Tier 4 — Entry-Level / New Grad / Intern
New hire, renter, individual or couple, no children.
WHR Global: 'lump sum range starts at $1,500 (entry-level college grad)'. CapRelo and moveBuddha cite $5K-$15K typical.
1.What this tier typically includes
- Lump-sum cash payment (most common)
- Optional rental-truck reimbursement
- Optional 1-2 weeks temporary housing
- No home-sale assistance
- No spouse assistance
- Limited or no gross-up
- Sometimes capped at $5K with no tax assistance
2.Gross-up math at this tier
OBBBA-permanent tax treatment means every taxable component requires gross-up at the 29.65% combined federal rate (plus state). For a tier 4 — entry-level / new grad / intern at the midpoint of the cost band:
| Item | Amount |
|---|---|
| Net benefit to employee (midpoint) | $5,986 |
| Gross-up multiplier | ×1.42x |
| Total cost to employer | $8,500 |
| Tax gross-up portion | $2,514 |
3.How this tier shifted post-2017
Before TCJA 2017, qualified moving expenses (household goods + first-trip travel) were excludable from employee income under IRC §132(g). Companies paid the relocation, employees didn't see it on their W-2, no gross-up was needed. TCJA suspended that for 2018-2025; OBBBA (signed July 2025) made the suspension PERMANENT. As of 2026, every relocation benefit at every tier requires gross-up.
Practical impact at this tier: employer cost is now ~42% higher than the pre-2017 economics for the same benefit delivery. Many companies have shifted toward lump-sum + core/flex structures to give employees more choice over which components they actually need.
4.When to use this tier
Entry-level / new-grad / intern relocations. Often pure lump-sum cash payments without gross-up at all. WHR cites $1,500 as the floor for entry-level college grad relocations.
Source: https://whrg.com/blog/how-much-is-the-average-u-s-domestic-relocation-package/ · Verified 2026-06-03 · industry reported
Other tiers
Tier 1 — Executive / Senior Leader · Tier 2 — Mid-Senior Management · Tier 3 — Mid-Level Professional / Engineering