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.
As the UK government rapidly approaches the latest (and final?) deadline to strike a deal with the European Union (EU) Parliament to agree to terms on leaving the EU, the impact on employees assigned to the EU should be carefully considered.
In today's workforce, it is common to have employees working on multiple projects across the country or around the world. While permanent and long-term assignments are generally managed through a defined HR function, managing short-term business travel tends to be a bit more challenging. Actively managing short-term business travel can greatly reduce risk for your organization and business travelers. Thus, developing a structure to oversee this area is imperative.
If your company has a mobility program, then the Worldwide ERC® Global Workforce Symposium is a must attend event.
Most companies recognize that sending an employee overseas for a long-term assignment or permanent relocation can create a broad range of issues for both the employee and employer. Those companies are aware that they will likely need to provide the mobile employee with assistance in addressing such issues as visas, work permits, and travel and relocation expenses. The fact that the employee and employer are likely facing a new tax environment following the move is sometimes unknown or may even be kicked down the road to be dealt with after the other issues have been resolved.
If your company has a mobility program, you must attend the Worldwide ERC® Global Workforce Symposium.