1. EXPAND YOUR HORIZONS Make the Right Connections

2. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson, C.E. Anderson & Company Kevin Shimkus, Deloitte Dawn Higgins, Nestle Purina PetCare Product Technology Center

3. TEMPORARY DOMESTIC ASSIGNMENTS Short Term Assignments Generally – assignments of less than one year, then the employee returns home. Long Term Assignments A less than permanent, shorter duration relocation in which the employee returns back home upon completion of the assignment.

4. SHORT TERM ASSIGNMENTS What they are? When are they used? How will usage volumes change? Why doesn’t everyone use them?

5. FORMAL POLICIES

6. ASSIGNMENT PURPOSES

7. PROJECTED USAGE

8. ASSIGNMENT CHALLENGES

9. EXPAND YOUR HORIZONS Make the Right Connections

10. Domestic Travelers : Setting the Stage Short term business travelers Frequent business travelers Short term assignment Long term assignment Relocation

11. Tax Considerations Federal –Tax home –Taxation of travel expenses and per diems State & Local –Withholding –Different definition of “wages” –Deferred compensation –Tax resident

12. Tax Home Rev. Rule 60-189 Traveler must be “away from home” for travel expense to be excluded from income Principal place of business “Tax turtle”

13. Amount of Time Away From Home Rev. Rule 93-86 Taxpayer has relocated “tax home” when they have exceeded 12 months in a location or when there is an expectation for them to exceed 12 months in that location.

14. CaliforniaConnecticut Very aggressive regarding non-resident wage withholding and tax remittances No De Minimis threshold De Minimis threshold 14 days IllinoisNew York No De Minimis threshold De Minimis threshold 14 days December 2, 2009 CT issued Announcement 2009(9) requiring employer wage reporting and tax withholding for non-residents working 14 or more days in CT throughout the year Has quite ‘favorable’ non-resident guidelines — Especially if company is not located anywhere in IL Uses an informal calendar year de minimis threshold for state tax withholding for a non-resident working in New York as reported in its state Field Audit Guidelines issued July 1, 2004 Short Term Business Travelers: State to State

15. State Tax Issues Different definitions of “wages” –Health savings accounts –Domestic partner benefits Not all states accept Federal W-4 Deferred compensation & equity compensation

16. Local Tax Issues Local income tax withholding Local employer taxes

17. Contact Information Kevin Shimkus Deloitte Tax LLP 312-486-3254 kshimkus@deloitte.com

18. EXPAND YOUR HORIZONS Make the Right Connections

19. Nestlé Purina PetCare Our Mission To bring several employees (40+) to the St. Louis Headquarters Office to work on our SAP implementation project.

20. Nestlé Purina PetCare How to we plan for this? Do we have a policy? What’s our current policy? Who needs to help me?

21. Nestlé Purina PetCare How to Plan: Identify plans / practices already in place Gather your resources Partner with Management (HR, Business, Factory) Partner with Legal Partner with Relocation Provider Partner with Finance / Tax / Audit Partner with Service Providers - Corporate Housing, Rental Car Company

22. Nestlé Purina PetCare Develop our Policy: Expanded on plans / practices in place Partnered with key resources Communicated the policy and the process Face-to-Face meetings Email Offered project incentives HR Manager managed and owned the process

23. Nestlé Purina PetCare Policy Benefits Offered: En route expenses Return trips home every week or month Housing accommodations (pet friendly furnished corporate apartment or extended stay hotel) Rental car or mileage reimbursement for personal car Per diems Miscellaneous expenses allowance (start and end of assignment) Tax preparation and tax equalization assistance Family accompaniment (special circumstances)

24. Nestlé Purina PetCare Challenges: Tax compliance and expense tracking Family and personal issues Communication of policy changes From an HR perspective – keeping employees engaged, morale

25. Nestlé Purina PetCare Lessons Learned: Over communicate Policy updates, changes, etc. Involve partners early and often Evaluate the policy, program

26. EXPAND YOUR HORIZONS Make the Right Connections

27. POLICY BENEFITS FOR TEMPORARY DOMESTIC ASSIGNMENTS

28. DOMESTIC RELOCATION POLICY RESEARCH TEMPORARY DOMESTIC ASSIGNMENTS Trippel Survey & Research, LLC © January, 2012 (Used with permission) No part of this work may be reproduced Copies of the report may be purchased by contacting Trippel Survey & Research, LLC at 501 922-4000

29. Thank You for Attending! Questions?