COST OF LIVING ALLOWANCES
Compensating employees traveling across borders for the incremental cost of purchasing goods and services in another place is common practice for global companies. We research costs in each location and offer you a choice of:
- Frequency of updates
- Level of subsidy you want to provide
- Exclusions to avoid double payments
An important piece of a successful assignment is acquiring housing for your employees that is:
- Convenient to your offices
- Affordable to the business
- Equitable to their peers on global assignments
We provide comprehensive assessments of global housing markets as well as housing budget recommendations to help you set employee expectations before they go searching for a place to stay.
Typically, tax is one of the biggest costs tied to sending someone on a global assignment. We provide tax support for:
- Employee hypothetical withholding taxes for tax-equalized assignments
- Tax gross-up calculations for cash payments
- Estimated tax costs for a global assignment
All of our tax services are developed in-house by our team of global tax experts with international tax accounting backgrounds.
Traveling across borders for work may present a specific challenge such as:
- Violence and hostility
- Political instability
- Poor infrastructure
- A difficult climate
We offer objective assessments of thousands of cities worldwide, so you can provide premiums and incentives where appropriate based on your industry and global footprint.
Many companies have streamlined how they provide airfare assistance to employees by converting a once reimbursed expense into a cash payment. We provide an allowance to cover home leave, R&R, or relocation airfare, and budget recommendations based on a specific set of assumptions:
- Class of fare
- Booking restrictions
Education for a global employee’s children can be an important deciding factor on whether they accept an assignment. And it can be a very large expense if their children need to go to an international school. We give you concise reports with the upfront and ongoing costs of schools worldwide, so you can evaluate what level of support to provide.
Companies may provide transportation assistance to employees traveling across borders, including:
- Assistance with purchasing a vehicle
- Wages for a driver in appropriate locations
- Rental car for shorter trips
- Taxis/public transportation passes in developed locations
We support all the above with budgets and recommendations based on research.
The AIRINC Furniture Calculator delivers allowances for assignees who must furnish their own homes on assignment. Companies can receive a single report or a batch report for all locations in their program.
- Reduce administrative effort
- Ensure consistency
- Tailor your calculation
- Provide assignee flexibility