GTN Mobility Tax Blog

The number of businesses choosing to move employees abroad, as part of their efforts to increase their international presence, is increasing each year. Unfortunately, some businesses are exposing themselves to unnecessary risks when it comes to tax compliance in the Home and Host countries of those employees by failing to have a plan in place to avoid mobility tax problems. Below are five common mistakes made by employers who move employees abroad.

Before you send an employee off on a new assignment in Canada, there are a few things they could probably use: a warm parka, an introductory guide to ice hockey, and a thorough understanding of Canadian tax law.

For employees working in any country, understanding the tax system is crucial to avoiding unnecessary risks and costs. When it comes to Canada, this starts with determining whether your mobile employee will be considered a Canadian resident or be considered a non-resident business traveler.

Last week we shared information about withholding US social security tax from wages. This week, we want to talk about social security within the European Union (EU), European Economic Area (EEA), and Switzerland. Many of the conversations we have with companies sending business travelers intra-EU involve a deep sigh and a shake of the head. Getting the Posted Worker Directive (PWD) and social security withholding obligations correct when sending an employee from one EU-member state to another is a necessary statutory requirement; yet for most it is an administrative challenge.

Each year, GTN hosts a firm-wide annual conference where all US employees as well as certain affiliated foreign offices from around the world, come together for three days to unite as a team and celebrate our accomplishments as a firm. What started as business-focused training in 2008 has evolved into the way we celebrate the past year, strengthen relationships, and give back to the community.

'Tis the season of giving and this year GTN is spreading joy by supporting the Toys for Tots mission to bring toys to less fortunate children at Christmas.

US social security tax is withheld from employees’ wages under the Federal Insurance Contributions Act (FICA), which provides funding for the Social Security and Medicare programs. The goal of the Social Security program is to offer retirement, disability, and survivor’s benefits, whereas Medicare provides health insurance. 

Although many companies believe they have a good process in place to address the withholding of these taxes for their US-based employees that work in the US, it is critical that they review and understand the rules for their internationally mobile population. Through proper review and planning, companies can mitigate risks and may also achieve substantial cost savings.