# Australian thinking about working in US



## saml26 (Apr 1, 2009)

Hi everybody,

I currently work for an Aust IT company, based in Brisbane. We have an office / subsidiary in the US and are looking at expanding the team.

My boss has approached me and asked if I would be willing to move to the US for 2 years and they will sponsor me to work there.

I have lots of questions, but a few for now.....

- Any Aussies out there who have made this move?
- What sort of package is acceptable in the IT industry, as a Manager
- I'm fairly open to chose where I live, preferably somewhere central and have been told that Austin, Texas is a nice place to raise a family (have wife and two small children)
- What sort of re-location package should I push for?
- etc etc

As you can see, I don't have that much information yet, as we have just started discussing this and unless it is all in my favour I won't commit in making such a move.

So experiences, suggestions and any feedback would be great.

Thanks


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## Bevdeforges (Nov 16, 2007)

The main thing about taking a transfer to the US is that virtually no "social benefits" are legally mandatory in the US - for managers or anyone else. Though, check to see what your company's policy is for health insurance, retirement contributions, etc. in the US. They are supposed to maintain some level of equity among the employees at a set level. 

Assuming you'll be returning to Oz after your 2 years are up, you probably will want to maintain your standing in the benefits plans back home - at least as far as retirement is concerned. Health insurance in the US can come as a big shock to those used to a national health system - ask lots of questions in this area. And make sure you get tax assistance - usually the company will spring for someone to do your US taxes while you're there. Often they'll throw in "tax equalization" which compensates you for the extra tax incurred by your expat benefits (i.e. housing assistance, a company car, any other paid extras).

Austin is a great location by all accounts. It's a university town, which means there is lots going on and plenty of good facilities - like schools, restaurants and entertainment of all sorts.
Cheers,
Bev


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## saml26 (Apr 1, 2009)

What about $$$$$ what sort of packages are acceptable? I know that this is all relative to the cost of living and where you go, but what is good and what is bad? Can anyone comment?

I heard of a Microsoft paying upto $60k USD in relocation costs for an employee, that is just crazy.


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## twostep (Apr 3, 2008)

60k is not unreasonable if it is a top candidate. By the time you add household goods shipping, a couple of weeks of temporary housing, tickets for cat/dog/wife/kids ... Depending on the location it adds up in a hurry. 

I am guessing - this is a flat relo package not a move? Considering that it is taxed at around 40% and probably tied into a prorated repayment contract - I do not understand your exitement. 

Out of my world - sign-on for bankers/accountants with compensation 100-150k and a move within the US runs between 30-100k right now. Packages were considerably more complex prior to 2008. Now it is pretty cut and dry sign-on.


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## Bevdeforges (Nov 16, 2007)

saml26 said:


> What about $$$$$ what sort of packages are acceptable? I know that this is all relative to the cost of living and where you go, but what is good and what is bad? Can anyone comment?
> 
> I heard of a Microsoft paying upto $60k USD in relocation costs for an employee, that is just crazy.


Relocation costs a fortune, especially if you have benefits like tax equalization and all included. You get taxed on the relocation benefits, so they have to add $$$ to the package price to pay those taxes and - wait for it - then you are taxed on the extra taxes if the company is paying them.

If they are simply throwing in a set amount of money for your relocation (and making you do the work yourself), you probably want to check what items of relocation are tax deductible in estimating your costs. Take a look at IRS publication 521 here http://www.irs.gov/pub/irs-pdf/p521.pdf for details. 

Basically, if they are giving you a fixed amount and letting you make all the arrangements, you want to use up as much of the amount you're given on deductible moving expenses as possible - otherwise you wind up getting taxed on the balance.
Cheers,
Bev


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## Kiwi1234 (Mar 26, 2009)

We moved to the US from New Zealand over 2 yrs ago through my husbands work. They opened a US office and used a L1 Visa to trasfer him. The package that he negiotiated was in accordance with usual global company transfers. His company actually consulted with a specialist company that deals with transferring staff overseas.

We ensured that he was getting the same benefits as if we were still living and working in NZ. He was offered the same NZ salary but in US dollars, so in effect it doubled. That may seem like a big jump, but cost of living here is not as cheap as you think. They pay all his US taxes to ensure "tax equalization", they pay for our health insurance, which is not cheap (approx $500 per month just for the two of us), they provided a company car and pay for his gas. We looked at bringing our furnishings over here but in the end the cost to ship it was not worth it and we didnt know how long we would actually be staying beyond the 2 yrs. So he negituated a $10,000 furnishing package to enable us to buy the general household items (bed, sofas, TV, kitchen items etc etc), we ended up only using $6,000 by shopping around. They also contribute $1200 towards rent, anything beyond that is our cost.

This all sounds like a lot but I myself had to take a substaintial pay cut, and buy myself a car. We also have a home back in NZ which we rent out and claim depreciation, and his company helps the accounts on that. All in all we have worked it out that we are about the same financially, which is where it should be (they dont tranfser you so you can make loads of $$$$!). But the experience of living here as certainly made the effort worthwhile and we have enjoyed every minute of it.

I recommend your company liaising with a company that specialises in intercompany transfers overseas, and dont settle for anything less that what you get now!


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## JohnSoCal (Sep 2, 2007)

The package that kiwi1234 described is pretty reasonable. There are basically 2 factors involved in determining what salary to expect. First is what sector of the IT industry are you in. What do you manage? Second factor is the location. I was in the IT industry for several years until I retired a few years ago. A friend of mine is a software engineering manager and makes $200,000 /year plus another $35,000-50,000 in bonuses. He works for the largest high tech company in San Diego California. His company provides extensive benefits including free medical insurance for the employee plus family. High tech companies generally have good benefit packages. I have other friends making similar salaries or higher in Silicon Valley. Would expect Austin TX to have lower salaries but the cost of living is lower.


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## saml26 (Apr 1, 2009)

Thanks guys. This is still going on, and a package should be negotiated soon before I make my final decision.

I'll let you know soon what is happening and ask for more advice.


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