GTN Mobility Tax Blog

This article was originally published in HR.com. 

Uncertainty in the economy is making it harder for HR teams to plan and manage global mobility. A recent Fed survey shows business leaders feel more unsure about the future now than they did before the pandemic. And with a new US administration taking shape, many are waiting to see how changes to inflation, immigration, tariffs, and other policies will play out.

But companies with international employees can’t afford to pause. Now is the time for HR professionals to build a global mobility program that's flexible and strong enough to handle whatever comes next. In this article, we'll share practical steps to help you create a program that supports your business and your people—no matter what the future holds. 

Mergers and acquisitions (M&A) often bring significant complexities—especially when mobile employees are involved. Understanding your mobile population is critical, with key considerations spanning talent management, immigration, and tax compliance.

In this overview, we focus on mobility tax implications during M&A activities, organized into three essential areas: people, policy, and process.

Managing a mobile workforce, especially at a time when business travel is high, presents unique challenges for equity compensation programs. When employees work across multiple jurisdictions, the complexity of tax reporting and withholding requirements increases exponentially. Success depends on effective collaboration between your equity, HR, and payroll teams.

Now that the intensity of another US tax season has passed, it’s an opportune time to reflect on your mobility program with a post-tax season check-up. Taking time now to review this past tax season will allow you and your mobility tax provider to discover ways to enhance the employee experience, highlight areas of risk and outline necessary actions, and understand any frustrations that occurred so you can strategize future improvements. To guide you through this review, we’ve created a checklist that includes key considerations and tips for a successful post-tax season review.

The US is one of the only countries to require its citizens and permanent residents (i.e., green card holders) to file annual tax returns and report their worldwide income, regardless of their actual work location. When working outside the United States, it is often the case that US persons are subject to taxation in the county where they are physically located.

The modern workforce is a mobile one and has expanded beyond the traditional short- or long-term assignment. Today, mobility includes a variety of work arrangements such as remote and hybrid work, as well as short-term business travel. This shift has provided greater flexibility in how and where employees work, allowing organizations to access a wider talent pool and operate more efficiently across different locations. However, with increased flexibility comes the challenge of navigating complex reporting and filing requirements to avoid financial, legal, and reputational risks.