This article provides the general explanations, assumptions, and inputs for the cost estimate line items under the Short Term Assignment case type. The calculation data for allowances is provided to us by AIRINC and the tax calculations are provided by Equus.
Hardship Allowance
This amount is based on the destination location.
Assumptions
Incentive compensation is provided to the employee for destination locations where living conditions are particularly difficult because of harsh climate, political instability, physical risks, etc.
Pro-Rate Based on Months
Inputs: Destination City
Housing Allowance
This amount is based on the destination location as well as the type of accommodation. The default type of accommodation is based on the length of the move but can be changed at the cost estimate level or cost estimate template level.
Assumptions
The cost of rent in location for the employee and accompanying family members. This assumes the employee has a job level of executive.
The default is determined by the length of the move
Moves less than 3 months the default will be calculated as the cost of a single hotel for the length of the move.
Moves more than 3 months, the default will be calculated as the cost of a corporate apartment for the length of the move.
Pro-Rate Based on Months
Inputs: Hotel or Corporate Apartment and Destination City
Per Diem
A daily allowance based on the destination city that covers costs for laundry, personal care, and a mix of groceries and restaurant meals.
Assumptions
Includes:
At home meals
Laundry
Personal Care
Restaurants Meals
Inputs: Destination City
Transportation Allowance
This is based on the destination location.
Assumptions
Includes:
Fuel
Rental Car
The daily rental car and fuel cost in the destination city for the length of the move
Pro-Rate Based on Months
Inputs: Destination City
Home Leave Employee Reimbursement
This amount is based on the origin and destination location combination as well as the airfare class. By default, the airfare class is assumed to be business but this can be changed to economy at the cost estimate level or cost estimate template level.
Assumptions
Roundtrip business class airfare
The round-trip economy airfare costs to transport the employee to either the home location or an alternate location for the purpose of maintaining familial and business relationships and/or to obtain goods and services not available in the destination location.
Pro-Rate Based on Months
Inputs: Number of trips, Airfare class
Medical Insurance
This amount is based on the destination location and family size.
Assumptions
Rate * Family Size
The incremental cost to the employer for providing an international health insurance and dental plan. This is based on monthly costs in the origin location and varies by the accompanying family size.
Pro-Rate Based on Months
Tax Services
The costs for tax preparation and tax planning services through an outside tax provider. This is based on one annual amount in the destination location and does not vary by family size.
Assumptions
An additional 2000 USD to support additional filing requirements is added annually when the origin location is the United States.
Airfare Origin to Destination
This amount is based on the origin and destination location combination as well as the airfare class. By default, the airfare class is assumed to be business but this can be changed to economy at the cost estimate level or cost estimate template level.
Assumptions
One-way business class ticket * Family Size
The costs for one-way economy airfare from the origin location to the destination location for the employee and accompanying family members. This includes 3 extra bags per person based on the origin location.
Inputs: Airfare Class, based on Family Size
Air Shipment Origin to Destination
Assumptions
The costs for shipping the employee's goods to the destination location via air shipment. Includes up to 500 lbs of goods.
Excess Baggage Origin to Destination
Assumptions
Allows the selection of the amount of extra bags for the employee when traveling to the destination country.
Temporary Living Origin to Destination
The length of stay can be changed at the cost estimate level or cost estimate template level.
Assumptions
Host City Per Diem Data including hotel, meals, rental car, and gas for 14 days. Varies by family size.
The costs in the destination location at the start of the move result from the employee and accompanying family members not being able to move into long-term housing immediately. This includes 14 days of hotel, meals, rental car, and gas in the destination location.
Inputs: Length of Stay
Immigration Fees Employee
Immigration costs are based on the destination location and pre-move medical exam costs are based on the origin location.
Assumptions
The costs for the employee’s passport, visa, work permit, physical exams, and necessary vaccinations.
Relocation Allowance Pre-Move
The default value is based on 10% of the base salary of the employee. The percentage of base salary can be changed at either the individual cost estimate level or the cost estimate template level.
Assumptions
10% of salary
A lump sum of 10% of the employee’s base salary to cover miscellaneous relocation expenses.
Inputs: % Salary
Airfare-Return to Origin
This amount is based on origin and destination location combination as well as the airfare class. By default, the airfare class is assumed to be business but this can be changed to economy at the cost estimate level or cost estimate template level.
Assumptions
The costs for one-way economy airfare from the destination location to the origin location for the employee and accompanying family members. This includes 3 extra bags per person based on the origin location.
Inputs: Airfare Class
Excess Baggage Return to Origin
Assumptions
The cost of 3 extra bags for the employee when traveling to the origin country.
Air Shipment-Return to Origin
Assumptions
The costs for shipping the employee's goods to the destination location via air shipment. Includes up to 500 pounds of goods.
Temporary Living Return to Origin
The length of stay can be changed at the cost estimate level or cost estimate template level.
Assumptions
Host City Per Diem Data including hotel, meals, rental car, and gas for 14 days. Varies by family size.
The costs in the origin location at the end of the move result from the employee and accompanying family members not being able to move into long-term housing immediately. This includes 14 days of hotel, meals, rental car, and gas in the origin location.
Inputs: Length of Stay
Relocation Allowance Return to Origin
The default value is based on 5% of the base salary of the employee. The percentage of base salary can be changed at either the individual cost estimate level or the cost estimate template level.
Assumptions
5% of Salary
A lump sum of 5% of the employee’s base salary to cover miscellaneous relocation expenses.
Inputs: % Salary
Relocation Fee
Assumptions
The cost of relocation services provided by a supplier.
Managed Services Fee
Assumptions
The cost of managed services provided by a supplier.
Miscellaneous (Non-Taxable) Costs
Assumptions
One-off non-taxable allowance
Miscellaneous (Taxable) Costs
Assumptions
One-off taxable allowance