Short Sales and Negative Equities

Swimming in an Underwater Housing Market

Short Sales and Negative Equities are the result of the harsh effects of a housing marketing readjustment. Allowing these types of housing situations into a Relocation Program provokes some interesting questions. Will the company be at risk by allowing unusual sales into the program? Would this really be the best time to relocate a family who is in this scenario? If the company does decide to move someone in either a short sale or negative equity situation, will the company provide hardship assistance to shield the employee from loss?

For further reading please click on the link below:

http://www.paragonrri.com/Paragon_Pulse/Paragon_Pulse_July_2009_Results.pdf

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Managing Compensation on a World Scale

All parts of preparing and arriving for an international assignment may go well; however, “don’t mess with the money”! Whether an assignee is paid on home or host, or split payrolls, paying and reporting compensation accurately and timely is a must as there are almost always potential tax consequences to missing or inaccurate information. One key to preventing such a debacle is to identify a means to capture international compensation from all possible data sources within a global organization, no easy feat as reported by some respondents to this month’s Paragon Pulse survey.

As an indication of how important and complicated global payroll can be, 47% of Paragon Pulse survey respondents said they utilize “over 5” different payroll systems/ providers with 1 to 10 internal employees dedicated to this initiative world wide. To keep pace with reporting, 50% of respondents collect international payroll data monthly, bimonthly or quarterly with 57% further reporting the same information for tax purposes up to 13 times or more in a calendar year.

In an article featured in the October 2008 issue of Mobility Magazine, it states “the penalty for out-of-compliance relocation payroll practices can exceed US$10,000 per move per year.” For countries across borders, punishment varies and may result in even higher costs to the corporation.

 

Global Payroll

Managing Compensation on a World Scale

Based on the survey, there is an indication that the frequency of compiling and reporting provides a checks and balances system that helps payroll professionals identify and reconcile any issues early that could turn into a potential problem with all (100%) of the survey respondents indicating an error rate of less than 1%.

For further reading please click on the link below:

http://www.paragonrri.com/Paragon_Pulse/Paragon_Pulse_March_2009_Results.pdf

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Commuter Marriage

Worldwide ERC defines a Commuter Marriage as one in which the transferee accepts a relocation and moves to the new work location without the spouse. The spouse and family remain indefinitely in the old location creating a commuting situation for the couple/family.

In 2007 the Worldwide ERC Family Issues report stated that nearly 75 percent of respondents to the survey have encountered and addressed at least one commuter marriage situation that resulted from relocation in the past two years, a significant increase from the 53 percent who reported having done so in 2003, the last time the survey was completed. And our Paragon Pulse results support those findings with 67 percent having encountered a Commuter Marriage relocation situation in the past two years.

For further reading please click on the link below:

http://www.paragonrri.com/Paragon_Pulse/Paragon_Pulse_Jan_2009_Results.pdf

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