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International Permanent Transfer - Cost Estimate Line Item Assumptions
International Permanent Transfer - Cost Estimate Line Item Assumptions
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Written by Enrico Fuentes
Updated over a month ago

This article provides the general explanations, assumptions, and inputs for the cost estimate line items under the International Permanent Transfer Assignment case type. The calculation data for allowances is provided to us by AIRINC and the tax calculations are provided by Equus.


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.


Household Good Shipments Origin to Destination

The costs for shipping the employee's goods to the destination location. This is based on surface shipment costs from the origin location to the destination location.

  • Assumptions

    • Accompanying Family size of 1 get a 20 foot container (6,000 pounds)

    • Accompanying family sizes of 2 or more get a 40 foot container (12,000 pounds)

Inputs: Container Size, 20ft or 40ft.


Excess Baggage Origin to Destination

Assumptions

  • Allows the selection of the amount of extra bags for the employee when traveling to the destination country.


Cultural Training

This is based on the destination location and does not vary by accompanying family size.

Assumptions

  • The costs for the services of a cultural consultant or an online course to familiarize the employee with the destination location’s social and business culture.


Language Training

Assumptions

  • The cost of 40 hours of language lessons for the employee.


Pre Move Trip

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. This also includes as well 7 days of hotel meals car rental and gas in destination location. Includes employee and 1 accompanying family member when applicable. The length of stay can be changed at the cost estimate level or cost estimate template level.

Assumptions

  • Includes Round Trip economy airfare (based on Home Country to Host Country) hotel for 7 nights meals rental car and gas for 7 days (based on Host City). Maximum family size is 2.

  • The costs for round-trip economy airfare are based on the origin location to the destination location as well

Inputs: Location, Length of Stay, Airfare Class


Temporary Living Origin to Destination

The length of stay can be changed at the cost estimate level or cost estimate template level.

Assumptions

  • 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: Location, Length of Stay


Destination Services

Assumptions

  • The costs for a destination services provider to assist the employee and accompanying family members with house hunting, school registration, community orientation, setting up bank accounts, etc.


Immigration Fees Employee

Assumptions

  • The costs for the employee’s passport, visa, work permit, physical exams, and necessary vaccinations.

  • Immigration costs are based on the destination location and pre-move medical exam costs are based on the origin location.


Immigration Fees-Family

Assumptions

  • The costs for the accompanying family member’s passport, visa, work permit, physical exams, and necessary vaccinations.

  • Immigration costs are based on the destination location and pre-move medical exam costs are based on the origin location.


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


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

Users can manually input costs related to the move that are not subject to tax.

Assumptions

  • One-off non-taxable allowance


Miscellaneous (Taxable) Costs

Users can manually input costs related to the move that are subject to tax.

Assumptions

  • One-off taxable allowance

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