Whether you are handling your move on your own, or your employer an employer transferring team member. Transferring your family or your employee is a breeze.
If your company offers a lump sum moving allowance or relocation benefit for employees to select their own moving company, it is important to choose the right partners. Monaco Moves is ready to help you along the way.
It may seem wonderful that your company is giving you an allowance of between $5, 000 and $10,000 to move yourself and your family, but where do you begin?
The more you reach out to moving companies and realtors, it seems that the expenses are rising, and that $5,000 to $10,000 isn’t nearly enough to cover the move.
We help people move every year using their company-provided lump sum allowances. Monaco Moves will make your move a breeze.
Let us handle the dirty work, so you can focus on your career transition.
Your questions answered about corporate relocation and LUMP sum.
What is LUMP Sum?
Many employees who are being relocated to new locations by their employers for their career may be offered a lump sum allowance to cover the moving costs. The allowance helps employees to move their family and household and may seek out local corporate moving services such as Monaco Moves. To maximize this lump sum payment will require great management and experience of such a service to understand the financial paperwork and ins and outs involved. It is beneficial to both the company and the employee to offer a single allowance, rather than each expense in separate. Some reasons include easy budgeting, and knowing financial caps, or even minimizing tedious paperwork. When working with a LUMP sum, it is easiest to work with a single relocation company such as Monaco Moves to handle all of your needs at one time, with one single point of contact.
How do I know what I can use my LUMP sum benefits on?
A LUMP sum allowance can be used toward the expenses of all relocation benefits or for certain benefits only, such as temporary living and even home finding assistance. Some of these expenses can include:
- Area Tours
- Packing Expenses
- Temporary Living
- Rental Assistance
How does my employer calculate my LUMP sum?
Some companies may calculate the allowance internally based on past employee relocations, combined with current demographics for that particular area in comparison with the amount that company is willing to absorb.
Other times come companies choose to utilize the market research provided by a professional relocation company such as Monaco Moves. This would be based on certain variables such as family size, distance of the move and timeframes for benefits, current demographics, and the professional services.
Is my Lump sum gross for taxes?
Lump sum payments must be considered income, and the employee is required to pay taxes on the payment unless the company pays the taxes on the employee’s behalf. The choice to gross-up the expense for taxes is dependent on variables such as:
- Which components the lump sum is intended for
- The amount of the lump sum
- How the company has handled it in the past
There are important tax implications when receiving a lump sum moving allowance.
For more information on that, contact us today. You may also be eligible for a tax write-off. Contact us to see if you qualify.
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Relocation Expense Management
Monaco Moves will provide you with a free in-home consultation to determine your exact, unique needs. Not only will we find out exactly what those needs are, but we will work within your budget. Once we determine your requirements, we will provide you with one flat-rate single price quote so you will not have to worry about being able to afford additional charges, or any unwelcome financial surprises.
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