Relocation Assistance: 101 Guide

What Is Relocation Assistance?

Relocation assistance refers to the support provided by employers, government agencies, or other organizations to help individuals move from one location to another. This support can come in various forms, including financial aid, logistical help, and resources to ease the transition.

Once your relocation assistance is sorted, one of the first things you’ll want to do is secure a permanent address. This is essential for all your documentation, utilities, and other formal processes.

Types of Relocation Assistance

1. Corporate Relocation Assistance

Many companies offer relocation packages to employees who are moving for work. These packages can include:

• Moving expenses (packing, transportation, storage)
• Temporary housing or housing stipends
• Travel costs for house-hunting trips
• Spousal employment assistance
• Tax gross-up to cover the tax burden on relocation benefits

According to a report by Top Echelon, approximately 63% of companies offer some form of relocation assistance to employees.

2. Government Relocation Assistance

Government agencies, such as the California Department of Transportation (Caltrans), provide relocation assistance to individuals displaced due to public projects. This can include:

• Moving and related expenses
• Reestablishment expenses
• In-lieu payments

These programs aim to minimize the hardship of displacement and ensure fair treatment of displaced persons.

3. Federal Relocation Assistance

Federal employees may be eligible for relocation assistance under the Federal Employees Relocation Assistance Act. Benefits can include:

• Home sale and purchase assistance
• Temporary quarters subsistence expenses
• Shipment and storage of household goods

The U.S. Office of Personnel Management provides guidelines for these benefits.

How Does Relocation Assistance Work?

Relocation assistance typically involves the following steps:

• Eligibility Determination: Confirm if you’re eligible for assistance based on your employment status or the nature of your move.
• Benefit Package: Review the benefits offered, which can vary depending on the program.
• Documentation: Keep records of all moving-related expenses, as they may be required for reimbursement or tax purposes.
• Reimbursement or Direct Payment: Depending on the program, you may receive a lump sum, reimbursement for expenses, or direct payment to service providers.

As part of the moving process, updating your address with important institutions is a must. Our change of address checklist
will help you keep track of all the necessary steps to ensure your move goes smoothly.

Is Relocation Assistance Taxable?

Yes, in many cases, relocation assistance is considered taxable income. However, some exceptions apply:

• Employer-paid moving expenses: Under the Tax Cuts and Jobs Act, moving expenses reimbursed by an employer are generally taxable.
• Tax gross-up: Some employers provide additional funds to cover the tax burden on relocation benefits.
• Exclusions: Certain relocation expenses, like those related to a qualified move, may be excluded from taxable income.

It’s important to consult with a tax professional to understand the tax implications of your relocation assistance.

How to Ask for Relocation Assistance

If your employer doesn’t offer relocation assistance, consider negotiating for it. Here’s how:

• Research: Understand the typical relocation packages in your industry and location.
• Prepare Your Case: Highlight how your move will benefit the company and why assistance is justified.
• Be Specific: Clearly outline the types of support you need, such as moving expenses, temporary housing, or travel costs.
• Be Open to Negotiation: Your employer may offer a different package than expected, so be flexible.

Relocation Assistance Services

Several companies specialize in providing relocation services, including:

• IMPACT Group: Offers personalized relocation coaching and support services.
• Nelson Westerberg: Provides comprehensive moving and relocation services for individuals and businesses.
• Top Echelon: Offers relocation assistance programs tailored to the needs of employers and employees.

These services can help streamline your relocation process and ensure a smooth transition.

FAQs

1. What is relocation assistance?

Relocation assistance is support provided to individuals moving for work or due to public projects. It can include financial aid, moving services, and other resources.

2. Are relocation assistance benefits taxable?

Yes, in many cases, relocation assistance is considered taxable income. However, some exceptions apply.

3. How do I ask for relocation assistance?

Research typical packages, prepare your case, be specific about your needs, and be open to negotiation.

4. What services do relocation assistance programs offer?

Services can include moving expenses, temporary housing, travel costs, and spousal employment assistance.

5. Where can I find relocation assistance programs?

Programs are offered by employers, government agencies, and private companies specializing in relocation services.