Many employers offer new hires bonuses or up front cash payouts for relocation cost. In other cases, companies offer to reimburse new employees for the costs of their move. However, your new boss may not extend any sort of moving expense reimbursement package. In that case, you need to know how to negotiate with your new employer to get reimbursed for your relocation cost. It is important that you know what steps to take to ensure your new company repays you for the money and time spent moving. Read on to learn how to negotiate relocation cost reimbursement.
Do Not Confuse Reimbursement With A Bonus
As part of your relocation cost negotiations, it is important that you know the difference between reimbursement and a bonus. A bonus is an incentive designed to entice candidates to apply for a job. The bonus is typically a fixed amount that you agree to before relocating. This may or may not cover all costs associated with a move. A reimbursement, however, covers every relocation cost. This includes charges accrued during the house hunting process besides the expenses of moving. Before you begin negotiating for relocation cost reimbursement, it is important that you understand what you are asking for.
Know The Numbers
When you begin negotiating relocation cost reimbursement, ensure that you know your numbers. In other words, prepare a report of the projected costs of your move. If your company typically offers relocation cost reimbursement, they should already have an idea of the expenses. However, you will need to provide your company with the estimated costs if repayment is not standard. Provide your cost projections to improve your chances of getting a reimbursement agreement. Your new employer will agree to cover expenses if they have a general idea of the costs. Consider researching estimated costs on a valuation service to best estimate your requirements. Know the numbers as you start relocation cost reimbursement negotiations so you can provide a realistic projection of expenses.
Ask What Packages They Offer
Additionally, ask questions regarding the company’s history of relocation cost reimbursement. Start the process by asking if your employer provides services or repayment for moves. Many companies offer prospective employees assistance to help them sell their home. Though a reimbursement package may not be standard, that does not mean your employer has never offered one. Find out if the company has offered moving expense reimbursement in the past. Ask if your employer would be willing to cover a portion of your expenses if not the entire bill. When negotiating for relocation cost reimbursement, ask your employer what packages they have offered to other employees.
Leverage The Tax Law
As you negotiate to be reimbursed for relocation cost, leverage the tax law. In the past, the IRS allowed employees who relocated for work to claim those expenses as tax deductible. That is no longer the case. However, employers still receive tax deductions for covering employee relocation costs. As you negotiate, mention that possible tax breaks your employer can take advantage of. While only certain moving expenses qualify for a deduction, the overall tax break may serve as sufficient incentive. More specifically, the expenses must clearly be related to relocation tied to the business. Leverage the tax law in your favor when you negotiate relocation cost reimbursement to provide your employer with an incentive to cover your move.
Get A Receipt
The final step to negotiating relocation cost reimbursement is to get a receipt for every expense accrued from moving. While your employer may have agreed to cover the costs of your move, they will not pay anything until they see proof of the expenses. Even if you secured a deal through your projected estimate, your employer needs the exact cost in order to reimburse you. Ensure you get receipts from your real estate agent, the movers, and anyone else involved in the move. Presumably, your employer provided you with a list of approved expenses. You need the corresponding receipts that prove the cost of those expenses. To ensure you are reimbursed for relocation cost, get receipts for every expense along the way.
Most employers nowadays offer some kind of relocation cost reimbursement package. As you negotiate a repayment deal, learn the difference between a reimbursement and a bonus. Then you can prepare a projection of the costs associated with your move to provide your employer. Ask questions about the company’s history of reimbursing employees for moving expenses. Leverage the tax law to your advantage by mentioning the incentives of reimbursement. Finally, be sure you get receipts for all moving expenses so your employer can reimburse you appropriately. Ensure you are aware of all employee incentives offered to make your move easier. Use this guide to negotiate relocation cost reimbursement with your new employer.