Moving to a new area for a job can be an exciting time in anyone’s life. Many companies will pay for some sort of relocation package for their employees if they have to move to a new area for the job they were hired for. This can be a great opportunity for a person to experience a new city and area. During this time, many people are unsure of how to fully take advantage of relocation benefits offered by companies.
Here are several tips for anyone that is having to go through a relocation process and how to make the most of it:
Companies have a human resources department for a reason. If you have been hired on at a company that offers relocation assistance be sure to take advantage of it. Many people will only relocate once or twice during a career, so it is completely normal to have some questions during the process. Some companies will have much more generous relocation packages than others. As a new employee, it is important to understand all of the benefits that you qualify for in your new position. If you are unsure of how the relocation works at any point during the process, be sure to ask questions of the new company you are working for.
Never Rush a Decision
Many people get overly excited about landing a new job in a city they want to move to. Although it is an exciting time, it is important to never rush a decision that is going to affect you many years down the road. There are many choices for housing in different areas around the country. If you are wanting to purchase a home, be sure to spend the appropriate amount of time researching homes in the area that you will be living in. For many people, a home will be the largest purchase that they make in their lifetime. This means that a bad or rushed decision here can end up costing a person tens of thousands of dollars. Be sure to always take your time when making long term housing decisions during a career relocation.
Think About Taxes
Relocation benefits can vary greatly depending on the company. What does not vary is the fact that relocation benefits are taxed differently than normal income. Due to the wide variety of benefit packages offered, there is no cut and dry rule for people that are moving to a new job as far as taxes are concerned. In this case, it is probably best to get the advice of an expert in the area of taxes if the relocation package is quite large. The worst thing that could happen to a new employee is getting hit with thousands of dollars in taxes that were unexpected. By doing the homework on the front end, this unknown tax liability can be prepared for or avoided depending on the situation.
Many people make assumptions during the relocation process with a company. However, it is always a good idea to never make assumptions in your situation. Every company is going to have different policies surrounding their relocation packages. This means that a new employee must read the fine print in his or her package in order to fully understand what they qualify for. Just because an employee thinks they qualify for something does not mean that they do. It would be bad to go ahead and relocate and find out that you are stuck for the bill on certain services. Another point to ask about is if you leave to go to work for another company. Many companies require employees to pay part or all of the relocation services back if they leave during a certain time frame. This can be tens of thousands of dollars in many cases, so it would be wise to fully understand the liability if that were to happen.
Overall, relocating to a new city and company is an exciting time in anyone’s life. However, it is important to fully understand the process and how to prepare for it. There are many decisions that must be made, and it is important to never rush a decisions that will affect you for the next several years.