Global HR

1
Global HR Relocation Solutions
Relocation from Israel to the Bay Area, CA,
US Practical Perspective (SAMPLE)
2
Ideal Relocation Location

• One of the best relocation location in general
  and specifically for Israelis
• Quality of life, personal security, educated
  population
• Heavily Israeli populated area ? the Casa
  Alberta Syndrome
• Word of warning crisis tend to come when you do
  not expect them ? the repatriation syndrome

3
Agenda

• Taxation in Israel and in the US
• Insurance in Israel and in the US
• Net and Free Income
• Benefits in the US
• Immigration
• Preparation
• Banking and Credit History
• Housing
• Car and Driving
• Education

4
Taxation - Israel

• Center of Life test
• Residential Tests
• Double Tax Treaty
• Residency according to Tax Treaty Vs. according
  to Internal Law

5
Taxation Israel (Cont.)

• Center of Life considerations
• Keeping a residency in Israel (long-term rental)
• Purchasing a residency abroad
• Economic ties with Israel
• Social ties with Israel
• Integration with local the community
• Registration at Israeli institutes abroad
• Visits to Israel
• Working status with Israeli companies
• Active bank/saving accounts
• Active insurance programs
• Immigration status in the destination country
• Family members in Israel (spouse, children)

6
Israeli Taxation for Expatriates

• Marginal Tax 48 (gt53k)
• Basic Tax Deduction (10-45 of 3,640)
• Accommodation Deduction (2.3K-5.2K)
• Education Deduction (539 per child)
• National Insurance Passive Income

7
Taxation US (100K)

• Federal 12 (M2) 20 (S) in average (M 25
  gt61K, S 28gt74K), standard deduction (M 10K,
  S 5K), personal allowance (3.3K)
• Social Security 7 in average (1.45 gt94K)
• State 4 (M2) 6 (S) in average (M 9.3
  gt83K, S 9.3gt41K)
• Capital gains Short term marginal, Long term
  15
• Tax withholding ? W2 ? W4
• Tax Advantages
• Temporary residency
• Standard/Itemized Deduction
• Donations Used car
• Two parents working day care costs
• 401K

8
Israeli Insurance

• National Insurance residency test
• N.I. continuation payments
• Medical Insurance
• Medical Insurance upon repatriation
• LTD Insurance
• Life Insurance

9
Insurance - US

• Long Term Disability
• After 90 days
• 2/3 of income (up to a ceiling)
• Life and ADD
• 2 annual salary (up to a ceiling)
• Business Travel
• 4 annual salary (up to a ceiling)

10
Medical Insurance

• Preferred Provider Organization (PPO)
  (in-network)
• Deductible (250/750)
• Out-of-Pocket (1,000/2,000)
• Copay (5-50)
• Coverage 90
• Exclusive Provider Organiz. (EPO)
  (out-of-network)
• Deductible (250/750)
• Out-of-Pocket (2,000/4,000)
• Copay (5-50)
• Coverage 70

11
Medical Insurance (cont.)

• Dental
• Deductible (50/150)
• Preventive 100
• Basic Services 80
• Major Services 60
• Maximum Benefit - 1,500 (per person)
• Vision
• Deductible (50)
• Exam 12 months
• Frames 24 months
• Lenses 24 months
• Get a physician in the first month
• Plan your insurance benefits

12
Income Level

• Compensation Approach
• Top-Down
• Bottom-Up
• Level of Income
• Gross Income
• Taxable Income
• Net Income
• Spendable Free Income
• Total Free Income
• Current Vs. Future Free Income

13
Level of Income
14
Vacations, Holidays Leaves

• Annual Vacation 10-20 days
• Holidays 8 Public Holidays 2 Floating Days
• Accrued Vacation up to 30 days
• Vacation Redemption only at termination
• Sick Leave 5 days (inc family leaves)
• Up to 12 weeks of Medical/Family Leaves

15
Holidays
New Year's Day January 1 Martin Luther King,
Jr. Day- January 19 Valentine Day -
February President's Day February St Patrick's
Day March17 Good Friday - March/April Easter -
March/April Mother's Day - Second Monday in
May Memorial Day May 30 Father's Day -
June Independence Day July 4 Labor Day - First
Monday in September Columbus Day - 12
October Halloween - 31 October Veteran's Day -
November 11 Thanksgiving - Last Thursday Friday
in November Christmas Day - 25 December 2
Floating Holidays Public Holidays
16
Immigration ConsiderationsB-1 Temporary
Business Visitor

• B-1 May enter to the US in Order to
• Negotiate contracts
• Sell Company Products
• Develop Business Leads
• Attend Conferences
• B-1 Visa holder must retain unrelinquished
  domicile in a foreign country where he intend to
  return
• B-1 Visa holder may not receive any compensation
  in the US except for incidental expenses

17
Immigration ConsiderationsH-1B Visa Specialty
Occupation

• H-1B Visa apply to foreign nationals employed in
  specialty occupations requiring theoretical and
  practical application of highly specialized
  knowledge as well as BA or equivalent experience
• Limited quota for H-1B Visa in the last several
  years.
• The prospective employer must prove an inability
  to hire a local employee for the relevant
  position
• Processing take 3 to 5 months
• H-1B Visa allow for a maximum 6 years stay
• An H-1B Visa is transferable to a new employer
• Spouses unmarried children under 21 receive
  derivative H Visa. Spouses are not authorized to
  work

18
Immigration ConsiderationsL-1 Intracompany
Transferee

• L-1 Visa (Intracompany Transferees) allows
  foreign companies with branches/affiliated
  operations in the US to transfer needed personnel
  to the US
• L-1 Visa may be issued to employees in executive
  / managerial positions (L-1A) or positions
  involving specialized knowledge (L-1B).
• Managers/executive may retain L-1 status for up
  to 7 years and specialized-knowledge employees up
  to 5 years.
• Spouses unmarried children under 21 receive
  derivative L Visa. Spouses are authorized to work
  in the US.

19
Immigration ConsiderationsE-1 Visa Treaty
Trader

• E-1 Treaty Trader Visa permits foreign nationals
  to enter the US to engage in substantial trade
  with treaty countries
• Substantial is measured by both total value as
  well as the number of transactions.
• The US enterprise must be majority owned by a
  treaty country
• An E-1 Treaty trader must be employed in a
  managerial capacity or a capacity that requires
  skills that are essential to the firm.
• E-1 granted for 4-5 year with an option to be
  extended
• Spouses unmarried children under 21 receive
  derivative L Visa. Spouses are authorized to work

20
Preparation

• Translation of
• Medical Immunization papers Family MDs
  letter
• School records
• Car insurance insurances agent letter
• Bank letter
• Medicines/prescribed drugs for 1 month
• Authorities
• Social Security
• Re-direct you post
• Deposit weapon
• Broadcasting Authority
• Army Unit

21
Household Moving

• Attended air freight documents, valuables,
  cloths, books toys toiletries for several days.
• Un-attended Air-freight 10 days, cloths, books,
  games, video, baby chair, toiletries.
• Sea-freight at least 6 weeks.
• Some furniture/appliances are cheaper to buy in
  the U.S. than to ship.
• Small appliances can be shipped (adaptors)

22
Banking

• Credit history get one ASAP
• Saving/checking accounts
• ATM/Debit card
• Certified credit card
• Credit Card companies

23
Housing - Terms

• 2 bedrooms house 2 bedrooms living room.
• 10.67 square feet 1 sqm.
• Condominiums units with one or more common walls
  
• Duplexes single building divided into two homes
  and occupy one lot.
• Duets a duplex that occupies two lots.
• Patio homes duets or single-family homes with a
  larger yard or patio.
• Planned unit developments (PUDS) several
  single-family homes or townhouses.
• Single-family homes single homes land or lot.
• Townhouses two-story homes with at least one
  common wall.
• Zero lot lines home with a wall located on the
  property line.

24
Housing - General

• Property Market contradicting trends (sell Vs.
  rental) ? landlords choose to sell rather than
  rent ? tight rental market.
• Apartment Complexes ? popular solution
• Most properties are un-furnished.
• Quality properties rented within a few weeks of
  being on the market, sometimes within days.
• Weekend and evening viewings are almost
  impossible ? hours during the working week.

25
Housing - Application

• SS
• Driver License
• Pets
• Work (employment agreement, HR contact)
• Bank Account (a letter from the Israeli bank)
• Credit history
• References
• Deposit

26
Housing Market Rental Prices

27
Utilities

• Gas, electricity and water supplies are regulated
  by various utility companies.
• Some utilities (heat, hot water) may be included
  in the monthly rent. If not they need to be
  connected.
• utility companies usually requires a cash deposit
  before turning on the service. Then monthly bills
  are received.
• PGE electricity gas
• Phones Pacific Bell, many providers of
  international and long-distance phones, do
  shopping
• Cell phones The credit history saga
• Water, garbage - municipality
• Cables ATT

28
Buying a Car

• Typically two cars (new/used)
• Price list
• New/Used
• Dealers
• Agents
• Ads
• Israeli repatriates
• Car Insurance

29
Car Insurance

• State law requires that a driver must be
  financially responsible for their actions.
• Liability insurance, then, is mandatory when
  owning or operating a car.
• Foreign insurance policies are usually not
  applicable and are often times insufficient.
• Advisable to get both comprehensive and collision
  automobile insurance as well as legal protection
  insurance.

30
Driver License

• Within 6 months from arrival
• Social Security/ITIN Number is required
• Written test
• Driving test

31
Public Schools

• Very good in general
• Chinese Hispanic population
• Each city is a separate school district.
• Funded by state taxes.
• Each schools must adhere to state policies
  (allocation of funding, administration of
  certified teachers, purchase of school supplies
  and library services).
• School groups
• Day care centers Schulla, private
• Elementary (including kindergarten) (Ages 5 to
  11)(Grades K to 6)
• Junior/Middle (Ages 12 to 14)(Grades 6 to 8/9)
• High (Ages 14 to 18)(Grades 9 to 12)

32
Jewish Schools

• SPHDS Orthodox
• Mid-Peninsula Jewish Community Day School The
  reform school
• Torah Academy - Chabad School
• Los Gatos Chabad school

33
State Colleges

• University of California schools 4-year
  undergraduate schools that offer graduate schools
  in many categories. Admission standards is higher
  than the state universities or community
  colleges. Berkeley, Santa Cruz and San Francisco.
• California State Universities Hayward, San
  Francisco, San Jose and Sonoma. Tuitions to be
  less for these schools compared to the UC
  schools.
• Community Colleges over 20 community. specialize
  in practical skills. tuition costs are fairly
  reasonable for all students.

34
Adult Education

• Admission tests
• Toefel English test for all foreigners
• SAT Psychometric test for first degree
• G-MAT MBA
• GRE MA
• Private Universities
• State Colleges
• ESL (English as Second Language)
• Adults studies (colleges, community centers)