GTN Mobility Tax Blog

The IRS recently made important changes to the Child Tax Credit which will enable many families to receive advance payments of the credit starting July 2021. Here is what you need to know about the 2021 Child Tax Credit and its impact on your mobility program.

By now, you may have heard or read that in 2019, the Department of Finance Canada tabled legislation which related to limiting the preferential stock option treatment enjoyed by employees in Canada. Now in 2021, with updated draft legislation and inclusion with the 2021 Federal Budget, Bill C-30 could significantly impact many employees who receive stock options granted to them on or after July 1, 2021.

As the world of cross-border business returns and business travel begins again, you are likely thinking about your mobility program and its ability to scale with your organization’s global goals. And as your mobile workforce grows—whether it consists of remote workers, business travelers, or traditional assignments and transfers—you must consider the complications and major mobility tax issues that will surface as business travel increases.

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.

Just when you may have thought cross-border taxation was getting simpler, the Canada Revenue Agency (CRA) recently put forward Technical Interpretation (CRA Views 2019-0832211I7) to provide further guidance on the concept of sourcing a cross-border employee’s compensation when in receipt of Restricted Stock Unit (RSU) benefits. What the CRA has brought forward is a new methodology of sourcing and is referred to as the “Hybrid Methodology.” They have stated this methodology will be their approach as of the 2021 tax year.

Without a doubt, COVID-19 has changed the way we live and work, especially within the global mobility industry. As vaccines finally make their way around the globe, organizations are realizing the traditional idea of having employees in the office every day may not be the way of the future. Programs and policies need to adapt to a new way of managing a remote workforce.