Professional New Hire/Campus Recruit RELOCATION HANDBOOK Premier Service Premier Service

Transcription

1 RELOCATION HANDBOOK Premier Service Premier Service

2 TABLE OF CONTENTS INTRODUCTION 1 Eligibility for Relocation Assistance 1 Standards of Business Conduct/Conflict of Interest 1 Relocation Expense Repayment Provisions 2 The Role of the Relocation Company and Your Cartus Relocation Consultant 2 RELOCATION ALLOWANCE 2 Rental Assistance Destination Location 2 VARIABLE LUMP SUM AMOUNT 3 DEPENDENT CARE 3 SPOUSAL EMPLOYMENT RELOCATION ASSISTANCE 4 HOUSEHOLD GOODS SHIPMENT 5-6 Shipment Services Provided 5 Shipment Services Not Provided 5 Automobiles 6 Pets 6 Storage 6 Insurance 6 Damage Claims 6 TAX ASSISTANCE 7-8 Tax Assistance Calculations and Procedures 7 Final Tax Assistance Calculation 7 About Social Security Taxes 8 If You Earn The Social Security Salary Maximum Or More 8 If You Earn Less Than The Social Security Salary Maximum 8 Medicare 8 Year End Processing Information 8

3 INTRODUCTION CONGRATULATIONS ON YOUR NEW POSITION WITH EXXONMOBIL! YOUR UPCOMING RELOCATION WILL BE AN EXCITING AND CHALLENGING TIME FOR YOU AND YOUR FAMILY. AS YOU PREPARE FOR THE CHANGE, PLEASE TAKE THE TIME TO READ THIS HANDBOOK CAREFULLY. PLANNING YOUR MOVE WITH A CLEAR UNDERSTANDING OF THE RELOCATION POLICY WILL RESULT IN A SUCCESSFUL RELOCATION. Home Purchase Assistance is not provided to Professional Campus New Hires at the time of employment. If you are being employed in Fairfax, VA, Akron, OH or Edison, NJ effective June 1, 2013 or later and you chose to purchase a home without Company assistance after your employment date, the home will NOT be eligible for Home Sale Assistance at the time of the closure of those offices (scheduled early 2015). PLEASE contact your Cartus Consultant for details. INFORMATION IN THIS HANDBOOK IS SUBJECT TO CHANGE AND POLICY INFORMATION PROVIDED BY YOUR CARTUS RELOCATION CONSULTANT TAKES PRECEDENT. ELIGIBILITY To be eligible for relocation assistance, you are expected to obtain permanent residency in the new work location within 90 days of your start date. Relocation assistance is available when the distance between the old primary residence and the new work location is at least 50 miles greater than the distance between the old primary residence and the old work location. Relocation assistance is not available where the distance between the new work and new home is greater than the distance between the new work and old home; in other words, when the employee elects to move farther away from the new work location. If the employee does not relocate and does not meet the above requirements, no relocation benefits will be payable. PLEASE NOTE: If you and your spouse are both accepting an assignment with ExxonMobil, the provision of the Dual Career Relocation will apply. Each eligible new hire will be provided the Relocation Allowance. However, there will be only one Variable Lump Sum, one Shipment of Household Goods, and one Apartment Locator Assistance. STANDARDS OF BUSINESS CONDUCT Relocation is a business activity and as such is governed by all Company policies and guidelines. For example, the Standards of Business Conduct, Business Ethics, and accounting/controls policies all apply. CONFLICT OF INTEREST As outlined in the Conflict of Interest Policy, "Exxon Mobil Corporation's policy requires that directors, officers, and employees avoid any conflict between their own interests and the interests of the Corporation in dealing with suppliers, customers and other third parties, and in the conduct of their personal affairs"... 1 of 8

4 In addition, the Conflict of Interest Guidelines state that "it is considered to be a conflict with the Corporation's interest...for an employee to approve or administratively control contracts or other business arrangements between the Corporation and a member of their immediate family or with a company, firm, or individual employing a member of the employee's immediate family in activities under the employee's administrative control. Review, approval, or administrative control of such contracts and other business arrangements should be referred to senior management." This policy includes real estate transactions associated with company sponsored relocation benefits. RELOCATION EXPENSE REPAYMENT PROVISIONS If you either terminate your employment within twenty four (24) months of your transfer effective date, or you do not relocate, you may be required to repay the Company all or part of the relocation benefits paid to you or on your behalf. Any reimbursements made to you and not repaid will not receive tax assistance in the year paid. To be eligible for relocation assistance, you are expected to obtain permanent residency in the new work location within 90 days of your start date. THE ROLE OF THE RELOCATION COMPANY AND YOUR CARTUS RELOCATION CONSULTANT ExxonMobil has partnered with Cartus to implement the provisions of the Domestic Relocation policy. Upon receipt of the completed, approved Relocation Authorization form, your Cartus Relocation Consultant will contact you to begin the relocation process. Please make sure you are in contact with your Cartus Relocation Consultant PRIOR to starting any phase of the relocation process and incurring any expenses. Failure to do so will result in decreased benefits. Your Cartus Relocation Consultant will guide you through every step of the process, answer questions, outline the information needed to expedite the relocation, and will coordinate a team of people to assist you during the move. We encourage you to become fully involved in your move and work closely with the professionals who have been made available to you. Planning your move with a full understanding of the policy will also help to avoid any unpleasant surprises. The more actively you participate and provide necessary information, the more effectively the Relocation Consultant can serve you. The ExxonMobil Global Mobility Office is staffed by Company employees and provides guidance to the Relocation Company on policy interpretation and administration. RELOCATION ALLOWANCE You will be eligible for a relocation allowance equal to 0.5 of your monthly base pay to help cover miscellaneous incidental expenses. No verification of expenditures is required. This payment is taxable and is tax assisted by the Company. The relocation allowance will be paid to you after your effective date of employment. Please contact your Cartus Relocation Consultant to initiate this payment. RENTAL ASSISTANCE DESTINATION LOCATION Your Cartus Relocation Consultant will provide you with the services of a relocation apartment locator in the new area, including an accompanied Half-Day Tour (In the Greater Houston Area, you are entitled to a Full Day Rental Tour for Apartments and a Two-Day Rental Tour for Single Family Homes). If required, a documented Finders Fee expense may be reimbursed. This expense requires approval by your Cartus Relocation Consultant and should be no more than what is considered normal and customary for the destination area. In addition, you will be reimbursed for the cost of one (1) credit check required to secure a rental in the new area and application fee. 2 of 8

5 NOTE: A transfer clause should be inserted in your new lease contract enabling you to break the lease in the event of a future transfer. An example of such a clause would be: It is hereby mutually agreed that if the tenant is transferred out of the area by his/her employer, with proper verification, this lease will be terminated upon receipt by the Landlord/Agent of days' written notice. This notice period runs from the first day of the first full month following the notice. This benefit is considered taxable income and will be tax assisted. VARIABLE LUMP SUM AMOUNT To cover expenses for home finding, interim living and final move, you will be eligible for a variable lump sum with a minimum payment of a $3,000. This payment is intended to cover basic expenses you would incur (transportation, lodging, meals, and incidentals) to locate and move into your new residence. This payment is taxable and is tax assisted by the Company. Payment amount may increase to reflect anticipated higher expenses associated with specific origin and destination locations, marital status and number of dependents 1. The exact amount of your variable lump sum amount can be provided by your Cartus Relocation Consultant. REIMBURSEMENT FOR HOME SELECTION/DEPENDENT CARE (CHILDREN OR ELDERLY) While you are on your home selection trip, you will be reimbursed for actual documented dependent care expenses per one of the following scenarios: Dependents accompany you on the home selection trip. Airfare and meal expenses will be covered. Transportation (airfare or mileage) of one relative to stay with your dependent(s) at your home location (must be within the US)* Transportation (airfare or mileage) of your dependents to stay with a relative at their home (must be within the US)* Local prevailing rates for care service provider either at home location. *Lodging, meals and other incidental expenses for caretaker/relative will be your expense. 1 Dependents for Relocation purposes are dependents recognized under the ExxonMobil Medical Plan and will be permanently residing with the employee at the new work location. 3 of 8

6 SPOUSAL EMPLOYMENT ASSISTANCE If your spouse is presently employed and will be seeking employment in the new location, the Company offers the following assistance: Reimbursement of up to $ 2,500 of expenses associated with the employment search of a relocating employee s working spouse. While you are free to choose any service provider you wish, some familiar with the ExxonMobil policy are: Name Lee Hecht Harrison Sally White Phone Numbers (800) (214) Keep in mind that these are not employment agencies. The Company will reimburse expenses up to the above-referenced limit for the following types of activities related to the relocating employee's working spouse: Special visa/work permit applications Counseling services provided by above-mentioned employment assistance firms, such as: - Career mobility counseling - Resume development - Area business and employment information - Job leads and networking assistance Fees charged by employment agencies for referrals Interview travel or job search (e.g. transportation, mileage/tolls, lodging, meals, parking) Expenses associated with re-establishing a business for the self-employed spouse (e.g. business cards, business letterhead). Please note that expenses associated with purchasing assets for a business (e.g. computers, telephone equipment, etc.) are not reimbursable. Certification fees (e.g. nursing, teaching). Expenses associated with required maintenance of professional license or certifications (e.g. examination costs/re-certification fees) Reimbursement will not be made for personal items such as clothing or business assets/services, e.g. personal computer, cell phone, Internet services, etc. Payment for these services is made by the employee and reimbursable with documented receipts. This benefit is considered taxable income and will be tax assisted. 4 of 8

7 HOUSEHOLD GOODS/VEHICLE(S) SHIPMENT ExxonMobil has contracted with Allied Van Lines to provide you with this service. A representative of Allied will contact you to arrange for a pre-move survey. This representative will work with you in all subsequent scheduling of packing, moving and delivery. Be sure to let your Allied representative know if you have any antiques or other furniture of high value when you call to initiate services. It is recommended that a written appraisal of such items be obtained prior to shipment. The expense for an appraisal is covered under your Relocation Allownance. SHIPMENT SERVICES PROVIDED: One household move from your departing home to your destination work location Packing, shipping and unpacking of ordinary household goods Disconnect and reconnect of usual household appliances Single recreational vehicle less than 14 feet SHIPMENT SERVICES NOT PROVIDED: Additional pick-ups and drop-offs which incur additional expense Shipment of goods to a location other than new work location city Storage of automobiles Shipment of non-working automobiles or antique cars Shipment of hazardous materials such as explosives, chemicals, flammable materials, ammunition, garden chemicals Shipment of firewood, lumber or other building materials Shipment of livestock Shipment of valuables such as jewelry, currency, dissertations or publishable papers, and other collectibles or items of extraordinary value Shipment of plants, food, wine collections or other perishables Removal, disassembly or installation of carpeting, drapery rods, storage sheds or other permanent fixtures Shipment of snowmobile, boat or other recreational vehicle over fourteen (14) feet, multiple recreational vehicles Shipment of unusually heavy or cumbersome hobby materials Shipping, disassembling, re-assembling of large satellite dishes Disassembly of storage sheds, decks, pools and spas Maid service This list is not all-inclusive. You should discuss any questions with your Allied representative. 5 of 8

8 AUTOMOBILES Vehicles in running condition used by family members for transport purposes can be either shipped or driven to the new location. If you choose to drive the vehicles to your new location, mileage is included in your lump sum amount; therefore is not reimbursed. If you choose to ship vehicles and you and your family fly to the new location, all shipping expenses will be covered. All vehicles that are shipped are covered by the Company s insurance as an item of household goods at current NADA (bluebook) value. PETS ExxonMobil will reimburse you for reasonable and actual costs of shipping household pets to the new location by the least expensive method available. The maximum amount of reimbursement for this benefit is actual reimbursement up to $500, with documented receipts. This includes the cost of crates. Other pet shipment related costs such as shots, quarantine, health certificates and boarding are covered by the Relocation Allowance. STORAGE If your new home is not available for delivery of your household goods, Company-provided storage will be covered for up to thirty (30) days. Storage costs exceeding the thirty (30) day limit will be at your expense. Also included is a one-time delivery of your household goods from Company-provided storage. INSURANCE Full replacement value insurance is provided for your personal property while in transit, authorized storage, or the custody of third parties. The maximum liability provided is $500,000. Items that have not been prepared or packed by Allied are excluded from this coverage. Additional insurance is available at your expense. Consult your personal insurance policy representative for an explanation of coverage for items in transit, as well as coverage for vacant property at the former and/or new locations, if applicable. DAMAGE CLAIMS In the event of loss or damage discovered while unpacking your household goods, please notify your Allied representative at once and note the damaged items on the mover s inventory list. Claims of damage to household goods and shipped vehicles, must be filed within a specific period of time. Contact your Allied Van Line Representative to determine the timeframe for filing a claim. Damage to either your old or new home must be reported within 24 hours. Keep all evidence of damage for the carrier s inspector. Allied will arrange for an inspection and appraisal of the damage, authorize repairs and settle all claims with you. If an item is damaged beyond repair, Allied will make the appropriate payment and retain the item. If you have questions about any aspect of your household goods shipment, please contact your Allied Van Line Representative. THE SHIPMENT OF HOUSEHOLD GOODS BENEFIT WILL NOT BE INCLUDED AS INCOME PER IRS GUIDELINES, EXCEPT FOR STORAGE OVER 30 DAYS AND MILEAGE OVER $.12/MILE 6 of 8

9 TAX ASSISTANCE All taxable moving expense reimbursements/payments are considered income to you and are subject to federal, state, Social Security and Medicare taxes. The IRS considers all relocation expenses paid to you (or on your behalf) as compensation, except those expenses associated with: The household goods shipment Storage of household goods for 30 days ExxonMobil will provide assistance toward the additional tax liability, which you incur on moving expense reimbursements/payments. The amount of tax assistance will be determined in accordance with parameters established by ExxonMobil (outlined later in this section). It should be noted that, due to possible variations in your personal situation, the tax assistance provided by ExxonMobil might not cover your actual tax liability resulting from your relocation. Your Relocation Allowance is intended to help offset any additional tax liability not covered by the tax assistance. It is important that you understand how the tax assistance works and how it will be calculated and reported, so that you are not surprised at tax time. All transit cost (transportation of household goods and automobiles) are considered excludable from income and non-taxable. Final move costs will appear in Box 12b on your W-2 (a reporting requirement of the IRS); they are not included in your income in Box 1 and have no effect on your tax liability. Household goods shipment costs do not appear in Box 1 or Box 12 on your W-2.. TAX ASSISTANCE CALCULATIONS AND PROCEDURES Throughout the course of your relocation, you will be receiving moving expense payments (e.g., lump sums for House Selection Trip and Interim Living as well as your Relocation Allowance). At the time these payments are processed, federal tax assistance (at the IRS supplemental rate of 25%); state tax assistance (based on state tax tables) for the state to which you are moving; Medicare tax assistance and Social Security tax assistance on earnings up to Social Security salary maximum will be provided by ExxonMobil. These amounts will be added to the year-to-date earnings and withholding on your next payroll statement. At the end of the year, a final tax assistance calculation will be done using the parameters listed below. If any additional tax assistance is due you, it will be added to your earnings/withholding at year-end and paid to the appropriate taxing authorities on your behalf. If you have been given too much tax assistance, an adjustment will be made to your earnings/withholding at year-end. FINAL TAX ASSISTANCE CALCULATION The following factors are used in determining the final tax assistance due you: 1. Your ExxonMobil source income which includes: Your base salary plus incentives, fringe benefits, etc. but excluding any 401k or before tax deductions, and Relocation payments made during the calendar tax year; 2. Current federal, state, local, Medicare, and Social Security tax rates for computing taxes due; 3. Actual personal exemptions you will claim on the Form 1040 (for you, your spouse and all eligible dependents); 4. A standard deduction to be applied against base salary. This deduction is included to reflect the deduction you may typically take on your federal and state tax returns. The amount of the standard deductions used will be reviewed periodically by ExxonMobil and revised as appropriate. NOTE: ExxonMobil bases the tax assistance on ExxonMobil source income only. Other income (e.g., spouse s, rental or investment income), when added to your ExxonMobil income, may put you in a higher tax bracket. This is NOT considered in the 7 of 8

10 tax assistance calculation. Your Relocation Allowance is intended to be used to offset the additional tax liability. ABOUT SOCIAL SECURITY TAXES You are responsible for the Social Security taxes on your annual compensation (without relocation expenses). Each pay period, Social Security is deducted from your paycheck and added to your withholding. Once you reach the Social Security salary maximum, this deduction ceases. IF YOU EARN THE SOCIAL SECURITY SALARY MAXIMUM OR MORE If your compensation (without relocation) would normally meet or exceed the Social Security salary maximum, your relocation would not result in any additional Social Security tax liability and no tax assistance would be due you for Social Security. However, if, at the time of payment, you have not yet earned the salary maximum, your relocation expenses are subject to Social Security withholding, and ExxonMobil will advance the Social Security tax on your behalf and add the amount to your withholding. The payment (plus the tax assistance) is added to your Social Security earnings. You will meet the Social Security salary maximum earlier in the year than you would have without relocation, because your relocation expenses are being added to your Social Security earnings along with your regular compensation. Your net pay will increase and the Social Security deduction will stop once the Social Security salary maximum is met. IF YOU EARN LESS THAN THE SOCIAL SECURITY SALARY MAXIMUM ExxonMobil will provide tax assistance for the additional Social Security tax liability incurred as a result of your relocation. MEDICARE You are responsible for the Medicare taxes on your annual compensation (without relocation expenses). Each pay period, Medicare is deducted from your paycheck and added to your withholding. Medicare taxes are also to be paid on your relocation income and ExxonMobil will advance this tax on your behalf and add the amount to your withholding. YEAR END PROCESSING INFORMATION The Relocation Company will send you a Relocation Summary Package at year end, which will detail all moving expense payments and will indicate the amount of final tax assistance calculated for your move. The information will be included in your Wage and Earnings Statement (Form W-2) for the year. Note: It is imperative that you keep records and receipts of all your expenses to manage your tax return filing process at year-end. You are strongly encouraged to consult a professional tax advisor for details on the tax implications of your relocation. Along with seeking the assistance of a professional tax advisor, consider reading the following IRS information guides: Publication Moving Expenses Publication Tax Information on Selling Your Home. To order these guides or necessary tax forms call TAX-FORM. The Website address is to view or copy the tax forms. 8 of 8