Mobility Programs: Navigating the Intersection of Tax and Policy - - PowerPoint PPT Presentation

▶
mobility programs navigating the intersection
SMART_READER_LITE
LIVE PREVIEW

Mobility Programs: Navigating the Intersection of Tax and Policy - - PowerPoint PPT Presentation

Oct 07, 2023 618 likes •702 views

Mobility Programs: Navigating the Intersection of Tax and Policy presented by Penny Reyes Bonhagen Sr. Manager, Global Mobility, Seagate Technology Discussion Points Seagates Global Mobility Program Relocation Buyer Value Option

slide-1
SLIDE 1

Mobility Programs: Navigating the Intersection

  • f Tax and Policy

presented by Penny Reyes Bonhagen

  • Sr. Manager, Global Mobility, Seagate Technology
slide-2
SLIDE 2

Seagate’s Global Mobility Program

  • Relocation
  • Buyer Value Option
  • Tax Gross-ups
  • Foreign Tax Credits/Tax Equalization

Discussion Points

slide-3
SLIDE 3

Metrics

  • 300+ moves globally in FY13
  • US Domestic moves
  • Homeowners: 58%
  • Renters: 42%

Policies

  • Regional relocation policies that reflect local practices
  • Local plus policies in specific markets
  • Lump Sum for US domestic relocation
  • Limited to interns and specific job levels
  • Homeowners are NOT eligible

Relocation

slide-4
SLIDE 4

Program Characteristics

  • Inventory
  • Homes have fallen out of escrow and placed into inventory
  • Company-owned property until eventually sold
  • Policy Parameters
  • List price limited to 105% of average of two (2) BMAs
  • May exclude homes with features that may adversely impact the ability to sell the home
  • Exclusion Clause required in listing agreement between employee and broker
  • Employee may not sign any outside offer

Buyer Value Option

slide-5
SLIDE 5

Relocation (one-way transferees) Benefits

  • US
  • Variable tax gross-up loosely based on marginal tax rates
  • Not intended to cover ALL taxes
  • Europe  no tax gross-up
  • Asia  no tax gross-up

Assignment Benefits (US-Based Employees)

  • Annual calculation of US gross-ups based on marginal rates and

available foreign tax credits

  • Gross-ups also occur throughout the year when domestic tax and

tax equalization payments are made

Tax Gross-ups

slide-6
SLIDE 6

Hypothetical Tax Withholdings (US-Based Assignees)

  • Initial hypothetical tax withholding calculated at beginning of

assignment

  • Individual hypothetical tax withholding updated annually or

whenever there is a significant tax event

Foreign Tax Credits

  • Long-term Assignees
  • FTC may carry-over for multiple years
  • Benefit of FTC must be greater than cost of administering TEQ and tax preparation
  • Short-term Assignees  FTC carry-over for one year

Tax Equalization