RELOCATION HANDBOOK Premier Service
TABLE OF CONTENTS INTRODUCTION 1 Eligibility for Relocation Assistance 1 Important Benefits/ Payroll Information 1 Paid Time Off for Relocation 2 Getting Started 2 Standards of Business Conduct/Conflict of Interest 3 Relocation Expense Repayment Provisions 3 The Role of the Relocation Company and Your Cartus Relocation Consultant 3 NON-SPECIFIC EXPENSE ALLOWANCE (NEA) 4 HOME SALE ASSISTANCE / HOME PURCHASE ASSISTANCE 5 Home Sale Assistance for Non-US locations 5 Purchasing A New Home / Eligibility 6 Mortgage Programs 6 Home Purchase Closing Costs - Reimbursement / Direct billing 7-8 MEET AND GREET SERVICES 8 HOME SELECTION TRIP / INTERIM LIVING / EN ROUTE REIMBURSEMENTS 9 Incidentals Lump Sum (Meals & Incidentals) 9 Home Finding Trip 9 Interim Living (Lodging / Rental Car) 9 En Route Travel 9 VISA EXPENSE REIMBURSEMENT 9 AUTO DISPOSITION ALLOWANCE 9 APPLIANCE DISPOSITION ALLOWANCE 9 AUTO SOURCE REFERRAL OPTION 10
COST OF LIVING ALLOWANCE (COLA) 10 HOUSEHOLD GOODS SHIPMENT 10 Shipment Services Provided 10 Shipment Services Not Provided 10 Pets 11 Storage 11 Insurance 11 Damage Claims 11 SPOUSAL EMPLOYMENT RELOCATION ASSISTANCE 12 REIMBURSABLE EXPENSES 13 TAX ASSISTANCE 14 Tax Assistance Calculations and Procedures 14 Final Tax Assistance Calculation 15 About Social Security Taxes 15 If You Earn The Social Security Salary Maximum Or More 15 If You Earn Less Than The Social Security Salary Maximum 15 Medicare 16 Year End Processing Information 16 COMPANY TAX ASSISTANCE ON RELOCATION EXPENSES 17
INTRODUCTION Congratulations on your new assignment! Your upcoming relocation with ExxonMobil will be an exciting, challenging time for you and your family as you prepare for the change. Planning your move with a clear understanding of the relocation policy will result in a successful relocation. Please take the time to read this Handbook carefully. Information in this Handbook is subject to change and policy information provided by your Cartus Relocation Consultant takes precedent. You must contact your Cartus Relocation Consultant prior to starting any part of the relocation process, including the discussion of home sale or purchase activities with a real estate agent/broker and the agent must agree to pay applicable referral fees. Failure to do so will result in decreased benefits. NOTE: For those with employment or transfer dates of June 1, 2013 or later, being assigned to Fairfax, VA, Akron, OH, or Edison, NJ, the Home Purchase Assistance detailed on page 6 does not apply (regardless of departure location) PLEASE contact your Cartus Consultant for details. 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 original primary residence and the original work location. Relocation assistance is not available where the distance between the new work and new primary residence is greater than the distance between the new work location and original primary residence; in other words, when you elect to move farther away from the new work location. If you do not relocate and therefore do 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 Non-Specific Expense Allowance (NEA), Final Trip Travel to destination and Incidental Lump Sum. IMPORTANT BENEFITS/ PAYROLL INFORMATION Your relocation may have a significant impact on your health benefits, taxes, and payroll. Some changes to your benefits may require completion of appropriate forms within 31 days of your transfer or residence address change. State payroll tax withholding (if applicable) is based on the home address you provide to ExxonMobil. Once you move (including temporary or interim accommodations) to your new work location, it is imperative that you change your address to the corresponding location to assure proper and accurate state/local payroll tax applications. If your residence address is not changed on a timely basis, negative tax consequences could result. The following addresses these ExxonMobil benefits and payroll impacts. Contact Benefits Administration at 800-262-2363 or 713-680-5858 if you have questions about benefit or address changes. Benefits/Payroll Information For Relocating Employees Employee Direct Access (EDA) provides you the opportunity to view and change your benefits, personal data, and pay related information via the Intranet. For a quicker response time, EDA allows an employee at any time to electronically submit a request for employment/ salary Page 1 of 17
verification to mortgage or rental companies. This option is listed under My Pay Information on the Launch Pad to the left of the screen of ExxonMobil's intranet page. You will be able to perform the necessary changes coincident with your relocation by following these simple steps: Logon to EDA Access Life and Work Events on the Launch Pad to the left. Select Job Transfer Requiring Company Authorized Relocation as your event and click Continue Enter the latter of your relocation date or residence address change date in the date field and click Continue A menu of options will appear specific to this event on the left of the screen, which includes payroll-related changes, personal data changes, and benefit changes EDA will prompt you to first complete your address change. Address changes cannot be made on a retroactive basis. This address will determine what medical plan options will be available to you (and your family), your state of residence (for tax purposes) and new mailing address. Note: Change of address: 1) for the ExxonMobil Credit Card can be completed via phone at 1-800-344-4355 or via the Employee Credit Card Change of Address Form (found in the Forms Section of the ExxonMobilMe/Relocation Intranet site); 2) for stock through the Shareholder Investment Program/Bank of Boston -- call 800-252-1800 or 781-575-2058; or 3) for Savings Bonds through National Bond and Trust -- call 800-426-9314. BENEFIT CHANGES Click on Benefits Change and you will be able to change medical plans if necessary, confirm current dependent coverage for both medical and dental plans, and change Pre-Tax Health and Dependent Care Account contributions, as necessary. These changes must be made within thirtyone (31) days of either your transfer effective date or physical relocation. When you have completed these 3 US Domestic Transfers changes, please print a confirmation statement for your records, as these forms will no longer be mailed to you. PAY INFORMATION CHANGES Click on My Pay Information and you will be able to complete the following: View your pay statements Update banking information for Electronic Funds Transfers, Update tax information for Federal/State Withholdings Please note that the state on your address (whether you are submitting an address change or not) will be used as your state of residence for tax reporting purposes. If this is not your intention, please specify your state of residence for tax reporting purposes in writing. Please be aware that certain resident states and work states have state reciprocal agreements, and in order to be taxed in the correct state, you may need to submit a Certificate of Non-residence for your work state. Also, resident and work state taxes will be withheld using the default Marital Status and Allowances for those states. Employees may adjust state withholding by changing their state W-4 election through Employee Direct Access. If you need further assistance, please contact the Benefits Administration Office at (713) 680-5858 or 1-800- 262-2363 and select the appropriate option. PAID TIME OFF FOR RELOCATION An employee is granted reasonable time off with pay to handle personal activities associated with their Company-initiated relocation. Such activities include supervising the household goods shipment (packing at the old location and the unloading at the new location), traveling to the new destination, and making other move-related family and/or household arrangements. In determining how much time off is needed, the supervisor should take into account the Page 2 of 17
employee's personal circumstances, which will vary depending on renter/homeowner, schooling/childcare issues, etc. Paid time off for Company-initiated relocation is not counted toward the 40-hour annual maximum for Personal Time with pay. GETTING STARTED Once you have accepted a position requiring a domestic relocation, you will need to complete Part 1 of the ExxonMobil Domestic Relocation Authorization form, which can be found on the ExxonMobilMe/Relocation Intranet site. Once you have completed this section, please forward the form to your HR Contact at your new location, who will complete the authorization process. The authorization process typically takes 2-3 business days before your Cartus Relocation Consultant contacts you. PURPOSE OF HANDBOOK ExxonMobil wants your relocation to be as smooth as possible. This handbook is designed to help you understand the provisions of the relocation policy and to serve as a reference guide throughout your relocation. The goal of this policy is to facilitate your move to the new location and allow you to be fully productive at the new work location as quickly as possible. 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"... 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 voluntarily terminate your employment within twenty-four (24) months of your transfer effective date, or you do not relocate, you will be required to repay the Company all of the relocation benefits paid either 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. Page 3 of 17
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 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 Cartus Relocation Consultant can serve you. The ExxonMobil Global Mobility Office is staffed by Company employees and provides guidance to the Relocation Company, Cartus, on policy interpretation and administration. NON-SPECIFIC EXPENSE ALLOWANCE (NEA) Upon receipt of your Relocation Authorization Form by Cartus, a Non-Specific Expense Allowance (NEA) is provided. This payment is not intended as additional compensation. Management s intent in making this payment is to assist with all expenses associated with your relocation not specifically covered by the relocation policy or that exceed the reimbursement provided by the policy. This payment is a one-time payment equal to 1.25 of one month s salary. This payment will be processed upon written request from you (via a Cartus Relocation Expense Report), but not before your effective date of employment. Keep in mind that if you do not complete your relocation, you may be required to repay the NEA. Examples of some items this allowance covers: Additional income tax liability Dependent care other than during home selection trip Non-refundable deposits, membership dues, season tickets, etc School fees such as forfeited tuition, testing fees, transcript fees, non-district fees during interim living, etc Service cancellation charges, e.g. cell phones, security systems, pagers, internet service, etc.. Carpet and drapery purchase/installation/cleaning Pet shipment (other than basic coverage), shots, quarantine and boarding Utility hook-up or service / installation / deposits; e.g. cable, internet, phone, gas, electricity Cleaning of former or new residence, including trash removal Non-reimbursable home sale and/or home purchase expenses Shipment of items not covered under the household goods program Additional household goods insurance during shipment Mileage, tolls during interim living Driver s license/automobile registration Page 4 of 17
Gratuities to household goods packing and shipping personnel Preparation of former residence for sale Vacant dwelling insurance Appraisal fees for household goods Mortgage Brokerage Fees Private Mortgage Insurance Realtor transaction fees other than reasonable & customary commission fee Reviewed September 2014 This list is not meant to be all-inclusive but lists common expenses incurred during relocation. You may have other expense items unique to your relocation not specified here nor specifically covered elsewhere in the policy. Such items are to be covered by this benefit. THIS BENEFIT IS CONSIDERED TAXABLE INCOME AND WILL BE TAX ASSISTED. HOME SALE ASSISTANCE AND HOME PURCHASE ASSISTANCE ADMINISTRATION Please be advised that you must contact your Cartus Relocation Consultant prior to starting any part of the home purchase process. Whether you plan on purchasing an existing home or new construction, you must register an agent with Cartus to be eligible for the 1% loan origination fee reimbursement. If you own a home in the new U.S. work location, you would not be eligible for Home Sale Assistance or Home Purchase Assistance. HOME SALE ASSISTANCE FOR NON-US LOCATIONS DIRECT SALE If you are a homeowner in the non-us location and sell your residence, you are eligible to receive direct reimbursement. You must submit for reimbursement within 12 months of your effective date of transfer. Cartus, upon receipt of documented home sale expenses (HUD statement), will coordinate reimbursement. This information must be reflected in or translated into English and U.S. dollars. Examples of reimbursable costs: Real Estate Commission up to a maximum of 6% Abstract of Title/Title Insurance (per local custom) Documentary tax / excise stamps, tax certificates Inspection fees as required by lender (radon, etc.) Local statutory costs Mortgage recording or discharge fees Transfer taxes Attorney fees Survey expense Escrow / Conveyance fee Notary fees This list is not all-inclusive. Questionable items should be addressed with your Cartus Relocation Consultant. Page 5 of 17
PURCHASING A NEW HOME Please be advised that you must contact your Cartus Relocation Consultant before you discuss home purchase with a Cartus network real estate agent/broker, and the agent must agree to pay applicable referral fees. Failure to do so will result in decreased benefits. NOTE: For those with employment or transfer dates of June 1, 2013 or later, being assigned to Fairfax, VA, Akron, OH, or Edison, NJ, the Home Purchase Assistance detailed below does not apply (regardless of departure location) PLEASE contact your Cartus Consultant for details. HOME PURCHASE ASSISTANCE ELIGIBILITY Employee was/is a homeowner in the non-us location and can provide documentation to confirm ownership Home purchase is expected to be completed within 12 months of the start of the assignment Purchase must be your primary residence, located in the new U.S. work location Employee must use an assigned Cartus network broker to coordinate the purchase, ExxonMobil preferred national lender to provide the home mortgage (loan), and a Cartus home inspection firm to evaluate the condition of the home prior to purchase Home purchase in the U.S. requires an initial cash down payment of 10 to 20 percent of the home's total value; the expatriate is responsible for paying the down payment. Expatriate reimbursed for customary and reasonable purchase fees and charges (e.g., appraisal, credit report, lender's title insurance, escrow fees, attorney's fees, notary fees, home inspections and loan origination fee not to exceed 1% of the mortgage amount) MORTGAGE PROGRAMS Once you have found a home you intend to purchase, you will probably need a mortgage to complete the transaction. ExxonMobil has established a relationship with Chase, Citi Mortgage and Wells Fargo Home Mortgage. Following are benefits to utilizing one of the preferred lenders: Direct billing of closing costs--you don't have to arrange payment Preferred rates for transferring employees Pre-approval prior to your house hunting trip Prompt mortgage approval and processing turn-around times Credit for working spouse income (only if spouse is working at the new location) In addition to these benefits, the preferred lenders are familiar with the levels of reimbursements and benefits you are entitled to receive under the home purchase policy. The Mortgage Consultant will help you analyze all aspects of your new mortgage. Citi Mortgage www.citimortgage.com Chase WWW.CHASE.COM/EXXONMOBILRELO 1-800-925-5319 1-636-256-5000 1-866-289-7351 Wells Fargo Home Mortgage 1-800-457-4663 https://www.wellsfargorelo.com/relo/home.wfm 1-612-341-1400 When contacting the above preferred lenders please identify yourself as an international expatriate of ExxonMobil on U.S. assignment. Page 6 of 17
HOME PURCHASE ASSISTANCE HOME PURCHASE CLOSING COSTS There are numerous expenses associated with the purchase of your new home that vary by state and local custom. You will be reimbursed for buyer s expenses customary in the new location; which should be discussed with your Cartus Relocation Consultant. Fees and charges most commonly recognized for reimbursement are: Abstract or title search Amortization fee Application fee Appraisal fee (1) Attorney fees (where required by state law) Certified copies Credit report (1) Document preparation fee Escrow fee Guarantee fee Inspections that are normal and customary (termite, well/septic) Loan origination fee not to exceed 1% of the mortgage amount. (If you do not have a purchase agent registered with Cartus you will not be reimbursed any portion of the 1% loan origination fee.) Homeowners title policy for new construction only. Lender's Title Policy Messenger service fees/express shipment fees Notary fees Recording fees Settlement or closing fee Survey Tax service fee Title examination Underwriting fee Costs associated with loans obtained through private or family sources to the extent that those costs are customary and usual for the area. In this case, no points will be reimbursed. Any cost associated with the purchase of your new home which is not normally paid by the buyer, but which you agree to pay for any reason, will not be reimbursed. Mortgage Broker fees and/or Builders concessions paid on your behalf are not reimbursable. This is an item assisted by the Non-Specific Expense Allowance (NEA) detailed on Page 3 of this Handbook. IMPORTANT: It is extremely important that you review all closing costs with your Cartus Relocation Consultant before you enter into any contract. Failure to do so may result in your being responsible for some costs not eligible for reimbursement. You may find it helpful to Page 7 of 17
provide your Cartus Relocation Consultant with a copy of your Good Faith Estimate or contract for new home construction. Refer to the Standards of Business Conduct and Conflict of Interest information on Page 1 of this Handbook. Company standards address the selection of a real estate agent and all transactions associated with your relocation DIRECT BILLING FOR CLOSING COSTS When you finance your new home through one of the preferred lenders (Bank of America, CitiMortgage, Wachovia, and Wells Fargo Mortgage) your reimbursable closing costs will be direct billed to the company and paid on your behalf. This payment is taxable. Tax assistance will be provided except for those items that are tax deductible (e.g., loan origination fee). MEET AND GREET SERVICES You will be provided with a Destination Service Consultant (DSC) to assist with area orientation, home finding and settling-in services such as obtaining a driver s license in the new location, opening a U.S. bank account, and obtaining a Social Security number. The DSC will also arrange transportation from the airport to the temporary accommodations upon arrival. Page 8 of 17
HOME SELECTION TRIP/INTERIM LIVING/ INCIDENTALS LUMP SUM / ENROUTE TRAVEL REIMBURSEMENTS INCIDENTALS LUMP SUM (MEALS & INCIDENTALS, I.E. PARKING, LAUNDRY) You and your accompanying eligible dependents will receive $50.00 per person per day for meals and incidentals for up to a maximum of 42 days. Upon arrival, you will receive an initial payment for 14 days via a Relocation Expense Form submitted to Cartus by you. You will receive the balance, up to 42 days, in 14 day increments via a requested expense statement submitted to Cartus. The lump sum will be disbursed to you either until you move into permanent housing, or 42 days have been exhausted. HOME FINDING TRIP A home finding trip is not eligible for reimbursement under the U.D. Domestic Relocation guidelines. INTERIM LIVING (LODGING / RENTAL CAR) You and your accompanying eligible dependents will be assisted by the Cartus Relocation Consultant in arranging both the lodging accommodations and the rental car needed upon arrival. Cartus will direct bill the room, tax and parking (if required) for up to a maximum of 42 days. Cartus will also direct bill one rental car for up to a maximum of 42 days. ENROUTE TRAVEL You and your accompanying eligible dependents will receive either reimbursement for, or can direct bill via ExxonMobil Travel Service, airfare from the authorized Non-U.S. departure location to the new U.S. work location. VISA EXPENSE REIMBURSEMENTS You will receive reimbursement for the costs associated with obtaining the work Visa, such as cost of required photographs, passports, required Visas and work permits. Incidental costs such as tolls, parking, mileage, etc. will also be reimbursed if related to obtaining the Visa. AUTO DISPOSITION ALLOWANCE The Company may provide automobile assistance for the disposition of a personally owned/leased automobile at the departure location. The amount, if applicable, will be determined by ExxonMobil. APPLIANCE DISPOSITION ALLOWANCE The Company may provide appliance assistance for the disposition of personally owned appliances. The amount, if applicable, will be determined by ExxonMobil. Page 9 of 17
AUTO SOURCE REFERRAL OPTION The Company will provide a referral to Auto Source International which assists Non-U.S. citizens in purchasing or leasing a vehicle prior to arriving in the US. COST OF LIVING ALLOWANCE (COLA) A Cost of Living Allowance is not eligible for reimbursement under the U.S. Domestic Relocation guidelines. 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 are contacted to initiate services. It is recommended that written appraisal of such items be obtained prior to shipment. The expenses for appraisals are examples of items assisted by the Non-Specific Expense Allowance (NEA) referenced on Page 7 of this Handbook. SHIPMENT SERVICES PROVIDED: One household move from your original primary residence to your new 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 Page 10 of 17
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. PETS ExxonMobil will reimburse you for reasonable and actual costs of shipping up to three (3) household pets to the new location by the least expensive method available. The amount of reimbursement for this benefit is $500 per pet, maximum reimbursement $1500, with documented receipts, which includes the cost of crates. Other pet shipment related costs such as shots, quarantine, health certificates and boarding are covered by the Relocation Allowance (RA) referenced on Page 2 of this Handbook. STORAGE If your new primary residence is not available for delivery of your household goods, Companyprovided 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 to your new primary residence. 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 specific period of time. Contact your Allied Van Line Representative to determine the timeframe for filing a claim. Damage to either your original or new primary residence 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. Except for storage over thirty (30) days and mileage over $.12/mile, the shipment of household goods benefit will not be included as income, per IRS guidelines. Page 11 of 17
SPOUSAL EMPLOYMENT ASSISTANCE Reviewed September 2014 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. The Company will reimburse expenses up to the above-referenced limit for the following types of activities related to your working spouse: Special visa/work permit applications Counseling services provided by employment assistance firms, such as: Career mobility counseling Resume development Area business and employment information Job leads and networking assistance Referral fees charged by employment assistance firms 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 you and reimbursable with documented receipts. While you are free to choose any service provider you wish, some familiar with the ExxonMobil policy are: Name DBM www.dbm.com Sally White www.sallywhite.com Phone Numbers 1-800-245-0891 1-800-224-7115 1-214-219-7115 Keep in mind that these are not employment agencies and therefore are not able to assist with placement opportunities. This benefit is considered taxable income and will be tax assisted. Page 12 of 17
REIMBURSABLE EXPENSES Both Departure home sale and Destination home purchase must be completed within twelve (12) months of the effective date of transfer. All other reimbursement requests must be submitted to the Relocation Company, Cartus, as soon as possible during the course of the relocation and in no event later than twelve (12) months from the effective date of transfer. Most reasonable and necessary expenses, which are not included in the Lump Sum, qualify for reimbursement. However, full reimbursement for each relocation expense is not always intended. Only items specifically outlined in the policy are reimbursable. Substitution of expenses or provisions is not permitted. The Non-Specific Expense Allowance (NEA) is meant to cover all items not specifically itemized in the policy. Reimbursement will not be made for services performed by you or members of your family. NO reimbursement will be made for the use of airline miles, points, or gift cards. These charges should be placed on a personal credit card and submitted to Cartus for reimbursement (using Corporate AmEx should be avoided when possible). If charging to a Corporate American Express, please see section below for instructions to clear. Expenses should be submitted either to Cartus, for reimbursement, or to the Company. Any expenses submitted to both will be considered an irregularity which will lead to disciplinary action up to and including termination of employment. Payments made to you in connection with your relocation are not components of your base salary. These payments have no affect on your status under any benefit plan of the Company. You must account for your expenses on a Relocation Expense Form. Expenses must have been incurred prior to submitting for reimbursement. A copy of this form may be found on the ExxonMobilMe/Relocation Intranet site. In cases where relocation expenses appear to be excessive, the Relocation Office may contact your immediate supervisor. Do not combine relocation and business expenses on any expense report. Each relocation event must be reported on a separate expense report. Home Selection Trip (actual), Interim Living (actual), Relocation Allowance (RA), Home Selection Trip/Interim Living Lump Sumand Final Move are separate events requiring separate Relocation Expense Forms. Any expense requiring a receipt must be submitted with receipts and Relocation Expense Form. Should your transfer not be completed for any reason, you are eligible to receive only your documented, actual expenses. Please also see Relocation Expense Repayment Provisions on Page 2 of this Handbook. If you have any questions regarding this policy, please contact your Cartus Relocation Consultant. Should you terminate your employment from the Company within twenty-four (24) months from your transfer date, relocation expenses paid or reimbursed in the calendar year of your resignation and not repaid to the Company will not be tax assisted. All relocation reimbursements will be reflected as income on your W-2 and no tax assistance will be provided to offset the additional tax liability. Please also see Relocation Expense Repayment Provisions on Page 2 of this Handbook. If you have any questions regarding this policy, please contact your Cartus Relocation Consultant. Page 13 of 17
TAX ASSISTANCE All taxable moving expense reimbursements/payments are considered income to you and are subject to federal, state, local, Social Security and Medicare taxes. The IRS considers all relocation expenses paid either to you or on your behalf as compensation, except those expenses associated with: The sale of your home through the Relocation Company, Cartus The household goods shipment Storage of household goods for 30 days Final move expenses, excluding meals 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 Non- Specific Expense Allowance (NEA) detailed on Pages 4 and 5 of this Handbook 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. The loan origination fee associated with your new home mortgage is tax assisted for state and federal income tax on an interim basis. Since it is considered deductible on your state and federal returns, the year-end tax assistance program will deduct that interim tax assistance. However, it is tax assisted for Medicare and, if applicable, Social Security taxes. All transit cost (transportation of household goods and automobiles) and final move costs (travel and lodging) are considered excludable from income and therefore 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. Reimbursement for final move meals is considered taxable, is included in Box 1 income, and tax assistance is provided. TAX ASSISTANCE CALCULATIONS AND PROCEDURES Throughout the course of your relocation you will receive moving expense payments (e.g., lump sums for House Selection Trip and Interim Living, as well as your Non-Specific Expense Page 14 of 17
Allowance (NEA)), and reimbursements for other expenses incurred. 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; local tax assistance; 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-todate 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 yearend. 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 401(k) or pre-tax deductions, and Relocation reimbursements/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, state and local 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 tax assistance calculation. Your Non-Specific Expense Allowance (NEA) referenced on Pages 4 and 5 of this Handbook 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. ABOUT STATE TAXES Please refer to the Important Benefits/ Payroll Information on Pages 2 and 3 of this Handbook. IF YOU EARN THE SOCIAL SECURITY SALARY MAXIMUM OR MORE If your compensation (without relocation expenses) 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. The reimbursement (plus the Page 15 of 17
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 Cartus will send you a Relocation Summary Package at year-end, which will detail all moving expense reimbursements/payments. Tax assistance does not appear on this statement since it is the responsibility of ExxonMobil. 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 521 - Moving Expenses Publication 523 - Tax Information on Selling Your Home. To order these guides or necessary tax forms call 1-800-TAX-FORM. The Website address is www.irs.gov to view or copy the tax forms. Page 16 of 17
COMPANY TAX ASSISTANCE ON RELOCATION EXPENSES (1) For Relocations Greater Than 50 Miles EXPENSE CATEGORY 1. Home Sale Assistance - Amended Value - Guaranteed Offer 2. Qualified Residence Expenses - lease cancellation - direct home sale - new home purchase (excluding origination fee) FEDERAL INCOME TAX INFORMATION Reportable on Federal W-2 Tax Assisted By Company? Will Taxes Be Withheld At Time Of Payment? No No No Yes Yes No 3. Home Sale Incentive Payment Yes No Yes 4. Home Sale Loss Yes Yes No 5. Home Selection Trip - transportation, meals, lodging, etc. Yes Yes No 6. Qualified Residence Expenses - for 1% origination fee (2) Yes No No (2) 7. Expenses at Old Location: - meals, lodging, etc., incurred more than 24 hrs. after leaving old residence Yes Yes No 8. Final move- - travel (3) and lodging incurred to new location include 24 hrs after vacating old residence & first 24 hrs at new location - meals No Yes No Yes No No 9. Interim living expenses - incurred at new location after 1st 24 hrs - up to 30 days total under policy 10. Interim Living - over 30 days requires advance approval 11. Shipment of Household Goods - includes temporary storage 30 days - Additional storage- 30 days w/ approval Yes Yes No Yes Yes No No No No Yes Yes No 12. Non-Specific Expense Allowance (NEA) Yes Yes No 13. Cost of Living Allowance (COLA) Yes No Yes 14. Spousal Employment Assistance Yes Yes No 15. Tax Assistance on Taxable Relocation Expenses Yes Yes No (1) State and local taxes may also apply and will be assisted in accordance with prevailing local tax code. (2) At time of payment no taxes will be withheld. At year-end a true up will be done. Loan origination fees are tax assisted for FICA and Medicare only, as they may be tax deductible. (3) For mileage reimbursement, the first $.12 per mile is not taxable income. All mileage reimbursement over $.12 per mile is considered taxable income and will be tax assisted. Page 17 of 17