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Educating employees on the proper aspects of relocation expenditure is absolutely key in lump sum policies. This means not only detailing what they should be using the payment for, but making sure that they’re familiar with laws regarding taxes and lump sum. Lump sums present a higher risk of encountering unqualified suppliers.

Here’s some ways that employees have misused their lump sum relocation funds. A man who was relocating to New York from Toronto received a lump sum amount of $30,000. He decided that instead of hiring a proper moving company that he was going to do-it-himself and pocket the rest of the money.

 · The move follows SNC’s July 22 announcement that it would reorganize into two main business lines and stop bidding for so-called lump-sum turnkey construction contracts in a bid to reduce risk.

Lump-sum relocation packages obviously have their advantages. Otherwise, none of us would ever use them! When employers favor them, they do so because: They have a lower front-end cost. They seem to be an easy, "hands-off" way to manage employee relocation. In some cases, lump-sum relocation packages provide greater flexibility to employees.

A negotiated lump sum payment that allows you to keep whatever you don’t spend is a popular benefit, but you could get stuck with unexpected out-of-pocket expenses. Review the standard relocation package before signing the agreement to make sure you understand the terms and conditions.

In 2018, the company made some $780 million in operating earnings from its engineering services division, while losing $240 million from these lump-sum turnkey projects. It’s a smart move to get.

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Calculate Your Estimated Relocation Cost with our Helpful Tool. Different needs require different investments in the move. Determine which services you will need and which you would like to handle yourself to find out how much you should expect to spend on your relocation.

To achieve this, employers often offer employees a lump-sum package – an allowance given to the assignee to cover the cost of relocating overseas. According to a recent survey by the Society for Human Resource Management, lump-sum payments are the single most popular relocation benefit offered by companies.

On paper, lump sums look like a great option for both relocating employees and the companies that move them. They’re easy to administer, and allow HR managers to flex with the needs of their talent.