GTN Mobility Tax Blog

Each year, GTN hosts a firm-wide annual conference where all US employees as well as certain affiliated foreign offices from around the world, come together for three days to unite as a team and celebrate our accomplishments as a firm. What started as business-focused training in 2008 has evolved into the way we celebrate the past year, strengthen relationships, and give back to the community.

'Tis the season of giving and this year GTN is spreading joy by supporting the Toys for Tots mission to bring toys to less fortunate children at Christmas.

US social security tax is withheld from employees’ wages under the Federal Insurance Contributions Act (FICA), which provides funding for the Social Security and Medicare programs. The goal of the Social Security program is to offer retirement, disability, and survivor’s benefits, whereas Medicare provides health insurance. 

Although many companies believe they have a good process in place to address the withholding of these taxes for their US-based employees that work in the US, it is critical that they review and understand the rules for their internationally mobile population. Through proper review and planning, companies can mitigate risks and may also achieve substantial cost savings.

All US citizens and permanent residents must file federal income tax returns if they meet the IRS filing threshold. The amount of this threshold will vary depending on factors such as age, filing status, and type of income (i.e., income from employment or self-employment). For example, a single individual under the age of 65 would be required to file a 2019 US federal tax return if their gross income exceeded $12,200. If the earnings came from self-employment, this same person would need to file a US federal tax return if their net earnings exceeded $400.

It is not uncommon for businesses expanding their operations across international borders to discover that moving employees abroad has created tax issues—and unfortunately, they often don’t discover this until they receive notice that overseas employees are noncompliant in either their Home or Host country. 

Keeping up with regulations around global taxes, travel, and expatriate programs can be difficult, especially when juggling multiple other priorities. Our team of industry experts continually creates informative resources to help you navigate the tax landscape.