GTN Mobility Tax Blog

It might seem counterintuitive to a US citizen or permanent resident (i.e., green card holder) who has just taken a new international job, that they may still be required to file a US federal income tax return after relocating. In addition, these international mobile employees may have other filing obligations including estate or gift tax returns, estimated tax payments, and foreign bank account reports.

Global mobility tax services encompass the full range of tax, payroll, and compliance activities required when employees work outside their Home country. From managing shadow payrolls to supporting tax equalization, these services help companies maintain compliance, reduce risk, and create a smoother experience for mobile employees.

Accurately budgeting and accruing for tax equalized assignment costs is essential to reduce year-end surprises and for keeping your mobility program financially predictable. The initial tax cost projection is the starting point which considers key elements of the assignment compensation package. However, the real challenge to maintain a reasonable accrual often comes with managing complexities that can arise once the assignment is underway. 

Throughout 2025, service remained at the heart of GTN’s identity, guiding how we engaged with communities both locally and globally. Beyond our day-to-day work, we stayed focused on supporting meaningful causes and making a positive impact in the communities we serve. This commitment reinforces the core values that guide our firm and our responsibility to contribute to a more equitable, sustainable, and resilient future for everyone.

When employees relocate across borders, whether internationally or within the US, they can face major tax complexities. A move from a low-tax location to a high-tax location, for example, can significantly increase their tax liability. Beyond this, they may face challenges related to the sale or rental of a home, moving expenses for state reporting purposes, residency issues, and a range of other tax considerations they may not be prepared to handle on their own.

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Managing mobile employees across borders can get complex fast. From tax residency and short-term business visitor rules to payroll, social security, and treaty relief, there’s a lot to coordinate to stay compliant and reduce risk. That’s why the Mobile Workforce Collaborate (MWC) hosted a corporate-only roundtable designed to help HR and mobility teams tackle these challenges in Canada, Mexico, and the UK, with clear, practical takeaways.