Relocation Bonus (Chicago, Manhattan: apartment, lease, deductible)

[Flicka6]

Hello everyone. I was hoping someone could help me with a question about relocation bonuses.

I will be relocating to Chicago sometime in July and the company that I will possibly be working for is offering a relocation bonus and has asked me to give a ballpark figure of what I will require in relocation money should I take the job offered to me.

A bit about me:

• Mid 20's female new grad moving into the northern part of the city from northern Minnesota
• I'll be working in healthcare making approx. 35k+benifits starting
• I am working through a recruiting firm that is offering the relocation bonus
• I don't have a lease to break or anything, I mainly wanted some money for traveling expenses and help with renting a u-haul and getting an apartment set up

So, what kind of amount should I give them? Does anyone know what a typical amount would be for a single person relocating to Chicago? I just don't know. Hope you guys can help. Thanks!

[chet everett]

Based on your salary level I would ask for 10%. Maybe 15%, if you ask for more be prepared to take much less...

The other part of the equation is just how "rare" is your skill and how quickly do they need you to start? If you know there are few others capable of doing what you can (which is almost never the case for a new grad...) you can ask for something that would otherwise be outrageous for your salary level ($10K), but if they NEED you to start ASAP they might just do it...

[surlycue]

If you need a medium sized u-haul (18-20 ft) + gas money I would tell them about $1000. It will probably end up being cheaper than that by $200 or so but if when you arrive you feel like you need to hire a couple of hourly guys to do the heavy lifting or if you live on the 2nd or 3rd floor of a non-elevator building you will probably end up paying them that for a day's work.

If you would rather hire a moving company that comes to your place packs everything, ships and then unpacks everything in Chicago I would tell them about $1600-1900.

[Flicka6]

Thanks to the both of you

I was thinking $1-2k would be a reasonable amount to request. I just didn't want to lowball it and end up getting taken advantage of due to my lack of experience.

I see that some places take your receipts and then reimburse you after the fact. Sounds like a good way to go, but that would require having the money in the first place

[sueprnova]

Don't forget the more you take the more you have to claim as income when you file.
When we moved we paid for it out of pocket and claimed it on our taxes with no $ or reimbursement from the company we relo'd for

[jlawrence01]

Originally Posted by sueprnova

Don't forget the more you take the more you have to claim as income when you file.

So if your employer offers you $2000, you are going to say, "forget it, I'll have to pay taxes on it." Using that logic, you'll turn down wage increases?

[coldwine]

Originally Posted by Flicka6

Hello everyone. I was hoping someone could help me with a question about relocation bonuses.

I will be relocating to Chicago sometime in July and the company that I will possibly be working for is offering a relocation bonus and has asked me to give a ballpark figure of what I will require in relocation money should I take the job offered to me.

A bit about me:

• Mid 20's female new grad moving into the northern part of the city from northern Minnesota
• I'll be working in healthcare making approx. 35k+benifits starting
• I am working through a recruiting firm that is offering the relocation bonus
• I don't have a lease to break or anything, I mainly wanted some money for traveling expenses and help with renting a u-haul and getting an apartment set up

So, what kind of amount should I give them? Does anyone know what a typical amount would be for a single person relocating to Chicago? I just don't know. Hope you guys can help. Thanks!

It completely depends. What you want to ask for is compensation just a little above what you'll be paying to live in Chicago. You're coming from northern Minnesota, so "relocation bonus" for you really just means "I need to make sure I get as much as possible to keep my standard of living".

Rent will be much higher than what you are used to. Food, too. Other things, like entertainment, will also be pricey.

I'm not saying it's Manhattan, but you have to adjust for what you will be spending. Do your research and ask for compensation to that level, because that you can justify as necessary cost of living raises. Then add in a little more for your own pocket

When I was asked to move from Manhattan to Chicago, I charged an arm and a leg because I could. New Yorkers call it "expatriation pay" because you have to leave Manhattan. I was happy to leave, I was also happy to nickel and dime my firm.

When I was asked to leave the country, I asked for a $150,000 raise with additional capital being allocated. Cost of living is key, but quality is also a concern.

[surlycue]

Originally Posted by coldwine

When I was asked to leave the country, I asked for a $150,000 raise with additional capital being allocated. Cost of living is key, but quality is also a concern.

Coldwine, are you in Sao Paulo now? What does a 1 bdrm run in city center?

[JohnCU]

Employers generally have policies on relocation expense reimbursement, and generally it isn't much for entry level jobs. The recruiter is supposed to know this stuff as part of the position parameters -- they should be counseling YOU on what this particular employer likely will/won't spring for.

[ccjarider]

The comment about taxes is true. This reimbursement is taxable income and will show up on a W2 or 1099 form. During my last relo, I asked for 30% on top of need to cover taxes.

Also keep in mind that certain expenses you incur are deductible, since your move is job related. Go to IRS web site for info and keep good records.

Congratulations on the new job and welcome to IL!