GTN Mobility Tax Blog

Whether you manage business travelers, short-term international employees, or remote workers, you have no doubt heard about the “183-day rule.” Both globally and domestically, many tax jurisdictions expect an employer (as well as the employee) to track and report non-resident business travel. However, simply applying a “183-day” threshold does not always work to ensure tax compliance. Here we will take a deeper dive into the impact of income tax treaties on the tax cost of business travel, short-term assignments, and remote work scenarios.

If your auditor doubles as your company’s mobility tax services provider, you may have found benefits from this seemingly convenient arrangement.

It’s not unusual to see companies using the same firm to provide multiple kinds of accounting and tax services, especially for emerging and fast-growing companies. However, it is important to be aware of the challenges that may arise in this situation and understand why it may be beneficial to use different firms for your auditing and mobility tax needs.

By understanding your specific needs and the service limitations that can exist for audit firms, your organization will be in a better position to assess and select a vendor that will provide the experience needed for your mobility program and employees.

As pandemic-era restrictions have lifted, there is little doubt that 2022 has been an exciting, return-to-almost-normal year for the world of global mobility. Companies are embracing this new normal, and employees are increasingly on the move as mobile work picks up momentum and businesses resume corporate travel. In fact, according to our Future of Mobility Survey conducted earlier this year, over 95% of companies have some sort of mobile workforce—be it remote workers, hybrid workers, commuters, or business travelers. And with this uptick in mobile workforces comes an increase in tax and compliance risks that companies must consider.

To keep your mobility program running smoothly, our team of experts have created an abundance of mobility tax resources for your use. Here are the top 10 most popular resources from 2022 to date. Whether you have an established mobility program, are considering new international growth, or have seen an uptick in your remote workforce, there’s a resource in this list for you.

When it comes to payroll reporting and withholding for equity compensation, companies don't always realize they may be non-compliant if they have a mobile workforce. These companies may be unaware of the rules in the various jurisdictions their employees have worked, and they may not have processes in place to allow for the tracking of employees. For these reasons, the payroll reporting and withholding, related to equity income, may be handled as if the individual had only worked in one location. However, this approach is often not appropriate for mobile employees working in multiple locations since reporting and withholding rules can vary for each jurisdiction.

In 2020, a leading e-commerce business began receiving remote work requests from employees on a regular basis. The company quickly realized they didn’t have appropriate policies, processes, or bandwidth in place to handle the requests. Unsure of where to start, they reached out to GTN for assistance. GTN worked alongside the company to build a global remote work policy and automated approval process that not only ensured employee and employer tax compliance, but also maintained a strong company culture and positive employee experience.

For many companies, the new workforce norm has shifted to virtual and remote employees. However, for several businesses, there remains a need to have employees working in-person on multiple projects across the country or around the world. Business travel, while still not up to pre-pandemic levels, is making its way back as a standard way of working.

While typical mobile workforce structures such as permanent and long-term assignments are generally managed through a defined HR or mobility function, management of short-term business travel tends to be less defined. Yet, understanding and actively managing the tax risks of short-term business travelers can greatly reduce costs and a variety of risks for both your organization and business travelers. Therefore, developing a structure to oversee this area is imperative.