Worldwide ERC Webinar Recap
NEI representatives attended an important, non-partisan Worldwide ERC webinar held on 20 November 2024.
If you were unable to join this insightful presentation, NEI has prepared a condensed recap of the three primary areas discussed that impact global mobility and talent management in the near future. Topics focused on three key areas: Visa & Immigration, Tax, and the U.S. Real Estate Market.
1. Visa & Immigration: Policy Shifts and Corporate Adaptation
Immigration policy remains a critical focus for businesses as the U.S. political landscape evolves. Past challenges, such as "Buy American, Hire American" (BAHA), increased visa scrutiny, and travel bans, created significant hurdles for global mobility. Programs like H-1B and H4 visas faced stricter requirements, while ongoing litigation over DACA added uncertainty.
Looking ahead:
- New administration policies could bring further restrictions, particularly in legal immigration.
- Executive Orders and Internal Orders—swift government policy changes—could occur with little to no notice.
- On or after 20 January 2025, hundreds of policies/Biden administration executive orders may be pulled back immediately along with reinstatement of travel bans.
- Enhanced immigration enforcement, slower processing times, potential staffing cuts, and the possible H-1B Modernization Rule focusing on skill-based eligibility may require companies to redefine their strategies.
Staying informed and acting decisively are imperative for businesses that may be impacted in order to ensure workforce stability. Companies should prioritize:
- Compliance: Maintain accurate employee records and prepare for increased site visits and documentation requests.
- Contingency Planning: Develop strategies for work authorization gaps or denied visa applications, including relocation alternatives.
- Proactive Filing: Submit visa applications early and utilize premium processing to mitigate delays.
- Employee Engagement: Support employees through clear travel policies, updates, and resources to address uncertainties.
2. Tax: Anticipated Legislative Changes and Corporate Readiness
Tax reform remains a critical area, with potential changes impacting corporate policies on relocation and mobility.
- Historical Context: The Tax Cuts and Jobs Act (TCJA) eliminated deductions for employee moving expenses, increasing costs for businesses covering relocation. Without intervention, these provisions will expire in 2025, allowing certain relocation expenses, such as final move and household goods shipments, to once again become tax-exempt.
- New Policy Directions: Trump’s proposals include eliminating double taxation on overseas Americans and making car loan interest deductible for U.S.-made vehicles. However, legislative progress depends on navigating budget deficits and achieving bipartisan support.
- Corporate Strategy: Businesses should monitor developments closely, involve payroll teams early, and model outcomes for potential tax policy shifts. Flexibility in adapting policies, as seen after the TCJA, will be vital.
3. Real Estate: Market Dynamics and Regulatory Changes
Election outcomes also influence the real estate landscape, impacting corporate relocations and employee housing.
- Market Trends: Mortgage rates are holding between 6 percent and 7 percent and may remain at this level next year. With stable home prices, slowing price growth (and even declines in some areas), and a continued tight inventory market, affordability will remain a challenge for buyers.
- Regulatory Shifts: A new administration may influence buyer broker compensation rules and bring changes to the Consumer Financial Protection Bureau (CFPB), potentially easing industry compliance burdens.
- Company Considerations: Evaluate housing allowances and relocation packages as market conditions fluctuate. Stay updated on anti-money laundering rules that could affect transaction reporting.
Preparing for the Next 60 Days
To navigate upcoming policy shifts, global mobility and talent management professionals should focus on strategic action and employee support:
- Cross-Functional Awareness: Coordinate with HR, legal, and finance to address questions quickly and manage interrelated impacts of tax, immigration, and real estate changes. Establish clear communication channels for updates.
- Employee Support: Reassure employees through town halls, email updates, and robust travel policies. Clear guidance on potential visa delays or work authorization issues fosters confidence and preparedness.
- Proactive Policy Review: Submit immigration filings promptly using premium processing where possible. Prepare for increased site visits and documentation requirements.
- Disruption Contingency Plans: Develop strategies to address work authorization gaps or relocations—even in countries like Canada where policies may also tighten.
- Long-Term Adaptability: Regularly update corporate policies in response to legislative changes. Monitor key developments in tax, immigration, and real estate to stay ahead of potential impacts.
Proactive Planning + Informed Decision Making
By acting decisively and fostering collaboration, companies can minimize disruption and support employees through a period of change. Of course, NEI will be here as your partner to help you proactively plan and make informed decisions. We will continue to keep you informed of the latest developments.
If you have questions about the information presented or would like to discuss these or any other concerns proactively, please contact your NEI Client Relations Manager or Sales Representative at 800.533.7353 any time.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
Worldwide ERC Webinar Recap
NEI representatives attended an important, non-partisan Worldwide ERC webinar held on 20 November 2024.
If you were unable to join this insightful presentation, NEI has prepared a condensed recap of the three primary areas discussed that impact global mobility and talent management in the near future. Topics focused on three key areas: Visa & Immigration, Tax, and the U.S. Real Estate Market.
1. Visa & Immigration: Policy Shifts and Corporate Adaptation
Immigration policy remains a critical focus for businesses as the U.S. political landscape evolves. Past challenges, such as "Buy American, Hire American" (BAHA), increased visa scrutiny, and travel bans, created significant hurdles for global mobility. Programs like H-1B and H4 visas faced stricter requirements, while ongoing litigation over DACA added uncertainty.
Looking ahead:
- New administration policies could bring further restrictions, particularly in legal immigration.
- Executive Orders and Internal Orders—swift government policy changes—could occur with little to no notice.
- On or after 20 January 2025, hundreds of policies/Biden administration executive orders may be pulled back immediately along with reinstatement of travel bans.
- Enhanced immigration enforcement, slower processing times, potential staffing cuts, and the possible H-1B Modernization Rule focusing on skill-based eligibility may require companies to redefine their strategies.
Staying informed and acting decisively are imperative for businesses that may be impacted in order to ensure workforce stability. Companies should prioritize:
- Compliance: Maintain accurate employee records and prepare for increased site visits and documentation requests.
- Contingency Planning: Develop strategies for work authorization gaps or denied visa applications, including relocation alternatives.
- Proactive Filing: Submit visa applications early and utilize premium processing to mitigate delays.
- Employee Engagement: Support employees through clear travel policies, updates, and resources to address uncertainties.
2. Tax: Anticipated Legislative Changes and Corporate Readiness
Tax reform remains a critical area, with potential changes impacting corporate policies on relocation and mobility.
- Historical Context: The Tax Cuts and Jobs Act (TCJA) eliminated deductions for employee moving expenses, increasing costs for businesses covering relocation. Without intervention, these provisions will expire in 2025, allowing certain relocation expenses, such as final move and household goods shipments, to once again become tax-exempt.
- New Policy Directions: Trump’s proposals include eliminating double taxation on overseas Americans and making car loan interest deductible for U.S.-made vehicles. However, legislative progress depends on navigating budget deficits and achieving bipartisan support.
- Corporate Strategy: Businesses should monitor developments closely, involve payroll teams early, and model outcomes for potential tax policy shifts. Flexibility in adapting policies, as seen after the TCJA, will be vital.
3. Real Estate: Market Dynamics and Regulatory Changes
Election outcomes also influence the real estate landscape, impacting corporate relocations and employee housing.
- Market Trends: Mortgage rates are holding between 6 percent and 7 percent and may remain at this level next year. With stable home prices, slowing price growth (and even declines in some areas), and a continued tight inventory market, affordability will remain a challenge for buyers.
- Regulatory Shifts: A new administration may influence buyer broker compensation rules and bring changes to the Consumer Financial Protection Bureau (CFPB), potentially easing industry compliance burdens.
- Company Considerations: Evaluate housing allowances and relocation packages as market conditions fluctuate. Stay updated on anti-money laundering rules that could affect transaction reporting.
Preparing for the Next 60 Days
To navigate upcoming policy shifts, global mobility and talent management professionals should focus on strategic action and employee support:
- Cross-Functional Awareness: Coordinate with HR, legal, and finance to address questions quickly and manage interrelated impacts of tax, immigration, and real estate changes. Establish clear communication channels for updates.
- Employee Support: Reassure employees through town halls, email updates, and robust travel policies. Clear guidance on potential visa delays or work authorization issues fosters confidence and preparedness.
- Proactive Policy Review: Submit immigration filings promptly using premium processing where possible. Prepare for increased site visits and documentation requirements.
- Disruption Contingency Plans: Develop strategies to address work authorization gaps or relocations—even in countries like Canada where policies may also tighten.
- Long-Term Adaptability: Regularly update corporate policies in response to legislative changes. Monitor key developments in tax, immigration, and real estate to stay ahead of potential impacts.
Proactive Planning + Informed Decision Making
By acting decisively and fostering collaboration, companies can minimize disruption and support employees through a period of change. Of course, NEI will be here as your partner to help you proactively plan and make informed decisions. We will continue to keep you informed of the latest developments.
If you have questions about the information presented or would like to discuss these or any other concerns proactively, please contact your NEI Client Relations Manager or Sales Representative at 800.533.7353 any time.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
