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USA Operations Centers Relocation Allowance May 2017
Not Applicable
The Relocation Allowance is provided to help offset miscellaneous relocation expenses not covered in other aspects of the relocation benefit package.
The amount of the allowance is equivalent to six weeks of the employee’s new annual salary for homeowners and three weeks’ salary for renters. The allowance is based on the status (homeowner or renter) of the primary residence in the departure location at the time the employee initiates the relocation process.
If the employee receives a merit increase between the date relocation is initiated and the effective date of transfer, a supplemental payment can be processed based on the difference in the original salary and the new salary. The employee should notify his/her relocation counselor or recruiter and provide documentation of the adjusted salary.
The benefit will be processed after the relocation counselor receives the required forms from the employee. The Relocation Allowance will be direct deposited in the first or second pay period after the employee begins the relocation process.
Possible uses for the Relocation Allowance
Repairing or neutralizing (eliminating personal décor and painting the walls in colors that will appeal to the majority of buyers) the current home for a quicker sale.
Security system contract obligations
A deficit resulting from the sale of the current home
State or Federal taxes on move benefits (at income tax filing time)
Income tax preparation fees
Utility deposits in the new location
Phone/cable installation
Pet care/boarding during house hunting trip
Automobile transfer/licensing
Notary fees
Difference due at closing of new home purchase because of taxes withheld on discount points/loan origination fee
Tax Information The Relocation Allowance is considered compensation and taxes are withheld at the Supplemental Tax Rate. See Relocation Tax Policy.
The employee must send the required forms to the relocation counselor before the payment is authorized by the counselor or recruiter.