Instant Card For Relocation Lump Sum Payments
Lump Sum Relocation Payments With InstantCard
A lump sum relocation package is the easiest and most straightforward way for employers to pay for employees’ moving expenses. With ExpensePort™’s Instant Card, employers can provide a lump sum payment on a virtual VISA card for use online or in person worldwide. This gives employees instant access to funds. Instant Card is preloaded and has controlling start and stop dates to stay aligned with relocation policy and support tax compliance.
What Is a Lump Sum Relocation Package?
A lump sum relocation package means the employer gives an employee a set amount of money to help with costs associated with their move or assignment. Rather than managing vendors or handling reimbursements, the company pays the full amount at once. The employee can then use the money on the moving expenses that are the most important to them.
A lump sum relocation package can be offered on its own to cover the majority of employees’ moving costs. A lump sum allowance can also be part of a larger managed relocation program that covers moving household goods, temporary housing, or travel. In that case, the lump sum relocation allowance is meant for miscellaneous moving costs.
A good lump sum relocation package benefits both employers and employees. With a clear policy, it is one of the most efficient ways to manage employee moves.
Benefits of Lump Sum Relocation Packages for Employers
- Predictable budgeting
A lump sum relocation package helps companies more easily predict relocation costs. The fixed allowance replaces variable reimbursements and matches company policy.
- Reduced administrative burden
There is no need to track receipts or deal with complicated reimbursements. A lump sum payment eliminates manual expense reviews and saves time on relocation accounting.
- Lower fraud and misuse risk with Instant Card
With a controlled lump sum payment method like Instant Card, a lump sum relocation package becomes more transparent and secure.
- Ability to issue payments prior to the employee being on payroll
Even when a candidate or new hire is not yet on payroll, or if an employee is between payrolls, an Instant Card lump sum relocation allowance can be issued.
Benefits of Lump Sum Relocation Packages for Employees
- Immediate access to relocation allowances
Employees do not need to use their own money or wait to be reimbursed.
- Freedom to choose vendors
A lump sum relocation package allows employees to choose their preferred vendors and spend according to their priorities.
- Less paperwork
No need to track receipts or submit reimbursement requests.
- Easy to understand
A clear lump sum relocation policy is easy for employees to use.
When done right with Instant Card, a lump sum relocation package is a win for everyone. Employees feel supported, and employers can easily predict their relocation budgets.
Instant Card: A Better Way to Deliver Lump Sum Relocation Payments
A lump sum relocation package is simple in theory. However, traditional lump sum relocation payments delivered through payroll or direct deposit can cause problems. Funds may be co-mingled and difficult to manage or taxed incorrectly. Employees may spend outside policy, and employers may lose visibility.
ExpensePort™’s Instant Card addresses these problems by changing how lump-sum relocation allowances are delivered and managed.
How Instant Card Works
When a simple lump sum relocation package is the best choice, ExpensePort™ handles the whole process:
1. Load the lump sum amount.
Based on your lump sum relocation policy, ExpensePort™ loads the approved lump sum relocation allowance onto an instant‑issue, prepaid, VISA-enabled virtual card or a physical VISA Expense Card.
2. Instantly deliver the card directly to the employee.
An Instant Card can be delivered immediately via a smartphone. The employee gets their card instantly, so there is no waiting for payroll cycles or reimbursement processing. The option to mail a physical card is also available.
3. The employee can immediately use the funds.
The prepaid relocation card can be used anywhere VISA cards are accepted, giving employees complete flexibility.
4. ExpensePort™ handles relocation expense reporting, tax, and compliance for you.
ExpensePort™ handles all tax and policy requirements for the lump sum relocation payment. It is one integrated relocation expense management system to lower your organization’s risk and reduce administrative work.
- Real‑time visibility and control for employers, no client access
- Reduced fraud risk
- No reimbursement headaches
- No need for employees to use personal funds
- Seamless alignment with your lump sum relocation policy
Instant Card removes the usual drawbacks of lump sum relocation and keeps it simple.
Use Case Scenarios for Instant Card Lump Sum Relocation Payments
Here is how employers are using Instant Card lump sum relocation payments:
Miscellaneous Relocation Expense Allowances
Companies provide a lump sum relocation allowance for extra costs not covered by managed relocation services.
Intern and Early‑Career Employee Moving
Interns and early-career hires need access to money to enable them to move for work. A lump sum relocation allowance with Instant Card provides them with the support they need to move without using their personal credit.
Travel & Entertainment Allowances
In addition to relocation, Instant Card can manage travel and entertainment allowances for executives and employees with the same level of visibility and control.
Per Diem Payment Management
For employees who are traveling, Instant Card makes it easier to distribute and track per diem payments.
Candidate Travel For Interviews
Instant Card streamlines the hiring process by allowing employers to provide a controlled lump sum relocation allowance for interview-related travel, without the added effort of reimbursements.
Calculating Lump Sum Relocation Packages
These are the factors employers need to consider when calculating a lump sum relocation package:
1. Assess Role, Level & Move Type
Evaluate the role’s importance and the employee’s seniority. Is the lump sum relocation allowance competitive enough to attract or retain those employees?
2. Consider the Move’s Unique Expenses
Think about the distance of the move, household size, and whether the relocation is temporary or permanent. Also, remember to factor in cost-of-living data and average relocation expenses.
3. Define the Relocation Services Covered By the Lump Sum
Be clear about what the lump sum relocation package covers, including moving household goods, transportation, real estate expenses, and other miscellaneous costs. Also, consider tax implications and whether to gross up the payment.
FAQs About Lump Sum Relocation Packages
Traditional managed relocation programs require vendor selection, coordination, and billing. A lump-sum relocation allowance eliminates the need for vendor management by giving employees a set amount upfront to spend on moving expenses of their choice.
Yes, a lump sum relocation payment may count as taxable income. Some employers choose to tax assist/gross-up the allowance so employees get the full intended value. ExpensePort™ can automatically manage all relocation tax compliance reporting when funds are delivered through Instant Card.
ExpensePort™ delivers the lump sum relocation payment via a virtual Instant Card or a VISA Expense Card, so employees have immediate access to funds.