The questions most commonly asked about HomeServices Relocation’s service fees reclassification
Why is HSR offering a new pricing option?
Over the years, commissions on HHG and other services have grown in
significance as basic service fees have decreased. Unfortunately, while fees
are clearly stated on client invoices, commissions are often imbedded in the
gross pass-through cost for the service, resulting in a lack of visibility for the
client of the amount paid to the RMC.
Additionally, most commissionable items are also taxable. Failing to break
out the commission piece needlessly increases the amount of tax assistance
incurred by the employer.
HomeServices Relocation’s (HSR’s) new option addresses both these issues by
eliminating commissions entirely and by disclosing them where it is not
practical to eliminate them.
What is the advantage of the new pricing option for my company?
Visibility to all RMC compensation. Lower tax assistance costs.
Is there a disadvantage for my company if we decide to use a traditional model?
No. HSR will still reflect all commissions earned as “RMC Move Management
Fee” so that the amounts can be properly classified as a fee and not grossed-up
for tax purposes.
Are there any service implications?
No. Regardless of fees or commissions, all clients enjoy top notch service
and attention.
If we select the new pricing option/model and later decide that it is not for us, can we transition to the traditional model?
Yes, although a new contract would need to be executed.
Are there any tax advantages for our company if we select the new pricing option?
Yes. Commission amounts which are not visible in the traditional model will
now be clearly displayed, allowing for such amounts to be classified as
services fees, saving the gross-up on these amounts.
Is this available today?
Yes.
Who do I contact for more information on this program?
Gary Conerly, CRP, GMS
Director, Client Advisement
garyconerly@homeservices.com
612.252.1007
HomeServices Relocations’ mobility policy management services are designed to help you spend time managing your business with confidence that your recruitment and retention goals are being supported by a professional and trusted relocation partner.
