July 28, 2021
• If you offer pet shipment, do you cover for any pets acquired on assignment?
o Overall, more restrictions to bring a pet into the US is seen
o Most companies expect the cost of pet shipment to be covered out of Miscellaneous relocation allowance. Some exceptions are being noticed/approved
o Some companies see less pet being moved
o Potential/future increase due to “COVID pets”
• US immigration. How companies are dealing with restrictions and if there is much success with NIE applications?
o Moves are tending up in the last 30-45 days
o Companies are successful (mostly) with filing visa applications under the NIE provision (strong business cases/leaders with critical roles to play)
o Consulate appointment availability remains a concern in the overall visa process
o Challenges with an L-1 visa extensions (delays), some companies are forced to send employees back to their home countries to get the extension process via consulate rather than USCIS
o H-1B visa approval rate varies between 15%-30%
o Canada as an alternative work location for denied H-1b visa holders, increase traffic for business travelers
• One item I’d like to discuss with the group is regarding household goods move tax gross-up. I’d like to know if companies gross up the entire amount that is billed for HHG or just a portion of it? What portion is taxable? We were recently informed that we should only gross up the actual HHG amount and not the portion that is the RMC’s revenue. Basically, a portion of the charges billed to us represent what the RMC has earned as revenue for services. This revenue amount is treated as a reduction to the expenses—it’s basically treated as a nontaxable fee to the employee.
o Referral fee as a potential cost saving opportunity (tax)
• Has anyone undertaken any DEI (Diversity – Equity- Inclusion) initiatives for global mobility?
- Providers would need to separate this line item and treat it as a business expense
- GM Corporate to check with their tax providers on this and share the feedback during our next session in Fall
o Companies review their program/policies from the DEI perspective
- focusing on equity across the whole organization to minimize different offerings driven by businesses
- Looking at exception review process thru the lenses of DEI
- (gender/cultural differences are observed in negotiating relo packages, requesting exceptions; differences based on a company culture/lines of business
• Do companies track mobility drivers?
o Some companies do, they recognize company vs. employee-initiated moves
o Potential perspectives: company strategy – employee development – critical needs – personal accommodation
• ESG initiates in Global Mobility
o Implementing Discard and Donate programs
o Furniture rental/allowance in lieu of shipment
o Lump sums towards home search and travel (employees minimizing travels to new work location)