GTN Mobility Tax Blog

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.

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.

As the future of work continues to evolve, providing a “positive employee experience” is top of mind for companies. While some organizations have gone back to in-office working arrangements, many have retained a full or partial remote workforce culture. These businesses see the provision of a flexible workplace as critical to not only retaining key employees, but also in recruiting top talent to fill essential job duties. And while this incentive is a benefit for the employee and employer, there are important duty of care responsibilities that need to be considered when you have a remote workforce.

With today’s ability to work from anywhere, understanding and staying on top of the reporting and ongoing US filing requirements can be difficult. However, for employees working outside of their typical Home location, not only understanding these requirements but being diligent in adhering to them is especially important. Taxpayers are often surprised by the tax filing obligations and are often not prepared to handle the detailed reporting requirements. For US citizens, permanent residents working outside of the US, and citizens of other countries who become tax residents of the US, there is a specific annual filing requirement related to any non-US financial accounts held.

Imagine this: you are sitting at your desk working to finalize the weekly status update. In walks the president of the company and says, “In order to increase our business, we are expanding overseas. I would like to send Jane Smith to Germany for three years. How soon can you make this happen?”

I’ll bet the questions that race through your mind are the same as every other HR manager tasked with sending employees internationally for the first time:

• Where do I start?
• What do I need to consider?
• What processes need to be in place?

Our annual Beards and Braids for Busy Season (BBFBS) begins now! In the campaign’s ninth year, GTN is once again partnering with Move For Hunger, a national non-profit organization that has created a sustainable way to reduce food waste and fight hunger. Our 2022 BBFBS campaign strives to make an impact on the growing hunger crisis as millions of Americans face food insecurity every day. This will be GTN’s second year partnering with Move For Hunger and our goal is to surpass last year. With your help in 2021, the BBFBS campaign was among Move For Hunger's top 10 fundraisers providing 16,277 meals to those in need! We are very excited about this year’s campaign and the continued role we can play in helping the Move For Hunger cause.