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The Lump Sum Approach to Relocation Costs Report

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A considerable number of companies help their employees cover the costs of moving to new worksites. In the past, employers either paid for the services directly or collected receipts to reimburse the employee. Recent tax law changes made these expenses taxable to the employee. This change, along with a desire to avoid inequi es inherent with tradi onal reimbursement programs, has led many employers to implement lump sum allowances. Using a lump sum program, employers give employees a single payment to cover various expenses at the start of the reloca on process. This approach helps organiza ons control costs and reduce the administra ve burden of processing mul ple expense reports for an employee's reloca on. Most lump sum programs share these a ributes: With compe on for talent higher than ever, employers need to be secured with a top- notch lump sum policy. Motus analyzed 800 lump sum reloca on policies to find out what U.S. employers include. This report covers common reloca on policies that benefit employees: home finding, temporary living and final move. COVERED RELOCATION COSTS IDENTIFIED prior to move, simplifying the budge ng process and controlling costs EMPLOYEE FUNDS RECEIVED UP-FRONT, elimina ng the need to fund expenses themselves while wai ng for reimbursement EMPLOYEES EMPOWERED to use the funds to best suit their circumstances

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