Move Allowance Lump Sum

Lump sum moving is a great benefit offered by some of the best companies to their valued employees. It is when a business gives an employee a certain amount of money to help with relocation costs. Companies do this because it helps to keep their teams less stressed and gets them back on the job shortly after a move.

How Does a Lump Sum Moving Service Work?

There are a few different ways that companies can offer a lump sum moving benefit. First, they can offer a set amount of money up front. This money can be used however the employee sees fit, but they must report it on their taxes. As you can see, there are lump sum moving allowance tax implications to consider.

Companies can also work directly with a moving company to set up the move directly. This takes yet another step out of the employee’s hands and keeps them focused on their work. Reimbursement is another popular option for a lump sum moving allowance. The employee pays for everything, and then the business pays them back. With the latter two options, the employee does not have to report the lump sum relocation money as income, saving on taxes.

Why Do Companies Offer Lump Sum Moving Services?

One of the main reasons companies offer a lump sum moving allowance is because it creates loyalty within the business. It may also save the company money in the long run. It can be used to save money on employee travel, and may even save your HR department money because they will have to do less work with onboarding and offboarding if it is easier for the employees to simply stay with the company if they would like to move somewhere else.

Take the Leap with Fleet53

Whether you are a company considering setting up a lump sum moving program or an individual who has received a cash payout for relocation services from their employer, we are here to help. Let our team of local moving experts make your move easy so you can get back to what matters! Contact us to find out how to start planning your move with Fleet53.