The definition of the “future of work,” specifically within the global mobility space, continues to evolve. And with shifting remote work trends and new developments for how and where employees work, corporations need to understand how to navigate this new landscape to ensure tax compliance and avoid unnecessary risk. For some businesses, the future of work will allow a number of employees to work from (almost) anywhere they choose. For others it may be a hybrid approach, where some employees will work in an office and others will work remotely. But no matter how you define the future of your company workforce, there will exist the need to prepare for and manage the ongoing tax risks associated with these employees.
From sharing remote workforce best practices to outlining tips on how the mobility department can take a lead in creating sustainable changes for their company, our team of experts provide the mobility tax information you need to help navigate the many nuances of global mobility. Here is a roundup of the top ten resources that may provide you with new insights as you determine the best approach for your future of work.
Over the past year, there has been a huge uptick in remote workers, causing workloads—required to manage this population—to increase significantly. Couple this with a current tight job market where there are more open positions than qualified candidates in the HR and mobility space, and you have a recipe for stress and job fatigue. What we are hearing in the marketplace is that HR and mobility managers are overwhelmed and struggling to deal with the new future of remote work. All of this, plus the continuing COVID impact, is causing more than just headaches.
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. We will also 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.
Managing a mobile workforce, especially at a time when many employees are remote, can be complicated. Throw in a number of those employees receiving equity or other long-term incentive compensation and the reporting and withholding challenges likely rise to the top of your “pressing issues” list. Making sure all departments align and collaborate is essential in your efforts to manage a successful equity compensation program.
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.
You likely know by now that employees who receive equity-based compensation, and who relocate—either domestically or internationally—during the life of the award, create tax withholding and reporting obligations. Still, when it comes to equity reporting and withholding, companies do not always act to address the risk with their mobile workforce. Often this comes down to a lack of staffing, information, or technology. So how do you move from the stage of recognizing the problem to finding and implementing a solution?
As travel is slowly returning worldwide, and remote work is becoming truly remote, the key to having a successful remote workforce policy is to have a plan. Having an approach that essentially lets your employees freely choose where they work puts both the company and the employee at risk. And there are many risks ranging from health, duty of care, employee benefits, and insurance, to more operational aspects such as immigration, tax, payroll withholding, and social security. Below are some guidelines for how you can handle your traveling remote workforce.
GTN, along with Littler Mendelson, P.C. and Alliant Insurance Services, hosted a three-part webinar series on remote work and how companies can respond to this new way of working. Experts in mobility tax, employee benefits, and labor law, with a guest panelist and corporate practitioner from VMware, provided their perspectives on the risks, strategies, and approaches employers should take for long-term remote workers. Several scenarios were outlined during the discussion and each panelist shared their thoughts on how companies could handle each situation.
During the past year, the uncertainty that came with the COVID-19 pandemic combined with travel bans caused many companies to put a hold on new expatriate assignments. However, the increased rate of vaccination, especially within the US, is now creating opportunities for companies to consider re-starting international assignments. At the same time, the combination of increased spending by governments to fight the pandemic along with reduced tax revenue due to pandemic-induced economic slowdowns, are creating an environment ripe for tightening regulatory compliance for cross-border assignments and business travelers.
As the borders between states and countries are opening back up, tax jurisdictions are becoming increasingly savvy as to the movement of talent and are ramping up efforts to collect tax revenue from corporate and individual taxpayers. This means that organizations, now more than ever, need to implement tracking capabilities for their workforce, understand the potential risks in new tax jurisdictions, and set up internal policies and processes to cope with an increase in global movement.
Prior to 2020, non-traditional mobility scenarios were on the rise, including remote workers and commuters. The COVID-19 pandemic greatly accelerated this trend and for many companies, it has proven to be a positive and potentially permanent addition to their workplace culture. As vaccine distributions continue, many companies are now considering a return to the pre-pandemic office setting, but perhaps in a more flexible or socially distant way. On a macro level, this will likely lead to some type of new balance between in-office and remote work scenarios. But how will this new flexibility impact your organization?
Whether you are new to the world of mobility tax, or an experienced mobility expert, the GTN blog is your resource center for informative articles on trends in the mobility tax space and tips for ensuring your company is compliant. Subscribe to our blog to stay on top of mobility tax news and learn ways to simplify your mobility tax program.
Looking for assistance with your future of work plans? Give us a call! We help clients work through the intricacies of building, implementing, and retaining future of work programs. Schedule a call with our team for guidance on building a policy, implementing automation for an approval process, or addressing your compliance concerns.