Life in NYC!
There is a very interesting post on the expat forum entitled “Expat package to live in New York” which will be very interesting for those who regularly work in different countries for their employer. Moving to another country, even though you may have the support of your employer, can be very difficult with each country and even state to state being very different in the way they treat taxes, the cost of living and other simple elements which many of us take for granted.
This particular post was created by a husband and wife, with no children, where the husband appears to regularly travel around the world on short-term assignments for his employer. Originally from France the family have worked in the UK and the Far East and now they have the opportunity for a three-year stint in New York City. So what exactly do they have to consider and what do they need to watch out for?
Entry to America
While since 9/11 there has been a significant increase in security by the American authorities, sponsorship by your employer is one of the quickest methods and the easiest methods to gain entry and to gain access to the employment market. Thankfully this particular poster has access to the employer sponsor option and the main thrust of the thread seems to be what kind of relocation package and allowances should be collectively requested from the employer.
Issues to consider when relocating
There are many issues to consider when relocating from country to country, or even state to state in America as we will cover later in the article, which include:-
Parity with your current employment package
It is vital that when you move from country to country for the same employer you ensure that the package offered to you gives at least parity with what you are currently earning and the added extras which you may have. Sign up to a package which pays the same gross amount may not see you end up with the same net amount and could see was substantially worse off.
Your starting point should be that you wish to have parity guaranteed with your current package with potentially higher allowances if the cost of living in the country and area you are moving to is more expensive than you are used to. If you make a mistake when agreeing your initial package it is highly unlikely that you’ll be able to amend this in the future.
Taxes
There are some very interesting comments with regard to taxation on the post with the confirmation that you will pay the taxes to both New York State and NYC which can be very costly if the situation is not taken into account within your relocation package. In this particular situation it appears as though the husband is still being paid in his homeland of France even though he is actually working on foreign soil. Dual taxation agreements come into play here – and there is also the suggestion that for those living in the US and working away from their home state, the issue of internal dual taxation may also be a very serious issue!
Thankfully, in this particular situation the couple in question have assistance from well-known accountants KPMG via their company although not everybody will be afforded this luxury. For those in a similar situation it is vital that you take tax advice because any mistake could be very costly and potentially put your employment position at risk.
Transport
Interestingly the couple in question have had access to transport in the past which was paid for by the employer. However, it would appear that when they moved to Hong Kong there was no need for personal transport such as a car and question has arisen again with regards to remove two New York City. There is a suggestion on the thread that a car would actually be detrimental if they were able to negotiate a pad in the city close to work.
It is bizarre to find out that while we often assume personal transport is a must when moving overseas this is not always the case although it does depend upon which country and which state in particular you are working in. The distance from your employer’s office is also something which needs to be taken into account as well as the cost and time spent commuting via public transport. This is an interesting discussion with no right and no wrong answer for any one situation.
General shopping
The situation regarding simple grocery shopping is mentioned on a number of occasions in the thread, something which many people seem to ignore at their peril when moving overseas. Thankfully advice has been given which should ensure that the couple involved are able to price their budget prior to moving and use the data when trying to renegotiate their relocation package.
It would also appear that Internet grocery shopping has taken off in New York City, something which may be foreign to many people who move to the States with their current employer. Very often trends which start in America can very quickly move to Europe so maybe this is something we would need to consider at some point in the UK?
Employment for your spouse
In this particular example it is the husband who has guaranteed employment in the States with his current employer although his wife is looking at the possibility of part-time work and what paperwork would be required to sort this out. The suggestion is that the husband will have an L1 visa sponsored by his employer which automatically gives his spouse the option of an L2 visa which she can use to gain part-time employment. However, bearing in mind the current economic situation in America and around the world her chances of immediate employment even in the part-time sector would appear fairly thin.
Conclusion
While we have covered the main subjects which need to be consider when looking to negotiate a relocation package and relevant allowances, there are many more issues to consider which include medical cover and the fact that you need to guarantee that you will not be left high and dry if for some reason the branch you are moving to was closed down. Would you be relocated back to your homeland? Would you receive any form of compensation? What guarantees are present in your relocation agreement?
There are many issues to consider when moving overseas for new employment and for employment with your current employer. Even though many employers will offer you the best advice it is essential that you also do your own homework and ensure that everything is clear in your mind. Even those who regularly move to different countries or different states with their employer find it difficult to fit in straight away and those who are doing this for the first time need to be sure they know what to expect and what they need to negotiate to retain their current standard of living.
Related posts:
