Most companies recognize that sending an employee overseas for a long-term assignment or permanent relocation can create a broad range of issues for both the employee and employer. Those companies are aware that they will likely need to provide the mobile employee with assistance in addressing such issues as visas, work permits, and travel and relocation expenses. The fact that the employee and employer are likely facing a new tax environment following the move is sometimes unknown or may even be kicked down the road to be dealt with after the other issues have been resolved.
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Improvements in technology have made it easier than ever for companies to account for employees operating in overseas locations. The reduction in technological barriers has also made it possible for businesses to take advantage of a telecommuting workforce, located in both their Home country and overseas. The convergence of the two trends has resulted in an increasing number of companies discovering that they must now address the tax and payroll compliance issues that result from employees operating outside of their Home country.