When companies offer a umzugsvergilch they are offering to cover some of an
employee’s moving expenses. This can include anything from financial help with
selling or buying a new home to paying real estate commissions and legal fees. This
type of package is used by multinational companies to attract top talent and ease
the burden on employees who must relocate for a job. It is important for HR and the
employees to negotiate a relocation package that meets their needs.
The type of relocation package an employee receives will depend on several factors,
including the distance from their current home to their new work location, the size of
their family and the amount of belongings they must transport. A common relocation
package includes paying for professional movers, packing services and the costs of
materials for the move, such as boxes and tape. It also usually covers the cost of
travel to their new home, including airfare and gas or train tickets. It is not
uncommon for companies to include a temporary housing allowance, which may be
in the form of hotel stays, corporate housing or rental assistance.
Other types of expenses that can be included in a relocation package are financial
help with buying or selling a home, mortgage loan origination fees and closing costs.
Some packages even include help finding schools for children or spouses in the new
area. Some employers will also provide help with securing a spousal work visa. If the
company requires an international relocation, a larger package may be offered to
cover the costs of extracurricular activities for the family, language training and
A company’s relocation policy should specify what will be paid for and under what
circumstances it can be claimed. It should also be clear whether a relocation
allowance is tax-deductible. Some companies prefer to provide a cash relocation
package, which is not taxable. However, this approach has its downsides, as it puts
the burden on the assignee to self-manage their move and can add significant stress
to an already stressful situation.
For these reasons, it is better to partner with a third-party provider of relocation
services to handle the entire process. These companies have experience negotiating
with suppliers and can help you save money on your moving expense by selecting
the most reputable services at a lower price. In addition, they can help you avoid
unnecessary fees. They can also track and record relocation-related expenses for
you. They will then submit these records to your accounting department for
reimbursement. You can then use the records as proof of the relocation expenses
you incurred to claim your tax deductions.