GTN Mobility Tax Blog

Picture this.

Due to COVID-19 and the sustained impact, your company has made the decision to continue to allow employees to work from home going forward.

To you, the HR Manager, “home” means employees must work from the address on their paycheck, but to the employee, “home” just means they can work remotely from anywhere they choose. And some have chosen to work in another state for the next several months, while others have chosen to work in another country.

Your mobility tax provider informs you that your remote workers are potentially creating reporting and withholding tax risks and compliance requirements for themselves and the company when they work outside of their Home jurisdiction. You now realize you need to know exactly where everyone is working so you can begin to address any potential compliance risks that are arising.

Over 55 years ago, scientists introduced the “greenhouse effect.” In November 1965, the Environmental Pollution Panel along with the President’s Science Advisory Committee issued a report called, “Restoring the Quality of Our Environment,” that pointed out how increasing temperatures in the atmosphere was occurring due to the buildup of carbon dioxide. The phrase “global warming” (i.e., climate change) was coined a decade later when the issue of a warming climate began to reach a larger audience.

Now, as the effects of climate change are felt by more than just the scientists, individuals around the world are urging corporations to step in. Workforces yearn for their employers to be environmentally, socially, and culturally thoughtful. In this article, we will explore the principle of sustainability and how the global mobility department can not only participate but take the lead in creating change within their corporation. Below we highlight both short- and long-term goals you can create for your global mobility program along with potential resources to help make these goals a reality.

Managing a mobile workforce, especially at a time when many employees are remote, can be complicated. Throw in a number of those employees receiving equity or other long-term incentive compensation and the reporting and withholding challenges likely rise to the top of your “pressing issues” list. Making sure all departments align and collaborate is essential in your efforts to manage a successful equity compensation program.

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?