The pandemic and the move to remote work has made it possible for many people to work from anywhere. If you’re no longer tied to an office and are considering moving to a less expensive city or closer to family, there are several financial considerations you should take into account before you relocate.
The impact on your salary. If you move to a city with a lower-cost-of-labor market, it’s possible that your salary could go down depending on how your company handles compensation. Check with your manager or HR to understand how they think about pay relative to geography.
Your organization's tax risk. .Even temporary work in a state can trigger tax liability for a company. Your boss and even HR may not be fully aware of this. Clarify whether the company is registered to do business in the location where you're planning on moving to, and what that means for the organization’s risk.
Your personal tax risk. Working remotely in your new home and traveling back to your old office could open you up to tax liability in two places. Be sure to fully understand the tax implications of your work arrangement before making a decision.
Photo Credit: Melinda Emerson