New beginnings are an exciting and stressful time. Fortunately, for nurse practitioners at such junctures, relocating for a job, employers often help mitigate this stress by providing financial assistance with moving expenses. This moving allowance and the terms of its receipt will be outlined in your employment agreement. Before signing on the dotted line, ask yourself these questions about your relocation package.
1. Will the offer cover my moving expenses?
Congratulations! You’ve received a nurse practitioner job offer. Now, what are the terms? As you evaluate your employment agreement, don’t neglect the terms of relocation. Moving for a nurse practitioner job’s going to cost you. Before you begin negotiating your employment agreement, get out your calculator and get a rough idea as to how much the transition will cost you. Consider negotiating for a more favorable relocation package if you will need more cash to cover your move. Companies are more open to negotiating terms like relocation than salary because these are one-time expenses. Having an estimate of your moving expenses ready will help make your case.
2. How will my relocation stipend be paid?
There are a few different ways companies cover the cost of relocation for nurse practitioners. These include:
- Lump Sum – The company give you a set dollar amount to put toward relocation expenses. You may spend this money any way you see fit.
- Reimbursement – The company will reimburse you up to a set dollar amount for expenses related to relocating for your job. You will need to submit receipts for any expenses incurred to the company for approval before you are reimbursed.
- Third-Party – Some companies outsource the handling of employee relocation to another vendor. You will work with a representative from this third-party vendor when it comes to relocation logistics and expenses.
- Direct Billing – Your new employer will work directly with movers etc. responsible for handling your relocation.
Most commonly, nurse practitioners will relocate with a reimbursement arrangement for expenses. So, don’t forget to save your receipts and check to see if your company has a list of approved kinds of expenses you can reference.
3. How can I maximize my relocation dollars?
Moving can be costly, so it’s important to get the most bang for your buck to help your relocation stipend go as far as possible. One way to do this is to take advantage of tax law. Federal law allows you to deduct moving expenses related to a job transfer or accepting a position with a new employer. Before claiming these deductions, look closely at the legal parameters. Expenses such as transporting your belongings from one home to another as well as storage unit rental may be covered. Other costs, such as travel to look for a new home may not be deductible. The bottom-line? If you’re accepting a new nurse practitioner position that’s prompting you to move, let your CPA know so you can take advantage of any tax incentives.
4. What happens if things don’t work out?
Relocating for a nurse practitioner position is a big commitment. Even more so in that if the job doesn’t work out and you break the terms of your contract by leaving prematurely, or are terminated, you’ll likely need to repay the financial incentives you accepted upon signing your employment agreement such as a sign-on bonus or relocation stipend. Keep this in mind if you’re thinking of jumping ship.
What questions do you have about relocating for your nurse practitioner job?
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