Relocating an Employee Within the United States

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Now it's your turn to solve a real-life problem!

Problem Statement

You work for U.S. Electro-Mechanical Products in Akron, Ohio where you supervise a group of engineers, one of whom is being transferred to the company's facility in Dallas, Texas. The engineer, Joanne, earns $120,000 a year, is married with two children, owns a 2,400 square foot home, and owns two cars worth $33,500 that are driven 30,000 miles each year. She wants to know what the company will contribute to relocation costs.

Specifically, Joanne wants to know:

1. Does she qualify for the company buy-down program?
2. Does she qualify for a relocation bonus because of the difference in cost of living?

Company policy is as follows:

• An employee is eligible for a buy down if the cost of housing in the new location is $20,000 or more than in the current base city location.
• An employee is eligible for a relocation bonus if the cost of living, not including housing, is 10% higher in the new location than in the current base city location.