Domestic Relocation BP Intern / Co-op

Transcription

1 Domestic Relocation BP Intern / Co-op Updated: July, 2009 Domestic Relocation ELIGIBILITY TRAVEL TO THE ASSIGNMENT LOWER 48 STATES OFFSHORE-RELATED OFFICE ASSIGNMENTS, ONSHORE OFFICE AND FIELD ASSIGNMENTS FOR ALL SEGMENTS ASSIGNMENTS IN ALASKA Offshore Field Assignments HOUSING OPTIONS OPTION IS DETERMINED BY EMPLOYEE Option 1 Cash Allowance: All Bachelor, Masters, and PhD University Interns/Co-ops hired through BP s formal University Recruiting Program Onshore Technician Interns All Interns / Co-ops other than those covered in Section No Tax Assistance on Cash Housing Allowance Shipment of personal items Option 2 - Corporate Housing Assignments in Lower 48 States Assignments in Alaska: Alaska and Puerto Rico Interns with Assignments in the Lower 48 States Tax Assistance on Corporate Housing REPAYMENT AGREEMENT TAXES AND TAX ASSISTANCE IN GENERAL LIMITATIONS OF THIS POLICY...7

2 1.0 ELIGIBILITY Benefits may vary based on the type of assignment, work location and selected options for the duration of the assignment. Information provided by the intern/co-op on the Candidate Information Form will be used in the determination of benefits. Benefits will not be recalculated based on amended information provided at a later date unless approved by the Resourcing Group. All reimbursements and cash allowances will be paid via payroll on the first available paycheck. 2.0 TRAVEL TO THE ASSIGNMENT Intern/co-op is expected to fund expenses of travel to the assignment location and will be reimbursed on first paycheck, regardless of whether he/she travels from a campus location or another home location, so long as the travel is to the work location and the distance between the campus or other home location and work location is more than 50 miles. The intern/co-op is responsible for expenses associated with any personal travel (including daily commuting and personal travel to/from the campus or home location) that occurs during the internship assignment, except as otherwise indicated in Section 2.3. The intern/co-op is responsible for making all return travel arrangements. BP will provide the funds for the return trip as described in this policy see below. 2.1 Lower 48 States Offshore-related Office Assignments, Onshore Office and Field Assignments for All Segments If driving to/from the work location (at the start/end of the assignment) in a personal vehicle, the intern/co-op will be reimbursed for mileage related to one round trip (paid via payroll) using the most direct route. In addition, for every 400 miles driven one way, he/she will receive a per diem amount for lodging and meals. Reimbursement will be based on IRS standard mileage rates; will be taxable income subject to applicable withholding. Tax assistance will be provided as appropriate on this travel reimbursement. If traveling to the work location by air, the intern/co-op will be reimbursed for actual round-trip coach airfare based on a 14-day advance purchase ticket with a Saturday night stay-over. Tax assistance will be provided as appropriate on this travel reimbursement. A college intern traveling from Alaska or Puerto Rico to an assignment in the lower 48 states will be expected to travel by air only as described in this section 2.1.

3 2.2 Assignments in Alaska A college intern traveling from out of state to an assignment located in Alaska will be reimbursed for travel by air only as described in section 2.1. Reimbursement will not be provided to an intern who chooses to drive to the assignment. A college intern traveling within the state of Alaska to an assignment within Alaska will have the option to fly or drive to the assignment and will be reimbursed in accordance with section 2.1. The benefit for travel to assignment location does not apply to technician interns assigned to the North Slope. 2.3 Offshore Field Assignments To assist with potential monthly travel expenses to and from the BP pick-up point, the intern/co-op will be provided with an additional one-time, lump sum payment of $1,500 gross and will be subject to applicable tax withholding. Tax assistance will not be provided on this lump sum payment. 3.0 HOUSING OPTIONS OPTION IS DETERMINED BY EMPLOYEE BP provides several options for housing assistance that can be used during the period of the assignment. The amount of the assistance will be determined in part by the intern/coop s location, academic degrees and assignment. The intern/coop will be given the opportunity to select the most appropriate option from all applicable choices, based on his/her individual needs. Housing is available to all interns/co-ops regardless of the travel distance between the campus or other home location and work location. Once an option is selected by the intern/coop, there will be no changes. 3.1 Option 1 Cash Allowance: All Bachelor, Masters, and PhD University Interns/Co-ops hired through BP s formal University Recruiting Program A one-time, lump sum housing allowance payment of $3,000 for the period of assignment will be provided to all interns/co-ops hired through the formal University Recruiting Program less applicable withholding taxes. The payment will be made once the intern/coop starts work and is on BP payroll. This cash allowance is intended to assist with monthly rent, security deposits, utility connection fees or other rental-related expenses. The intern will be fully responsible for finding an apartment, roommate, signing a lease, setting up utilities, arranging for furniture, covering the cost of physically moving your goods, paying deposit, rent & utilities, etc. BP will not be able to assist with the relocation process if the cash option is chosen;

4 3.1.2 Onshore Technician Interns Due to the lack of housing options in more remote areas, onshore technician interns only will receive two additional lump sum payments of $750 gross each (before required taxes are withheld) and will not be tax assisted. The payment is to help with housing costs throughout the assignment. The first additional payment will be made approximately 30 days after payment of the allowance defined in section or within thirty (30) days of your start date if no payment is made under section 3.1.3; the second additional payment will be made approximately 30 days following the first additional payment defined in this section All Interns / Co-ops other than those covered in Section A one-time, lump sum housing allowance of $1,500 gross (before required taxes are withheld) will be provided to interns/co-ops who will be residing in the work location and who must travel more than 50 miles to the work location and who do not have the option of residing rent free by staying with parents or other relatives, or by obtaining housing through some other rent-free option during the period of the assignment. This payment will not be tax assisted. Rent paid to family members does not qualify an intern/co-op for this allowance. A copy of the rental agreement and other documentation may be required to substantiate the rent requirement. Payment will be made at BP s discretion, within thirty (30) days of receipt of all requested documentation No Tax Assistance on Cash Housing Allowance Tax assistance will not be provided on cash housing allowances under Section 3.1 and the payment is considered income. Federal income tax will be withheld from all payments at the supplemental wage rate (currently 25%). Social security/medicare (FICA) will also be withheld at the required rates, and, where applicable, state and/or local income tax will be withheld. Tax rates are subject to change. All lump-sum amounts stated above are intended to be gross amounts that will be delivered net of required tax withholding Shipment of personal items Interns with assignments in Alaska will receive a $1500 stipend, less applicable taxes, to help cover the costs to ship personal items (i.e. bicycle, additional luggage on flight, etc). Interns from Alaska and Puerto Rico with assignments in the Lower 48 states will receive a $1000 stipend, less applicable taxes, to help cover the costs to ship personal items (i.e. bicycle, additional luggage on flight, etc).

5 3.2 Option 2 - Corporate Housing Assignments in Lower 48 States Corporate housing will be provided by BP. All costs will be direct billed to BP (deposit, rent, furniture and bills - high-speed internet, telephone, cable, electricity, water, deposits and applicable fees such as parking) Pet deposits are excluded and are the responsibility of the Intern. All apartment complexes have been approved by BP and meet BP safety standards. In most cases, apartments are located within a reasonable distance of the BP work location. Corporate housing is available at most BP work locations in the lower 48 states; Roommate preferences will be accommodated to the extent reasonably possible, but the roommate must be an intern or co-op working for BP; The intern will need to provide a credit card to cover any damages and long distance phone charges; The intern will not receive any cash payments to move personal belongings and this is the responsibility of the intern. The housing provider will send a link to their website and the intern will "register" for housing services; The housing provider will place interns in a 2 bedroom, fully furnished apartment with a roommate limited exceptions may be granted for married interns; or on an individual basis at BP discretion Assignments in Alaska: BP Alaska will place the employee in partially furnished housing which sleeps 3-4 people; Students will be placed on a 1st come, 1st served basis, space is limited. Housing is located within a reasonable distance from the BP office; Intern will receive a $1500 stipend, less applicable taxes, to help cover the costs to ship personal items (i.e. bicycle, additional luggage on flight, etc); The payment will be provided via the first available payroll check Alaska and Puerto Rico Interns with Assignments in the Lower 48 States Corporate housing will be provided by BP as described in section Intern will receive $1000 stipend, less applicable taxes, to help cover the costs to ship and/or purchase personal items (i.e. bicycle, additional luggage fees, transportation, etc.) Tax Assistance on Corporate Housing The value of the corporate housing benefit provided under Section or will be imputed taxable income (i.e. BP s costs will be added to your W-2 as earnings). BP will provide tax assistance (See Section 5.0 below).

6 4.0 REPAYMENT AGREEMENT By accepting the funds distributed by BP during the assignment, the intern/co-op agrees to repay the Company for all or a portion of those funds as determined by the Company, if the intern/co-op does not complete the assignment as agreed or if he/she resigns before the scheduled end of the assignment.

7 5.0 TAXES AND TAX ASSISTANCE IN GENERAL Except as otherwise stated above, any lump-sum cash or other cash payment amounts under this policy are gross amounts taxable as wages and will be delivered to the intern/co-op net of applicable tax withholding and without tax assistance from BP. Thus, these amounts received directly by the intern/co-op may be significantly less than the amounts stated. Interns/co-ops should plan their spending and other financial matters accordingly. In those limited instances where the policy indicates that tax assistance from BP will be provided, the stated policy allowance amount (or in-kind benefit) will be delivered to you without reduction for tax withholding. In these cases, BP will pay directly to taxing authorities on your behalf the required tax withholding together with tax assistance also in the form of additional withholding. Please Note: BP gives no assurance that any tax assistance will be sufficient to fully protect you from out-ofpocket tax liability with respect to the benefit to which the tax assistance relates. You should consider this in any decision to accept an intern/co-op assignment. BP cannot give you personal tax advice, and BP encourages you to direct any concerns to your own personal tax advisor. 6.0 LIMITATIONS OF THIS POLICY BP s Relocation Policy is designed to provide relocating employees and their families reasonable financial assistance in keeping with industry practice. Through the delivery of the provisions of the Policy, BP also intends that information and resources, which are helpful in minimizing personal disruption and concerns, are provided. You are solely responsible for maintaining all records and receipts necessary to claim allowable Federal (and where applicable, State and Local) income tax deductions. Relocation provisions are limited to those expressly described in this Policy and the new work location Policies (or practices). Expenses other than those expressly included in this Policy will not be included in any lump-sum nor reimbursed. The relocation lump-sums and other payments are calculated to provide sufficient funds to cover reasonable total relocation expenses. The funds are delivered in a way to provide you greater spending flexibility. It is not anticipated that exceptions will be requested or granted. This Policy may not be construed as a benefit plan and payments received under this Policy will not be considered salary for the purpose of any benefit or compensation plans. The Company reserves the right to unilaterally amend, change, modify, delete, replace or add to the statements in this policy, at any time, with or without prior notice. The Company also reserves the right to interpret the provisions of this policy, and such interpretations will be final and binding. In addition, not every situation can be anticipated in written policies, guidelines and/or procedures, and the facts surrounding any situation can require discretionary judgments by appropriate levels of management.

8 This policy is not intended to create, nor does it create, any express or implied contractual rights in any person. Unless he/she has entered into an express written agreement signed by an authorized company representative, each employee of the Company is an "at-will" employee. Just as any at-will employee may terminate his/her employment at any time and for any reason, the Company may terminate any at-will employee at any time, with or without cause, and with or without prior notice.