MANAGEMENT RELOCATION BENEFITS OVERVIEW

Transcription

1 MANAGEMENT RELOCATION BENEFITS OVERVIEW

2 TABLE OF CONTENTS Introduction...2 Eligibility...3 Time Limit on Relocation Benefits...3 Why Providence Uses a Third Party Relocation Company...3 Home Finding Trips...4 Home Finding Assistance...4 If You Plan to Buy In the New Location...5 Apartment Searching...5 Sale of Old Residence - Home Marketing Assistance...5 Travel to the New Location / Final Move Trip...6 Making Travel Plans...7 Temporary Housing...7 Pets...7 Moving Household Goods...7 Rental Truck...9 Tax Implications...9 Expense Reimbursement Process Contact Information

3 Congratulations on your new position! We are pleased to provide you with this guide outlining your relocation benefits. It also contains some suggestions for getting your relocation off to a smooth start. We understand that you are undertaking a significant life change that will affect you and your family. Providence believes in taking care of people employees and patients alike. Therefore, we are extending professional, dedicated resources to assist you during this transition. Your move will be handled with the utmost care. To assure the best possible experience, Providence utilizes the services of Global Mobility Solutions (GMS) a full service relocation company with headquarters in Scottsdale, Arizona. GMS will administer, coordinate, and support you and your family during your move. If you have any questions, your Relocation Coach will be happy to provide answers to your individual concerns. Please call immediately if you haven t already been in contact with you Relocation Coach. Working with GMS is American Escrow and Closing Company (AECC) who coordinates specific parts of your relocation including expense reimbursement. Once you have spoken with your Relocation Coach, within a few days you will receive a packet of information from AECC, including expense reimbursement forms. Please review this guide. Do not incur any expenses you expect to be reimbursable until you have read this policy. Before beginning your relocation there are several things that must be done: 1. Your recruiter must initiate your relocation with GMS. 2. The Relocation Repayment Agreement must be completed and signed by you and returned to your recruiter. It is your responsibility to turn in the form to your recruiter. This form must be completed prior to receiving any relocation benefits. 3. Most importantly, talk to your Relocation Coach before you interview, or make a commitment to realtors, van lines or corporate housing providers. Your Relocation Coach is an expert in the relocation industry and provides you with deep discounts. Please call your recruiter as soon as possible and your relocation will be initiated. Once your relocation gets under way, we know you will be extremely busy with both your new job and your relocation. We also know you will have a lot of questions, so please call GMS whenever you need further information or clarification. Best wishes in your new job! We hope you and your family are soon settled into and feeling a part of your new community. 2

4 Eligibility Financial assistance is limited to the employee, the employee's spouse/partner and dependent children, who permanently reside with the employee as of the date he/she accepts Providence's formal request to relocate. Acquaintances, roommates, household employees or friends are not eligible or covered under this procedure. If your spouse or another member of your family receives relocation support from another entity, please talk to your recruiter as your award may be reduced. All reimbursable expenses must be completed and family and household belongings must move within one year from the transfer or hire date per IRS guidelines. Should you voluntarily cancel the move prior to beginning employment with Providence, any dollars expended on your behalf are due to be repaid to Providence within 30 days of the cancellation. Time Limit on Relocation Benefits Providence strongly urges you to relocate as soon as possible. If it is necessary to delay your move, the relocation benefits explained in this guide are available to you for up to 1 year after the start date of your new job. Why Providence Uses a Third Party Relocation Company There are significant savings for you and your family GMS leverages their volume to provide deep discounts and faster delivery dates with moving companies which will minimize travel/hotel expenses and maximize your relocation funds Your relocation coach acts on your behalf and counsels you on cost savings 3

5 Home Finding Trips Providence will pay or reimburse you and your spouse/significant other and up to 2 children living in the home of origin and who will relocate to the destination location for expenses incurred during a maximum of one (1) home finding trip, not to exceed 5 nights, to locate living accommodations at the new location. If you are traveling over 200 miles, Providence will arrange and pay for coach airfare, car rental, lodging and phone and meals. Airfare is also reimbursable if arranged within 14-day advance notice including a Saturday overnight stay. Reimbursable meal expenses will be limited up to $50 person/day. Child or elder care costs will be reimbursed up to a maximum of $35.00 per day for the duration of the househunting trip. Expense reports must be submitted within 15 days of incurring the expense. Home Finding Assistance (HFA) Providence provides community counseling and Home Finding Assistance at no cost to you through your Relocation coach. GMS specializes in helping transferring employees and their families locate the right home in the right neighborhood quickly and easily. Your coach is available to help you select a top notch agent, manage your timeline and act as your advocate. Please speak with your dedicated Relocation Coach prior to making any arrangements with a real estate agent in the new location. Your Relocation Coach will contact you and review the program. The program is available to you whether you presently own a home or rent. The service is designed to assist you in selecting the new community, neighborhood and home which best suits your particular requirements possible by providing information about the area through face to face counseling, assessing needs and arranging for a home search trip with a professional, knowledgeable, and experienced realtor. 4

6 If You Plan to Buy In the New Location If you were a renter in your old location and are going to buy a home in the new location rather than rent, your Relocation Coach will refer you to a real estate agent. Apartment Searching Your Relocation Coach can refer you to an apartment finding service. Some of these companies will not charge you a fee since they are paid a finder s fee by the apartment complex upon signing a lease. In addition, your Relocation Coach will send you a renter s packet with useful tips, tools and websites. Sale of Old Residence - Home Marketing Assistance (HMA) Providence provides Home Marketing Assistance at no cost to you through GMS to assist in finding a buyer for your residence. However, because of the variables associated with the sale of the old residence, it is strictly against Providence policy to offer a home buyout or home sale financial assistance. It is important to understand that all home sale costs will be the responsibility of the employee. Your Relocation coach will arrange for a representative from two qualified real estate firms to visit your home to establish a range of value and ninety-day sales strategy. Your Relocation Coach uses the data to complete a professional market analysis of the home and formulate a marketing strategy with you and the agent you select. Your Relocation Coach will stay involved to oversee and manage the agent to assure that the home is aggressively marketed. If you have a preferred Realtor, please inform your relocation coach so she can add this agent as one of your 2 options. Your coach is available to help you select a topnotch agent, manage your timeline and act as your advocate. Please speak with your dedicated Relocation Coach prior to making any arrangements to market and sell your home. 5

7 Guidelines for Success To accomplish the objectives of the Home Marketing Assistance program and to ensure the best interest of you and Providence are served, we recommend that the relocating employee: List the property within the selected Realtor s recommended list price range. Do not list the property any more than 105% of the upper end of the range. Follow the marketing plan as designed by your Relocation Coach to enhance the possibility of receiving an offer. Utilize the expertise of your Relocation Coach when an offer to purchase is received. Accept any fully negotiated offer that nets 97% or more of the previously determined market value. Your Relocation Coach is your advocate and will ensure all actions are directed at accomplishing a successful sale, since a timely home sale is critical to a successful relocation. Maintaining an open communication line with your Relocation Coach is in the best interest of your relocation process. Travel to the New Location / Final Move Trip You and your immediate family will be reimbursed for reasonable en route expenses. If driving, the trip to the new location must be made by the shortest direct route as determined by the AAA mileage chart. Vacation, extended trips, personal side trips or leisure travel are not covered. Reimbursable expenses include: Meals (up to $50.00 per day per person) Lodging (one night per 350 miles traveled not to exceed $200/ night). A larger budget may be approved upon request, due to family size. Transportation (coach or economy airfare or mileage reimbursement at the current IRS rate). Tolls, parking, ferry fees 6

8 Making Travel Plans You should already be in touch with Providence s contracted travel agent. If you have not spoken with this travel agent please let your Relocation Coach know immediately. Temporary Housing For those employees who have moved to the new location in advance of their family, for convenience of the Company, Providence will pay for the cost of lodging and a rental car, for up to thirty (30) days, at a pre-approved facility. Gas, tolls and meals are not reimbursable expenses. If the temporary facility does not provide a kitchenette, meals will be reimbursed. Your Relocation Coach will do research and assist you in finding a corporate housing apartment. Pets The relocation award may cover up to two household pets (such as a dog or cat) in the final family trip via airline transport or professional pet transport, if sufficient funds are available from the relocation allowance. Fish, rodents and farm animals are not considered household pets, and are not covered by the relocation allowance. Providence assumes no liability for the health and well being of pets while in transit or boarding facility. Moving Household Goods Providence utilizes the service of GMS to coordinate the transportation of your household goods. Two (2) bids must be secured through GMS. A third bid can be requested. The cost of moving household goods from your former residence to your new home will be paid directly by Providence. Any additional pick-ups and deliveries, or other special situations are at your expense. It is recommended that you try to coordinate your shipment directly from the origin to the destination to avoid excess handling of goods. Your Relocation coach will arrange for the two (2) required estimates/bids. You will be contacted directly by the moving company agent. The agent will make an appointment to survey your household goods, schedule packing and pick up dates, and provide and estimate delivery and unpacking date. All dates will be scheduled during the normal workweek. Any weekend dates require prior approval. 7

9 Covered expenses include: Removal, packing and debris pick-up Transportation and cartage by a qualified carrier In transit storage charges up to 30 days Transportation by qualified carrier of up to one personal vehicle for moves over 500 miles Appliance service at origin and destination up to a maximum of $250 Providence does not offer the shipment or services relative to certain items including, but not limited to the following: Boats, airplanes or other nautical or aeronautical devices Trailers, campers and recreational vehicles Livestock Antique, highly stylized, or show-ready vehicles Articles such as money, jewelry, securities, precious stones and/or metals and valuable papers Perishable or fragile items such as household plants, frozen foods, etc. Bulk items such as lumber, building materials, etc. Swing Sets Above Ground Swimming Pools including hot-tubs Installation or set up of pool tables Antiques Other items which require special handling A $75,000 valuation is provided to protect your household goods against damage or loss. Settlement of any claims for loss or damage is handled directly between you and the moving company. Your Relocation Coach will act as an advisor should it be required. 8

10 Rental Truck If you choose to rent a truck and move your household goods yourself, your Relocation Coach can refer you to a company that provides a discount. Tax Implications Per Federal and State taxation laws, certain relocation expenses paid to you, or to a third party on your behalf, are considered income and are therefore subject to payroll taxes. As required by law, Providence reports reimbursements and payments to vendors as income and these expense payments will be reflected on your Form W-2. Under current IRS guidelines and assuming you meet the IRS test for a Qualified Move, expenses related to the actual move from the former residence to the new residence are considered deductible/nontaxable. These expenses will be excluded from your income and include the expenses related to the movement of household goods and personal effects, the first 30 days of storage, and travel expenses relating to the one-way, final move trip to the destination location for you and your family members including lodging and transportation (according to a published IRS rate.) Because these expenses will not be reported as income, you cannot take a deduction for them. Qualified Move Requirements: 1. Distance Test: The distance between the employee s former residence and new place of work must be a minimum of 50 miles greater than the distance between the employee s former residence and former place of work. 2. Time Test: In the 12-month period following the move, you must be a full-time employee for at least 39 weeks. This test may be waived in the cases of disability or death, an involuntary separation from service (other than willful misconduct), or if you are transferred again for the benefit of your employer. This test does not need to be satisfied by the time you file your return as long as you expect to meet the test in the future. In addition, the 39 weeks does not need to be in a row or for the same employer. 3. Work Related Test: The move must be closely related in both time and place to the start of work at a new job location. 9

11 All nondeductible/taxable reimbursements and vendor payments will be included in your gross earnings on your Form W-2. You will be responsible for all applicable tax withholdings on these payments. If the payment is issued to you, Providence Payroll will withhold the applicable taxes at the time of payment. If the payment is made to a 3rd party on your behalf, the tax withholdings will be deducted from future paychecks issued by Providence. During the month of January, you will receive a year-end report (Relocation Tax Report) summarizing your reimbursed relocation activity and corresponding gross-up for the previous tax year. This document will provide the information necessary to complete IRS Form Our relocation provider, GMS, is also available to answer your questions regarding the reporting of relocation expenses. Taxes will be withheld from your pay in the pay period that taxable relocation expenses are processed. The tax rates are as follows: Federal Income Tax (FIT) = 25% Flat Rate Social Security Tax (SS) = 6.2 % Medicare Tax (Med) = 1.45% Example: Temporary Housing $1, Taxes withheld: FIT $ SS $ Med $ Total taxes withheld: $

12 Benefit Reported as Income Grossed-Up Home Finding Expenses Yes No Up to 30 days Temporary Living Expenses at final destination Yes No Lease Cancellation Yes No Final Move Lodging No No Final Move Transportation No No 1 Final Move Meals Yes No Move of Household Goods No No HHG Storage First 30 days No No Car Shipment No No Up to 30 days Car Rental at final move destination Yes No 1 If driving to the new location, a portion of the mileage reimbursement is excludable based on IRS guidelines. The balance of the reimbursed rate is considered taxable. 11

13 Expense Reimbursement Process Relocating employees are to submit ALL expenses directly to American Escrow (AECC). Relocation expenses are NOT to be submitted to Providence and Providence will not be responsible for submitting expenses on your behalf. You will receive a packet with instructions and options for reimbursement from AECC. Expenses will be reimbursed based upon current Corporate Policy. Such reimbursements may include, but are not limited to: Homefinding Trip Final move trip Costs will be verified for the following: Mathematical accuracy and attachment of proper receipts Compliance with Corporate Policy or Approval for exceptions Reimbursements do not exceed individual and aggregate dollar limits within Corporate Relocation Policy. In addition to tracking those costs submitted for reimbursement by the transferee, Providence will also track bills paid directly to suppliers by GMS or by Providence. These may include payments made to: Moving van lines Travel agencies Total expenses will be reported and tracked for the purpose of generating a relocation tax report (RTR) for the employee. This summarizes all cost data and identifies the deductible and non-deductible amounts according to IRS regulations. Other notations: Providence may establish separate employee relocation policies and/or benefit packages in the event of unusual or uncommon circumstances. Providence will have the final right of decision when interpreting the terms of the relocation benefits and programs described herein or in any communication with the employee. If you terminate employment prior to two years, you must repay prorated relocation expenses previously reimbursed or paid by Providence. (See attached insert name of Agreement) 12

14 Contact Information Global Mobility Solutions Contact: Your Relocation Coach Lori Herbert Phone Number: ext For Administration questions, comments or changes desired in the program and use of services regarding the overall program, contact your Providence recruiter at the toll free number listed below AK WA OR CA