White Papers

A well-designed mobility program recognizes that need for balance and seeks to ensure that all the forms of relocation assistance are implemented effectively and economically while helping relocated employees maintain their job productivity during the transition period. As employee mobility continues to play a critical role in organization’s talent acquisition and management processes, effective relocation and assignment benefits are paramount to reaching corporate goals. Program Design is more than just establishing policy provisions and the final document. Consideration should be paid to underlying drivers of mobility.

Big Business today generates ‘Big Data’. As the amount of data generated increases exponentially, we are faced with the problem of how to collect, protect, and aggregate information effectively. Equally important is the ability to leverage information available to reduce costs, make better management decisions, and satisfy business requirements. When data comes from a single source, collection and collation is easy. However, the world of global mobility poses a much greater challenge to data users because information comes from a myriad of sources, often from different countries and in different currencies; Human Resources, Payroll, Accounts Payable, Third Party Suppliers, Benefits Administrators, and Government Agencies.

During the past decade, Buyer Value Option (BVO) programs have produced successful results with lower costs to the client; providing an excellent alternative to either guaranteed buy-out (GBO) homesale or direct reimbursement programs. The BVO Program is a form of homesale assistance typically offered by companies who provide a structured program designed to facilitate selling of the relocating employee’s home. It allows payment of specific approved selling expenses, often including Realtor commissions and stated non-recurring closing costs, associated with the sale of the home. When administered properly, the program provides a favorable tax option for paying these costs, significantly reducing total relocation expenses for both the employer and the employee; a win-win solution.

This paper describes IRS and Worldwide ERC (Employee Relocation Counsel) rulings with regards to the use of blank deeds when transferring titles. The use of a blank deed to transfer title in a relocation transaction is considered consistent with two (2) bona fide, independent sale transactions for federal tax purposes. In light of this, Paragon recommends the use of a blank deed in states/situations where it is appropriate. With the introduction of Revenue Ruling 2005-74, it holds that use of a blank deed complies with a sale having occurred for federal income tax purposes, potentially eliminating the use of two (2) deeds where state law and practices will allow and where the employer (corporation) follows the Worldwide ERC eleven key elements. As a result, Paragon recommends the elimination of two (2) deeds in states that do not have the following: notary statutes; false claim laws including Qui Tam; states that do not impose a state transfer tax/fees with transfer of ownership; real estate licensing issues; and states without withholding statutes.

This paper describes a new type of home sale incentive which may better drive the sale of a home in a declining real estate market. With the decline in U.S. domestic housing markets, companies are struggling with how to effectively drive its mobility goals. In order to offset extended marketing times and loss of equity, organizations are resurrecting guaranteed buyout provisions and home sale bonuses to ease the burden on the transferee.

This paper describes how recent developments related to Chinese Drywall compromises traditional homesale transactions and inventory management. There’s a new inspection issue to contend with in the U.S. Real Estate Market. In 2009, a new nemesis, Chinese Drywall, has become positioned to join the ranks of radon, synthetic stucco, and toxic mold. During the housing boom, new construction was at an all time high and domestic producers of drywall were unable to keep up with the demand. To fill that void, China offered a viable solution: the necessary supply of goods as well as lower costs to builders. However, as homeowners have settled into their new homes, many are reporting issues ranging from unpleasant sulfur (“rotten egg”) odors to corrosion of electrical and HVAC components which are being linked to the Chinese Drywall.