Putting People First
MANAGEMENT
RELOCATION BENEFITS
OVERVIEW
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Providence Health & Services is an equal opportunity Employer.
Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
TABLE OF CONTENTS
Introduction ............................................................................................................................2
Eligibility ...............................................................................................................................3
Time Limit on Relocation Benefits........................................................................................3
Why Providence Uses a Third Party Relocation Company ...................................................3
Home Finding Trips ...............................................................................................................4
Home Finding Assistance ......................................................................................................4
If You Plan to Buy In the New Location ...............................................................................5
Apartment Searching .............................................................................................................5
Sale of Old Residence - Home Marketing Assistance ...........................................................5
Travel to the New Location / Final Move Trip ......................................................................6
Making Travel Plans ..............................................................................................................7
Temporary Housing ...............................................................................................................7
Pets .........................................................................................................................................7
Moving Household Goods .....................................................................................................7
Rental Truck...........................................................................................................................9
Tax Implications ....................................................................................................................9
Expense Reimbursement Process ....................................................................................... 12
Contact Information ............................................................................................................ 13
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Providence Health & Services is an equal opportunity Employer.
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
Congratulations on your new position!
We are pleased to provide you with this guide outlining your relocation benefits. It also contains
some suggestions for getting your relocation off to a smooth start.
We understand that you are undertaking a significant life change that will affect you and your family.
Providence believes in taking care of people – employees and patients alike. Therefore, we are
extending professional, dedicated resources to assist you during this transition. Your move will be
handled with the utmost care.
To assure the best possible experience, Providence utilizes the services of Global Mobility
Solutions (GMS) a full service relocation company with headquarters in Scottsdale, Arizona. GMS
will administer, coordinate, and support you and your family during your move. If you have any
questions, your Relocation Coach will be happy to provide answers to your individual concerns.
Please call 800-617-1904 immediately if you haven’t already been in contact with you Relocation
Coach.
Working with GMS is American Escrow and Closing Company (AECC) who coordinates specific
parts of your relocation including expense reimbursement. Once you have spoken with your
Relocation Coach, within a few days you will receive a packet of information from AECC, including
expense reimbursement forms.
Please review this guide. Do not incur any expenses you expect to be reimbursable until you have
read this policy.
Before beginning your relocation there are several things that must be done:
1. Your recruiter must initiate your relocation with GMS.
2. The Relocation Repayment Agreement must be completed and signed by you and returned to
your recruiter. It is your responsibility to turn in the form to your recruiter. This form must be
completed prior to receiving any relocation benefits.
3. Most importantly, talk to your Relocation Coach before you interview, or make a commitment to
realtors, van lines or corporate housing providers. Your Relocation Coach is an expert in the
relocation industry and provides you with deep discounts.
Please call your recruiter as soon as possible and your relocation will be initiated. Once your
relocation gets under way, we know you will be extremely busy with both your new job and your
relocation. We also know you will have a lot of questions, so please call GMS whenever you need
further information or clarification.
Best wishes in your new job!
We hope you and your family are
soon settled into and feeling a part
of your new community.
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Providence Health & Services is an equal opportunity Employer.
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
Eligibility
Financial assistance is limited to the employee, the employee's spouse/partner and
dependent children, who permanently reside with the employee as of the date he/she
accepts Providence's formal request to relocate. Acquaintances, roommates, household
employees or friends are not eligible or covered under this procedure.
If your spouse or another member of your family receives relocation support from another
entity, please talk to your recruiter as your award may be reduced.
All reimbursable expenses must be completed and family and household belongings must
move within one year from the transfer or hire date per IRS guidelines.
Should you voluntarily cancel the move prior to beginning employment with Providence,
any dollars expended on your behalf are due to be repaid to Providence within 30 days of
the cancellation.
Time Limit on Relocation Benefits
Providence strongly urges you to relocate as soon as possible. If it is necessary to delay
your move, the relocation benefits explained in this guide are available to you for up to 1
year after the start date of your new job.
Why Providence Uses a Third Party Relocation Company
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There are significant savings for you and your family
GMS leverages their volume to provide deep discounts and faster delivery dates
with moving companies which will minimize travel/hotel expenses and maximize
your relocation funds
Your relocation coach acts on your behalf and counsels you on cost savings
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
Home Finding Trips
Providence will pay or reimburse you and your spouse/significant other
and up to 2 children living in the home of origin and who will relocate to
the destination location for expenses incurred during a maximum of one
(1) home finding trip, not to exceed 5 nights, to locate living
accommodations at the new location. If you are traveling over 200 miles, Providence will
arrange and pay for coach airfare, car rental, lodging and phone and meals. Airfare is also
reimbursable if arranged within 14-day advance notice including a Saturday overnight stay.
Reimbursable meal expenses will be limited up to $50 person/day. Child or elder care costs
will be reimbursed up to a maximum of $35.00 per day for the duration of the househunting trip. Expense reports must be submitted within 15 days of incurring the expense.
Home Finding Assistance (HFA)
Providence provides community counseling and Home Finding Assistance at no cost to you
through your Relocation coach. GMS specializes in helping transferring employees and
their families locate the right home in the right neighborhood quickly and easily.
Your coach is available to help you select a top
notch agent, manage your timeline and act as your
advocate. Please speak with your dedicated
Relocation Coach prior to making any
arrangements with a real estate agent in the new
location.
Your Relocation Coach will contact you and review the program. The program is available to you
whether you presently own a home or rent. The service is designed to assist you in selecting the
new community, neighborhood and home which best suits your particular requirements possible by
providing information about the area through face to face counseling, assessing needs and
arranging for a home search trip with a professional, knowledgeable, and experienced realtor.
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MANAGEMENT RELOCATION BENEFITS OVERVIEW
If You Plan to Buy In the New Location
If you were a renter in your old location and are going to buy a home in the new location
rather than rent, your Relocation Coach will refer you to a real estate agent.
Apartment Searching
Your Relocation Coach can refer you to an apartment finding service. Some of these
companies will not charge you a fee since they are paid a finder’s fee by the apartment
complex upon signing a lease. In addition, your Relocation Coach will send you a renter’s
packet with useful tips, tools and websites.
Sale of Old Residence - Home Marketing Assistance (HMA)
Providence provides Home Marketing Assistance at no cost to you through
GMS to assist in finding a buyer for your residence. However, because of
the variables associated with the sale of the old residence, it is strictly
against Providence policy to offer a home buyout or home sale financial
assistance. It is important to understand that all home sale costs will be the
responsibility of the employee.
Your Relocation coach will arrange for a representative from two qualified real estate firms
to visit your home to establish a range of value and ninety-day sales strategy. Your
Relocation Coach uses the data to complete a professional market analysis of the home and
formulate a marketing strategy with you and the agent you select. Your Relocation Coach
will stay involved to oversee and manage the agent to assure that the home is aggressively
marketed. If you have a preferred Realtor, please inform your relocation coach so she can
add this agent as one of your 2 options.
Your coach is available to help you select a topnotch agent, manage your timeline and act as your
advocate. Please speak with your dedicated
Relocation Coach prior to making any
arrangements to market and sell your home.
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MANAGEMENT RELOCATION BENEFITS OVERVIEW
Guidelines for Success
To accomplish the objectives of the Home Marketing Assistance program and to ensure the
best interest of you and Providence are served, we recommend that the relocating
employee:
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List the property within the selected Realtor’s recommended list price range. Do not
list the property any more than 105% of the upper end of the range.
Follow the marketing plan as designed by your Relocation Coach to enhance the
possibility of receiving an offer.
Utilize the expertise of your Relocation Coach when an offer to purchase is
received.
Accept any fully negotiated offer that nets 97% or more of the previously
determined market value.
Your Relocation Coach is your advocate and will ensure all actions are directed at
accomplishing a successful sale, since a timely home sale is critical to a successful
relocation. Maintaining an open communication line with your Relocation Coach is in the
best interest of your relocation process.
Travel to the New Location / Final Move Trip
You and your immediate family will be reimbursed for reasonable en route
expenses. If driving, the trip to the new location must be made by the shortest
direct route as determined by the AAA mileage chart. Vacation, extended
trips, personal side trips or leisure travel are not covered.
Reimbursable expenses include:
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Meals (up to $50.00 per day per person)
Lodging (one night per 350 miles traveled not to exceed $200/ night). A larger
budget may be approved upon request, due to family size.
Transportation (coach or economy airfare or mileage reimbursement at the current
IRS rate).
Tolls, parking, ferry fees
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MANAGEMENT RELOCATION BENEFITS OVERVIEW
Making Travel Plans
You should already be in touch with Providence’s contracted travel agent. If you have not
spoken with this travel agent please let your Relocation Coach know immediately.
Temporary Housing
For those employees who have moved to the new location in advance of their family, for
convenience of the Company, Providence will pay for the cost of lodging and a rental car,
for up to thirty (30) days, at a pre-approved facility. Gas, tolls and meals are not
reimbursable expenses. If the temporary facility does not provide a kitchenette, meals will
be reimbursed. Your Relocation Coach will do research and assist you in finding a
corporate housing apartment.
Pets
The relocation award may cover up to two household pets (such as a dog or cat) in the final
family trip via airline transport or professional pet transport, if sufficient funds are available
from the relocation allowance. Fish, rodents and farm animals are not considered
household pets, and are not covered by the relocation allowance. Providence assumes no
liability for the health and well being of pets while in transit or boarding facility.
Moving Household Goods
Providence utilizes the service of GMS to coordinate the transportation of
your household goods. Two (2) bids must be secured through GMS. A third
bid can be requested. The cost of moving household goods from your former
residence to your new home will be paid directly by Providence. Any
additional pick-ups and deliveries, or other special situations are at your
expense. It is recommended that you try to coordinate your shipment directly
from the origin to the destination to avoid excess handling of goods.
Your Relocation coach will arrange for the two (2) required estimates/bids. You will be
contacted directly by the moving company agent. The agent will make an appointment to
survey your household goods, schedule packing and pick up dates, and provide and
estimate delivery and unpacking date. All dates will be scheduled during the normal
workweek. Any weekend dates require prior approval.
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
Covered expenses include:
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Removal, packing and debris pick-up
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Transportation and cartage by a qualified carrier
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In transit storage charges up to 30 days
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Transportation by qualified carrier of up to one personal vehicle for moves over
500 miles
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Appliance service at origin and destination up to a maximum of $250
Providence does not offer the shipment or services relative to certain items including, but
not limited to the following:
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Boats, airplanes or other nautical or aeronautical devices
Trailers, campers and recreational vehicles
Livestock
Antique, highly stylized, or show-ready vehicles
Articles such as money, jewelry, securities, precious stones and/or metals and
valuable papers
Perishable or fragile items such as household plants, frozen foods, etc.
Bulk items such as lumber, building materials, etc.
Swing Sets
Above Ground Swimming Pools including hot-tubs
Installation or set up of pool tables
Antiques
Other items which require special handling
A $75,000 valuation is provided to protect your household goods against damage or loss.
Settlement of any claims for loss or damage is handled directly between you and the
moving company. Your Relocation Coach will act as an advisor should it be required.
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
Rental Truck
If you choose to rent a truck and move your household goods yourself, your Relocation
Coach can refer you to a company that provides a discount.
Tax Implications
Per Federal and State taxation laws, certain relocation expenses paid to you,
or to a third party on your behalf, are considered income and are therefore
subject to payroll taxes. As required by law, Providence reports
reimbursements and payments to vendors as income and these expense
payments will be reflected on your Form W-2.
Under current IRS guidelines and assuming you meet the IRS test for a Qualified Move,
expenses related to the actual move from the former residence to the new residence are
considered deductible/nontaxable. These expenses will be excluded from your income and
include the expenses related to the movement of household goods and personal effects, the
first 30 days of storage, and travel expenses relating to the one-way, final move trip to the
destination location for you and your family members including lodging and transportation
(according to a published IRS rate.) Because these expenses will not be reported as income,
you cannot take a deduction for them.
Qualified Move Requirements:
1. Distance Test: The distance between the employee’s former residence and new place
of work must be a minimum of 50 miles greater than the distance between the
employee’s former residence and former place of work.
2. Time Test: In the 12-month period following the move, you must be a full-time
employee for at least 39 weeks. This test may be waived in the cases of disability or
death, an involuntary separation from service (other than willful misconduct), or if you
are transferred again for the benefit of your employer. This test does not need to be
satisfied by the time you file your return as long as you expect to meet the test in the
future. In addition, the 39 weeks does not need to be in a row or for the same
employer.
3. Work Related Test: The move must be closely related in both time and place to the
start of work at a new job location.
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
All nondeductible/taxable reimbursements and vendor payments will be included in your
gross earnings on your Form W-2. You will be responsible for all applicable tax
withholdings on these payments. If the payment is issued to you, Providence Payroll will
withhold the applicable taxes at the time of payment. If the payment is made to a 3rd party
on your behalf, the tax withholdings will be deducted from future paychecks issued by
Providence.
During the month of January, you will receive a year-end report (Relocation Tax Report)
summarizing your reimbursed relocation activity and corresponding gross-up for the
previous tax year. This document will provide the information necessary to complete IRS
Form 3903. Our relocation provider, GMS, is also available to answer your questions
regarding the reporting of relocation expenses.
Taxes will be withheld from your pay in the pay period that taxable relocation
expenses are processed.
The tax rates are as follows:
Federal Income Tax (FIT) = 25% Flat Rate
Social Security Tax (SS) = 6.2 %
Medicare Tax (Med) =
1.45%
________________________________________________
Example:
Temporary Housing
$1,000.00
Taxes withheld: FIT
SS
Med
Total taxes withheld:
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Providence Health & Services is an equal opportunity Employer.
$250.00
$ 62.00
$ 14.50
$326.50
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
Benefit
Reported as
Income
Grossed-Up
Yes
No
Yes
No
Yes
No
No
Yes
No
No
No
No
No
No1
No
No
No
No
Yes
No
Home Finding Expenses
Up to 30 days Temporary
Living Expenses at final
destination
Lease Cancellation
Final Move Lodging
Final Move Transportation
Final Move Meals
Move of Household Goods
HHG Storage – First 30 days
Car Shipment
Up to 30 days Car Rental at
final move destination
If driving to the new location, a portion of the mileage reimbursement is excludable
based on IRS guidelines. The balance of the reimbursed rate is considered taxable.
1
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
Expense Reimbursement Process
Relocating employees are to submit ALL expenses directly to American
Escrow (AECC). Relocation expenses are NOT to be submitted to
Providence and Providence will not be responsible for submitting
expenses on your behalf. You will receive a packet with instructions and
options for reimbursement from AECC. Expenses will be reimbursed based upon current
Corporate Policy. Such reimbursements may include, but are not limited to:
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Homefinding Trip
Final move trip
Costs will be verified for the following:
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Mathematical accuracy and attachment of proper receipts
Compliance with Corporate Policy or Approval for exceptions
Reimbursements do not exceed individual and aggregate dollar limits within
Corporate Relocation Policy.
In addition to tracking those costs submitted for reimbursement by the transferee,
Providence will also track bills paid directly to suppliers by GMS or by Providence. These
may include payments made to:
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Moving van lines
Travel agencies
Total expenses will be reported and tracked for the purpose of generating a relocation tax
report (RTR) for the employee. This summarizes all cost data and identifies the deductible
and non-deductible amounts according to IRS regulations. Other notations:
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Providence may establish separate employee relocation policies and/or benefit
packages in the event of unusual or uncommon circumstances.
Providence will have the final right of decision when interpreting the terms of the
relocation benefits and programs described herein or in any communication with
the employee.
If you terminate employment prior to two years, you must repay prorated relocation
expenses previously reimbursed or paid by Providence. (See attached insert name of
Agreement)
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Putting People First
MANAGEMENT RELOCATION BENEFITS OVERVIEW
Contact Information
Global Mobility Solutions
Contact: Your Relocation Coach – Lori Herbert
Phone Number: 1-800-617-1904 ext. 8850
Email: lherbert@gmsmobility.com
For Administration questions, comments or changes desired in the program
and use of services regarding the overall program, contact your Providence recruiter at the
toll free number listed below
AK 800-478-9940
WA 866-776-8562
OR 877-564-6747
CA 800-947-7768
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Providence Health & Services is an equal opportunity Employer.
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