Moving to a new city for work is exciting, especially if your job pays for your move. Here are some industry expert answers to questions people ask when they have to move for a new job.
We’ve moved hundreds of executives and their families over the last 10 years, and have seen and managed diverse relocation policies. After years of working on the corporate side of relocation, we were tired of being told what we could and couldn’t say to help families we relocated. That’s why we help consumers directly.
We’re here to help you have a stress free move while keeping costs as low as possible. Reach out today to find out how services can help make your life less stressful.
How much relocation assistance should I ask for?
Large companies often have set relocation policies. These packages depend on position, if you rent or own, family size, and other factors. If your company has no policy, there is often more negotiating room. However, these moves are usually self managed and stressful. See below for more info on negotiation. You can tell a lot about a company by its relocation policies.
What is a typical relocation package amount?
Relocation package amounts range anywhere from $5,000 for a DIY move, up to $75,000+ for a professional move with a large family. Most relocations come in between $15,000 and $50,000. Move costs depend on the weight of your household goods shipment, the distance moved, how many cars you ship, and temporary housing costs.
The amounts below are rough estimates based on average industry costs. These are likely higher with inflation, and are estimates only. The actual cost of your move depends on your personal situation.
- $5,000 – $15,000 is an entry level management position or similar. This is a DIY move, you will likely not be able to afford professional movers or temporary housing. These moves often have out of pocket costs, and are stressful.
- $15,000 – $30,000 is generally for managers or mid range employees. At $30,000 you could likely handle your entire relocation with professional services. Especially if you’re strategic about your household goods shipment weight.
- $30,000+ is for large families or executives, and may include homeowner benefits. These benefits are for employees moving out of a home they own. This includes realtor help, and sometimes even closing costs. Although generous homeowner benefits have become less common in recent years.
Some companies offer reimbursem*nts in addition to your relocation lump sum. For example travel reimbursem*nt, household goods move reimbursem*nt, or even some time in temporary housing. It’s important to factor these extras in to the overall amount offered.
Can I negotiate my relocation package?
Some companies will negotiate lump sum amounts if you ask, others may have set amounts they can’t deviate from. But it’s always worth asking, you’d be surprised. The same goes for fully assisted moves. Even though something might not be in your package, if it makes sense for your family, there’s a chance it can be covered.
Do I have to pay taxes on my relocation?
It’s important to ask if your relocation package is tax assisted, also known as “gross up.” As of the 2018 tax law changes, moving for work is now taxable income. If your package is not tax assisted, plan to set aside anywhere from 30% to 45% of your relocation cost in taxes. Please note we are not tax professionals. If you move for work and are concerned about taxes it’s important to speak with a tax professional since taxes are different for everyone.
What are typical relocation expenses paid by an employer?
A typical lump sum is funds only. With no other perks you can expect a self managed move, and likely some out of pocket costs. An all inclusive relocation package usually covers professional movers, auto shipments, temporary housing, and travel to your new destination. These relocation packages can also include help with selling your home, organizing help before your pack date, home finding help, pet fees, and more. These will all depend on your company.
Do you need help finding a home, or negotiating your relocation package?
Or how about help packing, unpacking, checking into housing, or transporting your pet?
We have over 10 years of industry experience working with relocation management companies for Fortune 100 clients. We started PNW Relocations because we were tired of companies restricting how we could help our customers. That’s why we branched out on our own, to help clients directly when their company may not be.
Let us help make your move stress free. Contact us today to find out more, and ask about our free services when you use our relocation certified realtor to buy or sell your home.
