Our team of mobility tax professionals is always looking to keep organizations updated on industry trends and regulations regarding international employees. In addition to our regularly updated blog, we put a wealth of resources at your fingertips regarding mobility tax, global equity, and business travel—including on-demand webinars, online newsletters, and downloadable guides.
We’ve put together this roundup of some of our top blog articles that we published in Q2.
Taxes for Overseas Workers
In “What Your Company Needs to Know About Taxes for Overseas Workers,” Carolyn Goldfeder, Manager in GTN’s Atlantic region, discusses the different obligations employers and employees need to consider when employees work in a different country, even if it is only for one day. For employees, filing and withholding obligations vary depending on the country. Employers also need to be mindful of drafting the right policies and processes for overseas employees; their plan should account not only for employees’ unique tax situations but also for how the company plans to support internationally based employees in its payroll and accounting systems.
“An employer with overseas staff must be prepared to comply with the local and national tax laws of the employee’s Host country. … Noncompliance with a country’s reporting and withholding obligations can be a costly mistake.” Read more.
Staying Tax Compliant with Global Employees
Diana Chan, Manager in GTN’s Pacific region, asks, “Are Your Global Employees Tax Compliant?” by laying out potential areas of noncompliance for an organization with global employees. Employers are facing more financial, legal, and reputational risks for noncompliance with tax regulations in their employees’ Host countries. For example, Chan reviews why income tax treaties in a Host country may not cover filing regulations, along with additional considerations to keep in mind if your employee is a US citizen or a green card holder.
“Improvements in technology have made it easier than ever for companies to account for employees operating in overseas locations. The reduction in technological barriers has also made it possible for businesses to take advantage of a telecommuting workforce, located in both their Home country and overseas.” Read more.
Tax Regulations for US Citizens and Green Card Holders
If you’re looking for more in-depth knowledge on regulations for US citizens and green card holders, “Are US Citizens and Green Card Holders Still Subject to Taxes in the US when Living Overseas?” by Jennifer Stein, Managing Director for GTN’s Great Lakes region, covers the various obligations that US workers face while living abroad. Citizens and green card holders may qualify for a foreign earned income and housing exclusion—though they may still be subject to state income taxes.
“... These individuals will need to continue filing US tax returns to declare all of the income they earn in both the United States and their Host country. This requirement does not change if they are employed or paid from a non-US employer.” Read more.
How to Avoid Common Mobility Tax Mistakes
Sajjad Abadin, Senior Manager in GTN’s Great Lakes region, discusses common mistakes that employers make when trying to comply with mobility tax regulations in “Avoid These Common Mobility Tax Mistakes.” These common mistakes include not developing a plan to minimize future tax burdens, not properly tracking employees’ compliance with tax regulations in their Host countries, and not providing resources to help employees understand their tax obligations when working abroad.
“Employers are increasingly turning to mobile employees to fulfill their international staffing needs, but many companies fail to understand the complexity, costs, and compliance obligations that result from cross-border employment.” Read more.
What Is a Mobility Tax Specialist?
Employers looking for guidance on following tax obligations for global employees can turn to a mobility tax services firm to help them navigate through the landscape. In “What Does a Mobility Tax Services Firm Do,” Sowmya Rao, Manager in GTN’s South region, shares why a mobility tax services firm is valuable for an organization with mobile employees. In addition to structuring a tax-efficient policy for working overseas, good mobility tax firms keep up with changing regulations both in the employers’ Home and Host countries.
“Even companies employing large tax departments often find that they are unable to stay on top of the constantly changing tax laws and regulations affecting mobile employees in both their Home and Host locations. ... That is why firms specializing in mobility taxes have overseas offices or affiliates in nearly all of the countries and territories with businesses that are actively involved in the global economy.” Read more.
Our team regularly updates our blog with informative articles on trends in the mobility tax landscape and tips for ensuring your company is compliant. Subscribe to our blog to stay updated on mobility tax issues; you’ll even receive an email notification when we post a new article. You can also contact our team if you’re looking for a more in-depth consultation on how your company can craft a tax-efficient global employment policy, whether you’re just starting out with mobile employees or are a large enterprise with offices around the world.