GTN Mobility Tax Blog

Global mobility programs are a win-win solution for both your company and your mobile employees.

The COVID-19 pandemic and related economic challenges have resulted in fundamental changes for many industries. We have seen labor market shifts, immigration restrictions, and budgetary challenges for national and local jurisdictions across the globe. At the same time, thanks to today’s ever-evolving technology, time zones and borders are not as relevant, and we can now work simultaneously with our colleagues across all corners of the globe—especially in this new world of remote or “work anywhere” workforces. However, these technology advances will also make it more possible for tax and immigration authorities to monitor and enforce regulatory compliance on both employers and their mobile employees.

The IRS recently made important changes to the Child Tax Credit which will enable many families to receive advance payments of the credit starting July 2021. Here is what you need to know about the 2021 Child Tax Credit and its impact on your mobility program.

You likely know by now that employees who receive equity-based compensation, and who relocate—either domestically or internationally—during the life of the award, create tax withholding and reporting obligations. Still, when it comes to equity reporting and withholding, companies do not always act to address the risk with their mobile workforce. Often this comes down to a lack of staffing, information, or technology. So how do you move from the stage of recognizing the problem to finding and implementing a solution?

By now, you may have heard or read that in 2019, the Department of Finance Canada tabled legislation which related to limiting the preferential stock option treatment enjoyed by employees in Canada. Now in 2021, with updated draft legislation and inclusion with the 2021 Federal Budget, Bill C-30 could significantly impact many employees who receive stock options granted to them on or after July 1, 2021.

As the world of cross-border business returns and business travel begins again, you are likely thinking about your mobility program and its ability to scale with your organization’s global goals. And as your mobile workforce grows—whether it consists of remote workers, business travelers, or traditional assignments and transfers—you must consider the complications and major mobility tax issues that will surface as business travel increases.

As travel is slowly returning worldwide, and remote work is becoming truly remote, the key to having a successful remote workforce policy is to have a plan. Having an approach that essentially lets your employees freely choose where they work puts both the company and the employee at risk. And there are many risks ranging from health, duty of care, employee benefits, and insurance, to more operational aspects such as immigration, tax, payroll withholding, and social security. Below are some guidelines for how you can handle your traveling remote workforce.