Bright Lights, Big City, Bigger Taxes!

    May 11, 2021 @ 05:48 PM / by Jade Chang

    USA, NYC - 4- ZR-865980-edited

    In August 2019, my partner received a job offer he couldn’t pass up, so I asked to relocate from Boston to New York City. Fortunately, AIRINC accepted my request to become a fully remote worker.

    Higher cost of goods and housing

    I went to college in Boston and I established a memorable post-college life there, so leaving was bittersweet. However, the excitement of a new place was overwhelming. Prior to moving, I was acutely aware of the higher costs of housing and goods and services since NYC is one of the most expensive places in the United States!

    The relocation process was flawless. My partner’s company provided moving services (lifesaving!), a relator to help find housing in the city (surprisingly helpful), and a cash lump sum to cover temporary housing and any miscellaneous relocation fees. My stuff magically disappeared from Boston and reappeared in the new apartment in NYC (fantastic)!

    Impact to net incomes - don't be blind-sided

    The biggest shock was the impact on our net incomes. We knew NY had higher taxes, but it was difficult to estimate on our own. Luckily, working for AIRINC allowed me to use AIRINC’s Domestic Transfer Reports on the Salary Evaluation Tool and get a clear side-by-side comparison of taxes, goods and services, and housing cost. Having a clear and concise breakdown of the new tax amounts compared to our original location was very valuable. Anyone relocating would benefit from understanding the full impact of their move.

    Contact us to learn more about assessing pay - either domestically or internationally. You can also register for our upcoming product demonstration.

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    About AIRINC

    Listen | Partner | Deliver.  For over 60 years, AIRINC has helped clients with the right data, cutting-edge technology, and thought-leading advice needed to effectively deploy talent worldwide. Our industry expertise, solutions, and service enable us to effectively partner with clients to navigate the complexity of today’s global mobility programs. As the market continues to evolve, AIRINC seeks innovative ways to help clients address new workforce globalization challenges, including mobility program assessment metrics and cross-border talent mobility strategy. Our approach is designed with your success in mind. With an understanding of your goals and objectives, we ensure you achieve them. Headquartered in Cambridge, MA, USA, AIRINC has full-service offices in Brussels, London, and Hong Kong. Learn more by clicking here.

    Topics: Employee Compensation, Salary Evaluation Tool, Domestic Mobility Programs, Domestic Moves, Domestic Lump Sum

    Jade Chang

    Written by Jade Chang

    Jade joined AIRINC’s Client Engagement group in 2015. Since that time, she has specialized in servicing clients throughout the Northeast U.S. Jade primarily services large managed programs focused within the Pharmaceutical and Banking industries. Also a member of AIRINC’s Advisory Services team, she has worked on a variety of projects across a multitude of industries. Jade’s Advisory Services focus is on benchmarking. Jade received her B.A. in Economics from Boston University and is based in New York, NY.