Now that the chaos of another US tax busy season has passed, it’s an opportune time to reflect on your mobility program with a post-tax season check-up. Taking time now to review this past busy season will allow you and your mobility tax provider to discover ways to enhance the employee experience, highlight areas of risk and outline necessary actions, and understand areas of frustration so you can strategize possible improvements. To guide you through this review, we’ve created a checklist that includes key considerations and tips for a successful and rewarding post-tax season assessment.
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Technology, growth in remote work, and global opportunities are empowering more and more people to take jobs across international and domestic borders. But as you award your cross-border employees with equity-based compensation, your tax compliance risk may be skyrocketing.
Luckily there are ways to navigate these mobile equity challenges while keeping your company and employees tax compliant.
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.
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.
As the world of cross-border business returns and business travel begins again, you are likely thinking about your mobility program and its ability to scale with your organization’s global goals. And as your mobile workforce grows—whether it consists of remote workers, business travelers, or traditional assignments and transfers—you must consider the complications and major mobility tax issues that will surface as business travel increases.