GTN Mobility Tax Blog

This article was originally published in Corporate Compliance Insights.

Business travel is once again raging and is mobilizing the already travel-happy workforce even more. The Global Business Travel Association expects global business travel spending to overtake pre-pandemic levels, reaching $1.4 trillion this year. It also predicts it will accelerate to $1.8 trillion in the next three years.

This resurgence in business travel adds to a remote workforce that’s more active than ever, with 58% of employees now saying they have access to some type of remote work option.

However, international and remote work often creates complicated tax situations, inviting a long list of new compliance risks. All the while, members of the mobile workforce are largely unaware of the tax and compliance risks they’re putting on themselves and their companies by participating in remote or international work.

Has this happened to you? Your company has a mobile workforce spread out over multiple jurisdictions, and you realize you need help with the mobility tax complexities that come with having employees working outside of their usual location. So, you reach out to a well-known, large accounting firm offering an impressive list of services, technology, and experts, and who may already be providing corporate tax services to your company. 

This article was originally published in HR Daily Advisor.

Taxes can be intimidating, time-consuming, and confusing for any employee. But tax complexities shoot through the roof for international employees, business travelers, and remote workers.

Here are the reasons taxes are so tricky for mobile and remote employees, along with the secrets to communicating tax matters effectively.

In our globalized business landscape, international assignments remain a cornerstone of talent management strategies. And the responsibility for HR and mobility program professionals to orchestrate seamless transitions for employees stepping into roles on foreign soil is pivotal. The success of these endeavors hinges on a multitude of factors, including strategic planning, resource allocation, and policy implementation.

Equity plan program managers and participants have likely heard of an 83(b) election (“Election to include in Gross Income in Year of Transfer”), but often its application and advantages are misunderstood. Section 83 of the Internal Revenue Code (IRC) governs several tax functions when determining the tax consequences of transfers of restricted property such as equity or stock. These special rules determine whether an employee has income resulting from a transfer of property, when an employee will recognize taxable compensation, and how much taxable compensation will be recognized. 

As we approach the end of another year, businesses are navigating the intricate landscape of year-end payroll, with a particular emphasis on the unique challenges posed by the evolving nature of remote and mobile work. Over the past few years, we have witnessed a significant change in thinking about work dynamics, with remote and mobile employment becoming more prevalent than ever. Consequently, mobility and payroll professionals are faced with a set of challenges that demand a nuanced approach to ensure accuracy, compliance, and employee satisfaction.