GTN Mobility Tax Blog

For the sixth year in a row, GTN is collecting toy donations for Toys For Tots for the 2023 holiday season! 

Communities throughout the US continue to face financial struggles and during the holiday season, families can feel the weight of this burden even more. To help our neighbors, we can alleviate some of this stress by sharing resources where we’re able. Together, we can support the Toys For Tots mission and ensure families across the US can provide their children with the joy of holiday gifts. 

In the current global business landscape, it has become increasingly common for companies to offer long-term incentives to their employees as a means of attracting, retaining, and rewarding them. However, while such incentives, including equity income, can be highly effective, they also come with inherent risks that require careful management and oversight.

Are you satisfied with the level of responsiveness from your current global mobility tax provider? Do you have access to a team of seasoned professionals who are well-versed in the latest mobility tax trends? Are you receiving clear and actionable advice in a timely manner? If you answered "no" to any of these questions, it may be time to consider switching to a new mobility tax provider.

Picture this.

In order to attract and retain the best talent, your company has made the decision to continue to allow employees to work from home indefinitely.

To you, the HR Manager, “home” means employees must work from the address on their paycheck, but to the employee, “home” just means they can work remotely from anywhere they choose. And some have chosen to work in another state while others have chosen to work in another country.

Your mobility tax provider has informed you that when your remote workers work outside of their Home jurisdiction, they are potentially creating reporting and withholding tax risks and compliance requirements for both themselves and the company. You now realize you need to know exactly where everyone is working so you can begin to address any potential compliance risks.

When a mobile employee relocates across borders, whether internationally or domestically within the US, they soon discover that their tax situation has become far more complex as a result of the move. If that employee is moving from a low-tax location to a high-tax one, they could potentially face a major increase in tax liability. Additionally, they may also encounter tax issues related to the sale or rental of their home, moving expenses for state reporting purposes, state residency issues, and a number of other issues they may not be prepared to handle on their own.

Globalization has transformed employee mobility, expanding it beyond the traditional short- or long-term assignments. Today, a mobile workforce encompasses a range of arrangements, including remote and hybrid work options, as well as short-term business travel. This shift has brought about greater flexibility in terms of how and where employees work, enabling organizations to tap into a wider pool of talent and operate more efficiently in a globalized world. And when employees have greater flexibility as to how and where they work, companies and employees alike must navigate complex reporting and filing requirements to avoid serious financial, legal, and reputational repercussions.