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.
Companies that plan to send employees outside of their Home country should first know about the possible tax complexities that may result from the use of an international workforce. Here are five things employers need to know before sending employees 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. The following are common mobility tax mistakes we encounter the most that are made by employers with mobile employees and tips for avoiding them.