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| Q: I am going on an interview out of state. How should I ask about relocation funds? |
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A: Generally, if you don’t ask for certain relocation items to be reimbursed, you run a big risk that they won’t be paid. If you don’t individually negotiate for your special needs, you will fall under the employer's “general policy” catch-all, which may or may not be adequate to meet your needs. Most companies will have a policy about what relocation expenses they reimburse. If you are working with a recruiter, ask him this question. If not, the best timing for negotiating relocation expenses is after a job offer has been extended.
What should you ask for? The range of what is covered is all over the board. Sometimes it’s a fixed allowance like $5,000 that could work for a new graduate with little baggage – but would be woefully inadequate if you are trying to moving a family cross-country and could need ten times or more than that amount. Here are some of the items I seek in a richer relocation expense reimbursement package: one to three house hunting trips, paid airfare for visits home until you relocate your family, purchase of your existing home, moving your car or boat, paying closing costs on the home you sell as well as the new home that you buy, getting paid temporary housing for you, and temporary storage for your household goods until you move into your new home, and a miscellaneous extra cash allowance to help with the many expenses that crop up when you move. Ideally, all these expenses will be "grossed up" so that you don't pay income taxes on the amount the employer is required to add to your W-2 when they pay your relocation costs.
Beware any statements in your offer letter or employment agreement that you will have to repay the entire amount of your relocation package if your employment is terminated within a certain period of time. You should receive a credit for each month you work towards this repayment, and repayment should only apply if you voluntarily quit. The offer letter should clearly detail the relocation reimbursement to your satisfaction before you accept – and certainly before you resign from your current job.
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