Relocation LumpSum (relocation company, income, taxes)

[mark2010rocker]

I would appreciate if someone would help me understand the term "relocation lump sum". My company has said "They would pay me $10000 as a lump sum and Graebel relocation would manage my relocation". When I spoke to HR, she said that hiring company would not give me relocation money but Graebel will cut a check and give me. I had some questions and would appreciate if someone could answer it with previous experiences in relocating (especially when the term lump sum is used) or has any idea about it.

1) Would my relocation company Graebel give me a check of $10000 that I can deposit to the bank which means I can decide how to spend money?
2) Or Will it only give me money that I can prove I am going to spend i.e. flight tickets, initial expenses, deposits, rents, etc. and everything would need a receipt? If that is the case, then relocation lump sum amount is deceptive and not real because I was thinking to save some money from that to compensate for lesser pay that company is giving me.

3) Are there any tax benefits that I need to be aware of?


I need to make a decision before accepting the offer and hence would appreciate some inputs.

Thanks

[Charles]

Originally Posted by drevil08

My company has said "They would pay me $10000 as a lump sum and Graebel relocation would manage my relocation". When I spoke to HR, she said that hiring company would not give me relocation money but Graebel will cut a check and give me. I had some questions and would appreciate if someone could answer it with previous experiences in relocating (especially when the term lump sum is used) or has any idea about it.

1) Would my relocation company Graebel give me a check of $10000 that I can deposit to the bank which means I can decide how to spend money?
2) Or Will it only give me money that I can prove I am going to spend i.e. flight tickets, initial expenses, deposits, rents, etc. and everything would need a receipt? If that is the case, then relocation lump sum amount is deceptive and not real because I was thinking to save some money from that to compensate for lesser pay that company is giving me.

3) Are there any tax benefits that I need to be aware of?


I need to make a decision before accepting the offer and hence would appreciate some inputs.

Thanks

I don't understand why you are asking these questions on an internet forum instead of from the horse's mouth. You need to call the hiring company's HR department or relocation department and get a total understanding of this. I don't understand why you haven't done this. It seems like a slam dunk. Is there a company relocation manual? Did they provide any documentation or a process flow chart or table of benefits?

Yes, I have experience relocating, twice with full relo benefits. It is complicated but more importantly it is very specific and individualistic.

Yes there are tax implications. Some things are taxed at ordinary income, some things might be taxed as bonus income (for example a signing bonus). In my case, my employer paid all these taxes too.

You need to call them first thing Monday morning and get the facts.

Would you care to mention the company's name?

See if others are having problems:

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[jc76]

I would ask your company. Period. Hear it from them and maybe even get it writing so you have something to refer to just in case you need it later.

[nmnita]

my understanding and I have seen this happen before is: you will be given the money and you can do what you want with it. But like has been mentioned, get it clarified with your company. I have seen it work this way many times. It is actually easier for the company. Only HR can give you the answer. Of course you will get it in writing. It sounds like you work for a progressive and large firm.


Nita