Welcome to Mobility Minute, a newsletter published every Friday byWorldwide ERC®for the benefit of members and the global mobility and relocation industry. Here’s a quick glimpse of what you’ll find in this week’s issue:
Worldwide ERC® Returns to Global With Regional Summits
The Challenges of Intra-State Group Mobility
Expiration of the U.S. COVID-19 Emergency – Tax Implications
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Worldwide ERC® Supports Global Mobility Professionals With Regional Summits
As part of the Worldwide ERC® commitment to meeting our members where they are and supporting global mobility professionals around the world, we are pleased to announce that registration is now open for our two regional summits taking place later this year. With relevant, localized programming and the chance to network with other relocation professionals in the area, these events provide a great opportunity for our members in the Asia-Pacific and Latin America regions to come together to catalyze the future of the global workforce.
The semiconductor industry is gearing up for a significant growth phase, particularly in the U.S., driven by the recent passage of the Chips and Science Act 52B. This new legislation is designed to revitalize semiconductor manufacturing in the U.S., primarily by allocating $52 billion to the development and expansion of U.S.-based chip factories, known as fabs. Prompted by this support, key players in the industry have already announced plans for building new facilities. Consequently, mobility specialists are poised to respond to the imminent demands this resurgence will create, both in the expansion of existing sites and the establishment of new ones.
Why is this important?
The imminent growth in the semiconductor industry, led by major corporations, will significantly spur corporate mobility and impact ancillary services and suppliers, necessitating widespread relocation services. These developments present vast challenges for businesses and service providers supporting the semiconductor industry, necessitating proactive planning from mobility specialists. To capitalize on this surge of corporate mobility opportunities, relocation professionals must shift their mindset from handling individual real estate transactions to understanding and supporting corporate business strategies and goals.
Expiration of the U.S. COVID-19 Emergency – Tax Implications
The national emergency declared in the United States for the COVID-19 pandemic, which expired on 11 May 2023, marked the end of several tax benefits permitted since March 2020 under IRC Section 139. These benefits rendered several categories of mobility-related expenses non-taxable during the national emergency. Now, with the conclusion of the emergency, these benefits, if provided to an employee, must be treated as taxable. However, in general terms, most expense reimbursements can still be categorized as business-related and remain deductible by the company, provided they are reasonable and have a business purpose.
Why is this important?
In a recent interview, David Oltman, chief compliance officer at Ineo, elaborates on the impacts of the expiration of the national emergency declared for the COVID-19 pandemic on the workforce mobility industry. IRC Section 139, a provision in the U.S. Internal Revenue Code, provides tax adjustments during national emergencies, allowing for certain benefits given by employers to be treated as non-taxable. It came into effect in March 2020 when then-President Donald Trump declared the pandemic a national emergency. Some items deemed non-taxable included hand sanitizers, childcare expenses, work-from-home setup costs, increased utility expenses, temporary living costs, commuting expenses, and unreimbursed health-related expenses. With the national emergency ending on 11 May 2023, these benefits must now be treated as taxable, prompting companies to reassess their programs to understand the transition's impact and necessary adjustments.
The U.S. Immigration and Customs Enforcement announced employers will have until 30 August to comply with Form I-9 requirements related to the physical inspection of identity and employment eligibility documents of any verifications conducted remotely under COVID-related flexibilities introduced in March 2020. — ICE Newsroom
The Consumer Financial Protection Bureau (CFBP) submitted a brief to the U.S. Supreme Court asking it to overturn a Fifth Circuit decision stating that CFBP’s funding structure is unconstitutional due to it violating the appropriations clause of the U.S. Constitution. — Housing Wire
The Federal Housing Finance Agency announced it is not moving forward with a change to the fees charged to certain borrowers based on their debt-to-income (DTI) ratio set to be implemented on 1 August 2023. — USA Today
The Roundup
The Appraisal Foundation’s Appraisal Standards Boardadopted the Fifth Exposure draft of the Uniform Standards of Professional Appraisal Practice (USPAP), with the new edition going into effect on 1 January 2024. As reported previously, the proposed USPAP draft published in April 2023 incorporates a range of changes, including updates to the ethics rules to address nondiscrimination and the removal of several existing definitions, including ‘relevant characteristics’ and ‘assignment elements.’
Worldwide ERC joined over 100 organizations in signing a letter to Senators Kevin Cramer (R-ND) and Mark Warner (D-VA) applauding their leadership on the SECURE Notarization Act in the chamber and calling for Senate action on the bill. The SECURE Notarization Act would provide interstate recognition of remote online notarization and introduce minimum standards for consumer protection and passed the House earlier this year with unanimous consent.
The U.S. General Services Administration’s Employee Relocation Resource Center (ERRC) released a fact sheet outlining requirements related to the shipment of lithium batteries as part of a Centralized House Goods Traffic Management Program (CHAMP) shipment associated with government-related relocations that are not excluded from Title 5 requirements or associated with the U.S. Department of State.
The U.S. Equal Employment Opportunity Commission released technical assistance related to employer use of artificial intelligence and considerations associated with Title VII requirements under the Civil Right Act of 1964.
Job Posting: Manager II, Global Mobility with Walmart
Looking for an open position or hiring for a mobility-related role? Visit Worldwide ERC’s Career Center to view or promote current openings.
The Breakroom
Determining the safest countries can be challenging due to outdated reputations and misinformation. To provide a data-driven perspective, the Institute of Economics and Peace (IEP) annually releases the Global Peace Index (GPI), a measure of global peacefulness. This year’s GPI indicates a slight decrease in the average peace level by 0.07% from the previous year.
The latest GPI ranks 163 nations on their peacefulness by examining 23 factors including incarceration rates, homicide rates, deaths from internal conflict, and perceptions of criminality. The scores from these indicators are averaged to form an overall composite—lower scores indicating safer nations.
Maintaining its status since the index’s creation in 2008, Iceland has once again been ranked as the most peaceful country globally. The lack of shared borders contributes to Iceland having one of the world’s lowest rates of international conflict and military expenditure. Moreover, its incarceration rate of 33 per 100,000 individuals is the lowest across Europe.
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