Since the COVID-19 pandemic led to widespread remote work, employees have gained new flexibility in where they choose to live. With no need to stay near an office, some workers are exploring opportunities to relocate—especially to areas with lower living costs. However, moving while working remotely isn’t a decision to take lightly. Before you pack up and hire a moving company, there are critical factors to review before relocating while working remotely.
Talk to Your Employer First
Before making any moving plans, check in with your employer. Remote work might seem like it eliminates location restrictions, but that’s not always the case. Many companies face tax implications when employees move to different states. Your employer must ensure that the correct taxes are withheld from your paycheck and determine whether they’ll face new state tax liabilities.
If your company plans to return to in-office work, your relocation may be temporary. In that case, consider renting a storage unit for belongings you can’t take with you. Companies like U-Haul or Public Storage offer flexible storage options that can ease the burden of short-term moves.
Check How Moving Could Impact Your Pay
Your paycheck may not remain the same after a move. Many employers adjust salaries based on the cost of living in different regions. If you relocate to an area where housing, groceries, and other expenses are lower, your salary might decrease accordingly. However, this adjustment depends on your role and its national competitiveness. Highly specialized positions may maintain consistent pay regardless of location.
Review Your Employee Benefits
Relocating while working remotely could also affect your employee benefits, especially health insurance. Since health coverage is regulated by state laws, you may need to switch plans if your current insurer doesn’t operate in your new state. Also, because your paycheck may change, matching contributions to your 401(k) or other retirement benefits could shift as well.
To stay informed about health coverage options in your new state, visit Healthcare.gov for state-by-state resources.
Understand Tax Implications
Moving across state lines can have tax consequences. Some states have no income tax (such as Florida, Texas, and Nevada), while others—like California or New York—have higher tax rates. You may need to file taxes in both your current and former states for the year of your move. Use resources like the IRS Moving Guide to better understand potential tax liabilities.
Ready to Relocate? Plan Your Move Thoughtfully
Relocating while working remotely can unlock new opportunities—but it requires careful planning. From taxes and salary adjustments to potential changes in benefits, each factor plays a crucial role in making your move a success. Take time to research, communicate with your employer, and explore your options before making the leap.
If your employer approves permanent remote work, moving to a more affordable area could be a smart lifestyle upgrade. Once you’ve decided, start planning your relocation carefully. Need professional moving services? Lee Moving & Storage, Inc. offers expert long-distance moving services to help you make a smooth transition.