Tax reform, technology and beyond! Find out how new tax laws have impacted the relocation industry and learn predictions for 2018!

1. 2018 EMPLOYEE
TRENDS
RELOCATION

2. ●
●
ABBY BAUMANN

3. ●
●
MICHAEL
KRASMAN

4. agenda
● UrbanBound Overview
● 2017 Changes to the Industry
● Tax Law Overview and How to Respond
● Predictions for 2018...and beyond

5. SHORT
TERM
HOUSING
STORAGE
VISAS &
IMMIGRATION
APARTMENT
LEASING
MOVERS
FLIGHTS
LANGUAGE
TRAINING
CAR
SHIPMENT
PHONE /
INTERNET
ORIENTATION
TOURS
PET
TRANSPORT
TRUCK
RENTAL
YOUR
EMPLOYEE
TECHNOLOGY

6. 2017: A
YEAR IN
REVIEW

7. Avg.household income
27% private sector
employees switched
jobs in 2017
4.1% unemployment
rate
More jobs posted
than people to
fill them
Healthy Economy

8. “When the unemployment rate is
lower,employers will adapt to people
rather than asking people to adapt
to them.”
-Lawrence H. Summers, Former Treasury Secretary

9. $$$
A HEALTHY JOB MARKET REQUIRES
THE NEED FOR COMPANIES TO
OFFER STRONG RELOCATION
BENEFITS

10. 2018 TAX LAW

11. 1. Changes to tax brackets for individuals
2. Increase in standard deduction
3. Lower corporate tax rate

12. Under the new tax law the
following moving expenses are
considered taxable:
● Household goods
● Storage
● Auto shipments
● Final destination travel

13. Gross Up
Company estimates
tax liability and
pays the tax for
the estimated
amount on behalf
of the employee

14. Direct Bill
Employer directly
pays a supplier
for certain
relocation
expenses through a
third party

15. OPTION 10 OPTION 11 OPTION 12
OPTION 13 OPTION 14
Paradox of choice

16. DIRECT
BILL
CORE/FLEX POLICY
$
URBANBOUND RECOMMENDATION
LUMP
SUM/ CAP

17. 17
1. ADD GUARDRAILS
OTHER WAYS TO CONTROL COSTS WITH NEW TAX LAWS
REVISIT POLICY. REMOVE BENEFITS
THAT ARE NOT NECESSARY.

18. 18
2. REDUCE CAPS
OTHER WAYS TO CONTROL COSTS WITH NEW TAX LAWS
SLIGHTLY REDUCE OVERALL CAP TO
STILL PAY THE SAME AMOUNT, BUT
ALSO PROVIDE GROSS UP TAX
ASSISTANCE TO RELOCATING
EMPLOYEE

19. 19
3. GROSS UP ON SELECT EXPENSES
OTHER WAYS TO CONTROL COSTS WITH NEW TAX LAWS
PROVIDE GROSS UP ASSISTANCE
ONLY ON SELECT EXPENSES, LIKE
HOUSEHOLD GOODS MOVE AND
FINAL TRAVEL

20. 20
4. RE-BUDGET
OTHER WAYS TO CONTROL COSTS WITH NEW TAX LAWS
NEW TAX LAW INCLUDES A BIG
CORPORATE TAX BREAK.
DISCUSS WITH INTERNAL TEAMS TO
SEE IF THERE IS AN OPPORTUNITY TO
RE-BUDGET RELOCATION PROGRAM.

21. PREDICTIONS
FOR 2018
& BEYOND

22. RELOCATION INDUSTRY TIMELINE
2010
2011 - 2012
2014
● No technology
● Industry is people and paper heavy
● Tech is introduced as a supplement to a lump sum program
● Developed for millennial and renter populations
● First indication of policy and benefits being built out and
supported by technology

23. RELOCATION INDUSTRY TIMELINE
TODAY ● TECHNOLOGY THAT CAN SUPPORT LUMP SUM AND
DIRECT BILL
● EXTENSIVE REPORTING CAPABILITIES
● SOLUTION FOR SMALL, MILLENNIAL MOVES, ALL THE
WAY UP TO C-SUITE MOVES
2018 &
BEYOND
● EMPHASIS ON EMPLOYEE EXPERIENCE
● INTEGRATION OF DISPARATE HR & PAYROLL SYSTEMS
● 100% AUTOMATION AND ARTIFICIAL INTELLIGENCE

24. THE RIGHT BENEFIT
TO THE RIGHT EMPLOYEE
AT THE RIGHT TIME

25. Where does the
journey go
from here?

26. Software will
redefine the way the
relocation industry
operates.

27. RELOCATION
MANAGEMENT
SOFTWARE

28. FULL TRANSPARENCY INTO RELOCATION SPEND

29. REQUEST A DEMO
abaumann@urbanbound.com
773-644-5697
www.urbanbound.com

30. QUESTIONS?

31. THANK YOU
WWW.URBANBOUND.COM