companies will accrue the greatest benefits, while transferees will receive the best experience.
Domestic Short Term Assignments Best Practices: 3 Examples
A review of domestic short term assignments best practices shows it is important to examine the transferee’s assignment experience in detail. Such a review will help the company manage costs and ensure the best experience for the transferee.
For example, three specific topics highlight the importance of domestic short term assignments best practices to address points that relocation policies usually do not address:
1. Return Trips During Assignments
Domestic short term assignments best practices for return trips is to provide two trips home for every 30 days of assignment. Relocation policies usually do not include a series of return trips home, since the transferee is relocating to the new location.
2. Domestic Short Term Assignments Best Practices for Local Transportation
Domestic short term assignments best practices for local transportation is to provide one of the following two options, whichever is lowest cost:
- Short term leasing option
- Shipment of transferee’s vehicle for duration of assignment
Note: longer term assignments should provide local rental vehicle
3. Property Management at Origin Location
Domestic short term assignments best practices for property management at origin is to offer this option to assignments greater than 6 months. Options typically include the lowest cost of either:
- Property management reimbursement or direct bill
- Stipend or housing differential
What Does This Mean?
Companies should follow domestic short term assignments best practices. This will ensure they can obtain the greatest benefit from this approach while controlling costs. This will help the company be able to respond quickly to changing business priorities.
How Can Employers Learn About Domestic Short Term Assignments Best Practices?
Employers should work with a qualified and experienced Relocation Management Company (RMC) to learn about domestic short term assignments best practices. Companies should review their relocation policy to ensure it follows industry best practice for relocation benefits provided to employees who take domestic short term assignments.
GMS tailors each client’s program based on specific budgets, needs, and compliance. As a result, clients can offer an industry-leading relocation program designed to fully meet the needs of these employees. This helps ensure successful assignments and increases employee satisfaction.
GMS’ team of corporate relocation experts has helped thousands of our clients understand how to incorporate domestic short term assignments best practices into their relocation programs. Our team can help your company design a relocation policy that provides the best experience for employees during their temporary assignments.
GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.
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Contact our experts online to discuss how your company can learn more about domestic short term assignments best practices, or give us a call at 800.617.1904 or 480.922.0700 today.