Mobility Strategy - Market Practices

U.S. Domestic - Short-Term Assignment

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1 © 2022 Graebel Companies, Inc. All Rights Reserved. This document contains CONFIDENTIAL information. Reproduction and distribution of this document in any manner or for any purpose is prohibited without the express written permission of Graebel Companies, Inc. U.S. Domestic Short-Term Assignment (STA) – Market Practices Provision Market Practices Definition > Most companies define short-term assignments as lasting 90 to 364 days (less than one year). > Assignments of less than 90 days are typically defined as Extended Business Travel (EBT) and assignments exceeding one year in length are typically considered to be long-term. o Assignments exceeding one year are considered indefinite and not temporary, which impacts the taxability of assignment expenses. > Short-term assignments are most often unaccompanied; the family does not join the employee on assignment. Eligibility > Current Employees > Experienced new hires > Short-term assignments are most often utilized for project-based work or employee development purposes. Main/Primary Residence > No assistance is provided with either the disposition or rental of the main/primary residence. > To ensure favorable tax treatment of assignment expenses, the employee should maintain his her main/primary residence during the assignment. Per Diem > Paid monthly to cover food, public transportation, laundry, etc. > Pro-rated for days in the assignment location; days recorded by employee. > Determined for each city using U.S. General Services Administration (GSA) rates. > Any per diem payments exceeding the GSA rates are considered taxable income. Temporary Housing > Furnished, one-bedroom apartment (parking included if no available public transportation). > Depending on the length of the assignment, some companies will include one day of housing search assistance. Travel > Round trip, coach class (unless company travel rules vary by level) to and from the assignment location. > Employees choosing to drive are reimbursed for the standard IRS mileage rate but not reimbursed for any expenses en route. > For locations without available public transportation, reimbursed costs include car shipment OR rental car. Excess Baggage > Employees may be reimbursed up to $500 USD for excess baggage, given no other household goods or personal effect shipment support is provided.

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