What to Know About Relocating Goods Internationally

by | Jul 27, 2017 | News

When moving internationally, one of the biggest decisions your employees will have to make is whether to ship their personal belongings to their new location or buy new after the move.

For employees wanting to ship their belongings, there are some things to consider:

  • Customs requirements in the departure and destination countries
  • The size of their shipment
  • Shipping options available
  • How the selected shipping option affects delivery timeframes

Similar to a U.S. relocation, international movers will pack an employee’s goods themselves, as the mov­ers are trained experts in evaluating items for international freight and making sure no items are includ­ed that violate customs. This could cause major delays in delivery. Detailed inventory forms need to be completed for both customs and insurance purposes. It’s important for your employees to complete these forms in a timely manner to avoid delays or penalties.

 

Types of International Shipments

Air Shipments

Air shipments are for smaller containers shipped via air. The shipments typically have a shorter tran­sit time of 1 – 2 weeks. Air containers are ideal for personal items needed shortly after arrival in the new location, such as clothes and children’s toys.

There are two main types of air containers: D containers and LDN containers, which are both pre-built containers:

  • D containers are ideal for the essential be- longings of individuals or smaller families
  • LDN containers are more typical for larg- er families, or for those not planning to transport goods via sea as well
Sea Freight

Depending on destination location, many interna­tional moves require the use of sea shipments. Sea shipments are ideal for larger shipments but have transit times of anywhere from a few weeks to a few months. Transit times are impacted by customs and practices of both the departure country and the destination country. Freight containers are metal and come in three main sizes: 20 ft., 40 ft., and 40 ft. high capacity containers:

  • 20 ft. containers are ideal for 2 – 3 bed-rooms, or individuals and small families
  • 40 ft. containers are most ideal for 4 – 5 bedrooms, or larger families with children

The moving company will conduct a visit at the employee’s home to determine which shipping option and container size is ideal for each situation.

How WHR Group Can Help

WHR Group works with a network of international movers that specialize in packing and customs requirements. It is important to support your employees with experts that understand these require­ments and what can and cannot be included in their international shipments so that your employees arrive comfortably to their new home.

The Importance of International Tax Assistance

by | Jul 13, 2017 | News

Global compensation management and tax compliance can both significantly impact an employee when relocating across country borders. Regardless of whether the relocation is permanent or simply a short-term assign­ment, all relocation-related expenses will likely raise tax issues in both departure and destination countries.

This is why it is critical that the potential tax exposure from relocation reimbursements be monitored so that accurate tax returns can be filed in both the old and new country locations.

U.S. Employees’ Unique Tax Obligation

U.S. citizens are required to file taxes on their global income regardless of where it was earned and in addition to the tax fil­ings required in the country of assignment. When an employee transfers out of the U.S., they must still file a U.S. Federal Income tax return. However, the U.S. does provide a foreign tax credit that can be applied to the employee’s return, which means the amount owed in the U.S. could be nothing or a neg­ligible amount, but they are still required to file.

The Importance of Tax Equalization

It is strongly suggested that you provide tax equalization for employees relocating inter­nationally. This allows your employee to pay taxes as they would in their original country, with you covering the difference. This benefit is becoming more common because it taxes people at the same amount had they never taken an assignment. You would then cover the cost of the host location tax and any ad­ditional U.S. obligation that may be incurred.

For example, let’s say you are moving an employee from the U.S. to Italy. The employ­ee has a $28,000 income tax liability to Italy, but their U.S. liability would only be $25,000. You would then pay the additional $3,000 to the Italian tax authorities on your employee’s behalf.

**It is essential that the employee remain tax compliant while on assignment or after a permanent transfer. Failure to report income accurately makes the employee liable; however, if the company does not provide any support or assistance, then you run the risk of being seen as complicit as well.

How WHR Group Can Help

WHR Group provides a complete framework for tracking all expenses associated with an employee’s assignment or permanent trans­fer across borders. The data is collected and broken down into what was paid and which country the payments originated from. All of this information is then provided to a local tax expert in the relevant countries so that the appropriate tax filings can be completed. This process ensures that the employee has filed taxes in the correct countries and that the taxable relocation expenses have been considered as well.

This Service Can Make or Break a Relocation

by | Jun 22, 2017 | News

Dual-Career Assistance: The one service that can make or break a relocation

When planning your global relocation program, you need to consider the relocating spouse/partner’s situation as well.

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More often than not, the employee’s spouse/partner has their own career, so moving to a new location means they most likely have to leave that career behind, along with the family’s secondary income.

More on Dual-Career Assistance

Understandably, the impact of relocation on the career of a spouse/partner can be a major hurdle. WHR Group offers third-par­ty programs that can help address this important concern and provide support services, such as assisting with career/résumé counseling and offering access to local networking groups.

Dual-Career Assistance helps relocating families better adjust to a new loca­tion as a whole. Common benefits for a spouse/partner receiving this service include:

  • Pre-assignment counseling
  • Finding networking opportunities
  • Résumé preparation
  • Interview skill assessment
  • One-on-one coaching
  • Acquiring work permits
  • Job search assistance

Why is Dual-Career Assistance important?

The employee’s spouse/partner should be aware of existing obstacles to finding employment and maintaining a career after relocating. They also need to under­stand the many personal, professional, and financial implications that the reloca­tion might pose, especially if moving to a different country.

However, providing Dual-Career Assistance as part of your global relocation program can be the deciding factor on whether or not your employee will accept the re­location opportunity. Not only does this service minimize any financial risk to the relocating family, it also allows the spouse/partner to feel just as included and purposeful as the relocating employ­ee and avoid the struggle of finding work in their new surroundings.

The Importance of Immigration Assistance

by | Jun 8, 2017 | News

Immigrating to a new country requires several steps, so it can often be difficult for an employ­ee to decide where to start after receiving their new international assignment.

Every country has its own immigration laws and requirements that will need to be followed for the employ­ee to have a successful relocation. Providing Immigration Assistance as a formal relocation benefit will help your employees get started on their move and, ultimately, reduce their stress throughout the process of settling in abroad.

Here are three tasks to have your employees complete immediately.

1. Applying for a Passport

All relocating family members will require passports for the upcoming move, which is why it should be the first item acquired.

A passport is necessary for travel, work visa applications, and school applications. Typically, this is the easiest document to obtain, but can take 6-8 weeks from the time of application to delivery; however, this timeframe can be expedited for an extra fee.

At WHR Group, the Relocation Counselor will en­sure the employee and family obtain passports in a timely manner and confirm any existing passports do not expire within the next year, in which case the employee will want to have them renewed to avoid any future issues.

2. Applying for a Work Visa

If your employee is going to perform any work in a new country, they will be required to have a work visa, even if it is just for a short-term assignment. This is arguably the most important document required in an international reloca­tion, since an employee’s ability to perform work depends on it. The employee should start the application process as soon as possible, as it can take weeks to months before the visa is approved (depending on the destination coun­try’s regulations).

The following documentation may be required for a work visa application but not limited to:

  • Passports for each family member
  • Birth and marriage certificates
  • Divorce/adoption papers
  • Additional passport photo(s)

3. Asking Questions

Moving abroad can seem like an overwhelming process, which is why your employee is going to have questions, especially if this is the first time they have relocated internationally. They should inform their Relocation Counselor of any questions, concerns, or fears as early in the process as possible. This will ensure the relocation company provides employee-specific consultative services by helping them better understand their benefits, new position, and what is required of them.

With the help of their Relocation Counselor, Destination Service Pro­vider, and your HR department, we aim to offer the employee a smooth transition into their new country.

How WHR Group Can Help

Our aim is to coordinate and manage this pro­cess with the relevant authorities on behalf of the employee, which is why we provide assis­tance and advice in securing visas/work per­mits through our approved partners. We work closely with these partners to provide a variety of methods to monitor, measure, and improve the quality of services delivered. During this process, we also work closely with HR units to ensure all paperwork and visas are compliant and all activity is recorded.

Find out More about the Benefits You Should Offer to Your International Assignees

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WHR Group’s Self-Move Technology

by | Jun 6, 2017 | Press Release

WHR Group Inc. (WHR) recently launched SimpleMove™, a proprietary self-service relocation technology. The lump sum-based technology connects relocating employees with move experts in their area to add stability and remove stress from the self-move process.

SimpleMove™ combines the custom framework and service-oriented vision of WHR’s existing technologies with user-friendly navigation as well as instructional videos for completing a self-service move. Companies can offer their lump sum tiers access to WHR’s trusted partner network and negotiated rates—for everything from hotel stays and truck rentals to homefinding agents and pet transportation. SimpleMove™ also provides easy quote requests, a budget and receipt tracker, and is mobile friendly.

WHR’s president, Paul De Boer, expanded upon the significance of the SimpleMove™ technology: “This represents another milestone of our proprietary Global Relocation Platform that provides innovative tools for our clients and their globally mobile workforce. Our clients are already utilizing SimpleMove™ and exceeding our initial expectations.”

WHR is a privately owned, workforce mobility firm focused on advancing lives forward for global employers and the employees they relocate.

For more information about SimpleMove™ or other WHR relocation technologies, contact us at (800) 523-3318 or [email protected].