How do competing companies utilize relocation benefits to
secure top talent?
One of the most important needs a family has when being asked to
relocate for their job is to sell their home. Without their home being
sole they can not typically afford to move. And in today's market with
sagging home values compared to the last two years, your employees homes are
sitting on the market for many, many months.
One of several solutions companies are using to assist their
employee with selling their home is to reimburse them for closing costs.
This can be very costly to a company. Therefore, companies are utilizing
Relocation Benefits to administer the transaction so that companies can offer
the benefit of closing cost reimbursements without the high cost of Tax
Equalization.
Buyer Value Option (BVO) Program
Cost benefits of utilizing a relocation
company when reimbursing closing costs on sale of employee's old home
Direct Reimbursement vs. Relocation Company
(based on a
$300,000 home)
| Direct Reimbursement |
|
Relocation Company |
| $18,000 |
Real Estate Commission (6%) |
$18,000 |
| $6,000 |
Closing Costs (2%) |
$6,000 |
| $13,440 |
Tax Gross-up (56%) |
$0 |
| $0 |
Program Fee |
$600 |
| $37,440 |
TOTAL |
$24,600 |
Savings of $12,840 per employee!
Contact Relocation Benefits today to
find out how you can take advantage of this cost savings program shown above.
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