Whether you're moving for work or you're coordinating a move for an employee (or several employees), planning an employee relocation can be challenging. Our Complete Guide to Employee Relocation will answer all your biggest questions about relocating employees, from what costs are covered in a relocation package and what employee relocation companies can do to help to how to ask for a relocation package.
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1. What Does A Relocation Allowance Cover?
Start by understanding what costs are most commonly covered by a relocation allowance.
2. Other Moving Expenses That May Be Covered
Learn more about what additional expenses you can ask your employer to cover.
So your employer—new or current—has asked you to move, and they’ve offered to cover some of the expenses. That’s great! But what does that mean for your moving budget?
It can be difficult to figure out what exactly counts as a moving expense on your own, and we definitely don’t recommend trying to guess. If you aren’t sure which expenses your employer will cover, you should always ask. They should be able to provide you with a clear outline of what precisely they will cover throughout the relocation process.
Every relocation package is different, so it’s important to understand what your employer will or won’t pay for before you spend valuable time researching options and making decisions. Knowing what is considered a moving expense can also be a good starting point for negotiating adjustments if there are additional items and costs you feel should be included in your relocation package.
In this section of the Complete Guide to Employee Relocation, we’ll take a look at what a relocation allowance typically covers, as well as some additional costs some employers might count as moving expenses.
What Does A Relocation Allowance Cover?
Though what counts as “moving expenses” will vary from company to company, these expenses are the most commonly covered by a moving allowance:
- Hiring movers or a long-distance shipping company
- Renting a moving truck
- Purchasing moving insurance
- Packing materials
- Rental of a storage facility
- Travel expenses&
- Temporary lodging, such as a rental, company housing, or a hotel
Your employer may cover some or all of these expenses in the form of a lump sum payment, reimbursement for submitted expenses, or by connecting you directly with an employee relocation company. The value of what is covered will typically depend on the distance of the relocation, as well as your seniority within the company and within your career path.
Learn more about relocation packages and what is commonly included.
Other Moving Expenses That May Be Covered
These are expenses that may be covered by some companies. If they are not included but you feel they should be, you can also ask for them to be covered:
- House-hunting trip expenses such as lodging, dining, and travel expenses.
- Home buying and selling costs, such as closing costs, real estate commissions, reimbursement for lost profit from a quick home sale, title search costs, attorney fees, statutory costs, appraisals, utility transfers, and inspections.
- White glove or full packing services
- Lease break coverage, in the event that you have to break a rental agreement early
- Job services for employee partners—some employers opt to provide job search assistance for spouses.
- School relocation assistance for children
- Childcare services
- State driver’s license fees
- Language classes
- Car rental
TSI TIP: If your company won’t cover all of your moving expenses, you should still save your receipts. Some moving expenses can be deducted on your taxes, depending on which state you live in. Learn more: IRS Moving Expense Deductions
Conclusion
What counts as moving expenses and what your relocation allowance covers can vary from company to company, so it is best to discuss your relocation package with your employer directly. With that in mind, you can typically expect the following expenses to be included:
- Hiring movers or a long-distance shipping company
- Renting a moving truck
- Purchasing moving insurance
- Packing materials
- Rental of a storage facility
- Travel expenses
- Temporary lodging, such as a rental, company housing, or a hotel.
