The Ins and Outs of an Extended Business Stay

When an employee is asked to take an extended stay for business purposes it can be a difficult change. They must to to a fresh environment, completey foreign to them. On the bright side, the vast majority of companies happen to pay to give people the ability to visit with their families on the average weekend. There are also more options than ever before when it comes to finding just the right lodging. No longer do employees have to settle for bland, unfurnished corporate lodging now that stylish apartments and homes are now being provided.

Even though it might sound illogical, this strategy really does work to save people money. Employers always have the option of taking out a lease in order to pay for a small apartment and if this is not possible, there are plenty of companies who now specialize in providing affordable and comfortable corporate housing. With some even arranging holiday parties, and other events to decrease that feeling of despair and loneliness that usually goes hand in hand with long stays away from your home.

One thing that both employers and employees should be aware of is that they will be able to write off these costs as a business expense, but only as long as the stay is for a year or less. Anything longer, and you are no longer in temporary territory, my friend. These costs include lodging, meals and transportation and so forth. In order to qualify for these deductions, they will have to be classified as ‘ordinary or necessary.I strongly advise that you call your accountant or business advisor to make sure that you have all the proper write-offs.

If a company finds that they will be requesting employees to take these trips often, it is a good idea to tailor each stay to the individual instead do trying to come up with a ‘one size fits all’ approach. So, if a certain employee will need to visit home more often, a company will want to adjust for that. Companies should do their best not to be too accommodating as this would be expensive over time, but to also be sensitive to the circumstances of each individual employee involved in these trips. It is best to match employee benefits with their overall contribution to the company.

Ultimately, a company should consider the following three considerations when attempting to determine employee benefits for these extended business stays: –The basic cost of the employee relocation itself –The costs of providing the employee enough incentive for the move –Any costs required in order to keep the employee occupied on work and not home These costs, especially the third one, can be difficult to quantify which makes planning for these trips difficult. It is important that these extended stays for business purposes are not treated as just long business trips. There are a lot of different things to consider and plan for if the move is going to be a success.

This article has been provided by Lawrence Tyrone Reaves, who is a Richmond corporate housing consultant at Dabneyproperties.com, a temporary housing provider for the Richmond area and beyond.