Recent challenges in the real estate and financial markets has impacted corporate relocation significantly. Corporate decision makers are adjusting policies in response to this new reality. As many as fifty percent (50%) of Companies state they will consider modifying their policies to include a managed cap or lump sum program.
Compass Relocation Group offers its Lump Sum Solutions program, a managed program that provides benefit to both the employee and Company. The Lump Sum Solutions program ensures each employee is assigned an experienced, caring and dedicated Counselor to provide guidance to the employee and family resulting in a smoother transition, alleviating time spent on relocation activities instead of focusing on the new position. In addition, many of the benefits in a relocation policy result in taxable income for employees. The current best practice is to combine benefits that are considered taxable income to the employee into one lump sum amount. Taxable items include, but are not limited to: house hunting trips, temporary housing, return trips to the origin prior to final relocation, storage of household goods beyond 30 days, new home closing costs, some final move expenses and other types of family assistance. Most Companies pay the tax impact or “gross-up” as it is commonly referred to for these benefits. Whether the Company pays the tax gross-up, or reimburses on a “net check” basis, CRG will make the best use of dollars allocated to relocation benefits.
Typically, the household goods shipment is provided as a separate component and considered excludable from income when paid to a third party provider. A managed lump sum program plus household goods shipment provides sufficient benefit to cover the relocation, while encouraging the employee to be an active partner in how relocation dollars are spent. The Lump Sum Solutions program is an excellent way to manage overall relocation costs, provide additional services and advocacy for the employee and also reduce requests for exceptions.
CRG realizes relocation may be a small piece of a very large Human Resources job for Companies. By using CRG’s Lump Sum Solutions program HR Staff Resources or other Departments are removed from management of the day-to-day questions from employees regarding relocation, allowing more time to focus on other pressing projects and issues.
CRG’s Lump Sum Solutions Program includes:
- Value pricing on many services to help extend the lump sum amount.
- An absolute guaranteed low price moving service package, to include packing / unpacking, valuation coverage, shipping and delivery of household goods*.
- Lump Sum policy development to assist in consistent application of program.
- Limited cost / expenses management process.
- Professional marketing assistance in selling the origin home, and effective, experienced counsel on the purchase of a new home at destination.
- Family support services as needed and authorized by Company
- Expense tracking services with industry leading software for tax, management, appraisals, and quality process delivery if needed.
* Based on professional van line competitive market pricing with corporate discounts. Specialized handling of small shipments not requiring traditional moving services is available also.