Relocating an employee can be a complex, stressful process, and employers should consider many factors when asking someone to move to a different office. Parsifal Corporation, a worldwide leader in relocation auditing and consulting, describes these often-overlooked but important factors to consider when creating an employee relocation package.
Tax Changes:
If a relocating employee moves to a new municipality, county, or state, he or she may end up in a very different tax situation. In order to keep compensation fair, employers should take new tax rates, including those for sales and property taxes, into account when evaluating salary at the new location.
Spouse Employment:
Relocating employees often have working spouses. Depending on the spouse’s industry, he or she may have difficulty finding a new position after the move. In order to make sure the employee’s family does not experience financial hardship, employers should account for lost spousal income in the first year after a move.
For more information about planning employee relocations, be sure to read Part 2.
Tax Changes:
If a relocating employee moves to a new municipality, county, or state, he or she may end up in a very different tax situation. In order to keep compensation fair, employers should take new tax rates, including those for sales and property taxes, into account when evaluating salary at the new location.
Spouse Employment:
Relocating employees often have working spouses. Depending on the spouse’s industry, he or she may have difficulty finding a new position after the move. In order to make sure the employee’s family does not experience financial hardship, employers should account for lost spousal income in the first year after a move.
For more information about planning employee relocations, be sure to read Part 2.