CRP Relocation Policy 2

Question 1

What is the primary purpose of a relocation repayment agreement?

Accepted Answer

To recover relocation costs if the employee leaves the company within a defined period

Answer

A repayment agreement lets the employer recover some or all relocation spend if the employee resigns or is terminated for cause within a set period, commonly 12 months.

Question 2

In a tiered relocation policy, what generally determines which tier an employee receives?

Accepted Answer

Employee level, move type, or business need such as new hire versus transfer

Answer

Tiers typically align benefits to job level or move type, such as executive, transferee, new hire, or intern.

Question 3

Which approach gives an employee a fixed sum to manage their own move with no itemized reimbursement?

Accepted Answer

Lump-sum program

Answer

A lump sum gives a set amount the employee uses at their discretion, which reduces administration but shifts cost control and risk to the employee.

Question 4

Under a core/flex relocation policy, what are 'core' benefits?

Accepted Answer

Essential benefits provided to all relocating employees

Answer

Core benefits are the baseline services every mover receives, while flex lets employees choose from additional options within an allowance.

Question 5

Why do employers often offer a tax gross-up on taxable relocation benefits?

Accepted Answer

To offset the income tax the employee owes on the reimbursed benefits

Answer

A gross-up adds an amount so the employee is held harmless for taxes on taxable moving benefits.

CRP - Certified Relocation Professional Practice Test

CRP - Certified Relocation Professional Practice Test

CRP Relocation Policy 2