Relocation expenses are costs incurred when moving, often for a new job. Companies may offer to cover expenses such as moving, travel, home buying/selling, storage, and temporary housing. It’s important to understand what is covered and keep receipts for reimbursement.
Relocation expenses are expenses incurred as a result of a move. This generally refers to the relocation of a person as a result of a new job. Many companies offer to pay for a person’s relocation expenses as an offer of employment. These expenses may include moving expenses, travel expenses incurred while traveling from the old location to the new location, buying and selling a home, temporary storage, and temporary housing. Covered expenses vary from company to company, so it is important to check what relocation expenses your employer covers and how these expenses will be paid for.
Moving expenses can include the cost of hiring professional movers or the cost of moving supplies purchased so that an individual can move on their own. Many times, the new employee can choose whether he wants to transfer professionally or do it on his own. Having professionals do the work is an option that many people choose, because sometimes it’s easier than having to worry about purchasing supplies, packing and loading boxes. Clearly understanding what qualifies as covered relocation expenses and what is not important because a person could be responsible for costs incurred that are not covered.
Travel expenses are another expense that you may incur as a result of relocation. Moving for a new job often requires traveling long distances, requiring hotel stays and vehicle expenses. One must ensure that all receipts for travel expenses are retained so that they can be returned for reimbursement.
Some companies offer home buying and selling assistance as part of a relocation package. This assistance varies from company to company and can be as simple as providing a directory of realtors or as involved as paying closing costs and other costs. The use of these services is usually optional and must be sought by the new employee.
After a new employee has arrived in their new city, temporary accommodation and storage of goods may be necessary. Some relocation packages provide for reimbursement of these expenses, or a place for the new employee and her family to stay. Care must be taken in observing the time limits placed on this type of benefit.
Many companies cannot pay relocation expenses until an individual is on the payroll and all required documentation has been submitted to the company’s human resources department. This should be taken into account when planning your move so that all expenses are budgeted for and covered until reimbursement is received. Keeping track of all receipts and correspondence can help speed up the process.
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