GTN Mobility Tax Blog

COVID-19, current travel restrictions, and government and business shutdowns have certainly made it difficult for many mobile employees to carry out “business as usual.” This can be particularly true for employees that were on a short-term or long-term assignment prior to COVID-19. Because of safety considerations or travel restrictions, two common scenarios that have emerged from the COVID-19 pandemic include:

UPDATED: February 7, 2020 

On January 31, 2020 the UK left the EU and has entered into an 11-month transition period. Now that this departure has taken place, it is a good time to carefully review the impact this will undoubtedly have on employees assigned to the EU.

Before you send an employee off on a new assignment in Canada, there are a few things they could probably use: a warm parka, an introductory guide to ice hockey, and a thorough understanding of Canadian tax law.

For employees working in any country, understanding the tax system is crucial to avoiding unnecessary risks and costs. When it comes to Canada, this starts with determining whether your mobile employee will be considered a Canadian resident or be considered a non-resident business traveler.

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.

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.

An employee is likely to see an offer of an international assignment as a vote of confidence from an employer and an opportunity for career advancement. However, there are a number of questions the mobile employee should ask of his or her employer prior to accepting the international assignment, especially when it comes to questions related to regulatory requirements (e.g., immigration, tax compliance) and compensation and benefits issues in both the employee’s Home and Host countries.