GTN Mobility Tax Blog

This article was originally published in HR Daily Advisor.

Taxes can be intimidating, time-consuming, and confusing for any employee. But tax complexities shoot through the roof for international employees, business travelers, and remote workers.

Here are the reasons taxes are so tricky for mobile and remote employees, along with the secrets to communicating tax matters effectively.

In the face of revenue shortfalls, the Israeli tax authority has recently focused its efforts to crack down on tax evasion by going after Israelis who have left the country without properly breaking tax residency. Although these rules and collection efforts are not new, this new compliance initiative highlights the critical importance for Israeli residents and their employers to understand the tax implications of relocating outside of Israel. Through education and proactive tax planning, unexpected scrutiny and surprise tax bills can be avoided.

In the ever-evolving landscape of global mobility, the traditional landscape of long-term assignments has given way to a rising prevalence of permanent transferees. However, many companies have not established a formal mobility tax program for permanent transferees. Instead, a typical approach is to simply provide a cash stipend to the permanent transferee with the suggestion to use the funds to find a local tax provider to help them with their tax matters in their new country.

This article was originally published in Spiceworks.

Starting in May 2024, the US Securities and Exchange Commission’s new, shorter settlement cycle kicks in—and it could leave businesses scrambling. HR, payroll, tax, and equity teams will have one fewer day to deliver shares and manage the related equity compensation tax implications. Plus, when the settlement window is shortened, it will focus more on the complexity of managing a mobile workforce. 

However, these new settlement cycles could serve as the wake-up call businesses need to jump-start much-needed technology upgrades. Why is the SEC’s rule so important for companies that offer equity compensation, and how can technology protect against tax violations, lost compensation, and burnout in this new environment? 

As businesses look to capitalize on international opportunities and establish a global presence, the question of how to optimize tax planning across multiple jurisdictions becomes paramount.

If we look back to our article that provided three key steps for global expansion success, we shared the actions required to best administer and support a globally mobile workforce. These steps ensure effective tax planning for individuals critical to the global success of the company. A happy, growing workforce begets a healthy culture and a successful business. And companies growing globally also want to ensure happy, growing earnings. So, once the mobile workforce planning is in place, the next critical question arises: How do I ensure effective tax planning for my global business?

Now that the intensity of another US tax busy 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 busy 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.