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Article: Do lump-sum payments ease relocation hassles?(includes related article on taxation of lump-sum payments)
- Article from:
- HRMagazine
- Article date:
- April 1, 1999
- Author:
CopyrightCOPYRIGHT 1999 Society for Human Resource Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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It depends on how you set up the program and specify use of the money.
Paying a lump sum, rather than reimbursing expenses, may appear to be the best way to compensate employees who relocate. But relocation consultants, moving companies and some employers point to several disadvantages, as well as to a need to be selective and to clearly establish what will be covered by the lump sum.
The use of lump-sum payments, a trend dating back to the late 1940s and early 1950s, is becoming more popular. Runzheimer International's 1997 Survey and Analysis of Employee Relocation Policies and Costs reported that 37 percent of respondents that currently do not offer ...