So you’ve been working from home since the onset of COVID-19, and maybe you are ready for a change. Perhaps you need more space, less distractions. Maybe your pets are driving you crazy day-in and day-out. Maybe you need to be closer to family in order to take advantage of that free babysitting. Or maybe you just want a better view from your home office. After all, if you are spending an extra 40 hours a week in any place, you want to make the most of it right? Of course you do, and you probably deserve that view anyway, right?!
But not so fast! Maybe it’s not quite so simple. Before you start making those moving plans read on for 4 factors you should consider. Once you’ve got the full picture on how this move will impact you, give us a call at 615-867-3020 and let us help you get your home SOLD quickly for top dollar.
Will my company let me work from somewhere else?
Many companies have moved to more flexible work from home policies due to the pandemic, but that doesn’t always mean you can work from just anywhere. If you’re staying here in the greater Nashville area, you are likely to be fine, but many companies will incur greater tax burdens due to a change in location by their employees when moving out of state or country. Some companies may even be working on a plan to change their business model to smaller satellite offices or teams and reopen post-pandemic. So be sure to check with HR and get the all clear before taking off to Hawaii or Fiji to enjoy the sand and surf while you work!
Will moving affect my compensation?
Many employers weight their compensation based on economic drivers related to location. Think about the cost of living in NYC versus here in Nashville. And often the pay scale is related to that location. So say you’ve been working for a company here in Middle Tennessee and just found out they will be shutting down the offices and allowing you to work remotely going forward. That doesn’t necessarily mean you can move out to East Tennessee, where the cost of living is considerably less, and still be paid the same. Labor may also be cheaper there, so you may experience a compensation change. But if you have a nationally competitive job and want to move across the country there could also be little to no difference in your pay, because your employer may have to compete with other similar companies to keep you. So again, check with your Human Resources counterparts and get a clear picture of how a move might affect you.
How will relocating impact my benefits?
How will moving affect my taxes?
This one may be a better question for your accountant than your company’s Human Resources representative, who may not understand the tax laws of other states to the full extent. State income taxes vary widely across the United States. Moving to another country altogether? Likely even more so. In most southern states, including here in Tennessee, there is no income tax, but move just North to our bordering states of Kentucky and Virginia and the state income taxes are suddenly 5% or more. Add to that the slight complication that you are now living in a state with income tax, but employed in a state without an income tax and the picture becomes even more murky. Remember your social studies teacher talking about Double Taxation between different countries, or the treaties preventing it? Maybe not… For many countries this is a relatively new idea. Even here in the U.S. among our own states reciprocal agreements are not yet a given. Only 17 states have reciprocal agreements with other states allowing non-residents to not pay taxes. So talk to your payroll department or accountant and know exactly what you are getting into.