Microsoft Relocation Lump Sum Doubt
Hi, I recently got an offer to join Microsoft in Redmond. They have offered me a lump sum relocation amount of 23,500$. The offer letter mentions following "A relocation lump sum allowance of USD$23500 (grossed up for taxes and reported in your W-2 at year end) will be paid via payroll within the first month after your start/transfer date. " So my question is does it mean I will be getting 23.5K$ in hand? The statement is little confusing because it says the amount will be reported in my W-2. Thank you.
Yup u will be getting 23500 in hand
Thank you much for prompt reply. This helps :)
Yes you get cash in hand. Taxes will be reported and paid by MS. Been through this and can confirm first hand What's you level and moving from?
I am moving from Phoenix AZ and level is 62 (SDE2). So just to confirm similar to what I have been offered (23.5K) you got exact same amount mentioned in your offer letter?
Grossed up means you will get $23.5K in hand (Microsoft will pay taxes)
How many days they took for you to know the start date after you submit everything for background verification and immigration clearance from the attorneys (no H1b for my case) .?
Well I haven't received my start date yet since I am on h1b. If I remove h1b out of equation then background verification and immigration clearance got completed within a week.
TC?
It depends if you opt for the cash or full relocation package. They normally give you 5k if opting for the cash option, so I suspect a full relocation from where you live costs 24k.
Thank you for you input. I didnt quite get '5K cash option' part. Is cash option different than limp Sum? I was given 2 options 1] Lump Sum 2] Full relocation. My recruiter mentioned that Full relocation MS will cover upto 35K$.
The 5k is for us cheap ass college grads. Ignore it. You are probably coming in at senior. My understanding is they’ll give you a card with 24k to spend. Will be added to total income in w-2 and taxed.