GTN Mobility Tax Blog

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?

COVID-19, current travel restrictions, and government and business shutdowns have certainly made it difficult for many mobile employees to carry out “business as usual.” This can be particularly true for employees that were on a short-term or long-term assignment prior to COVID-19. Because of safety considerations or travel restrictions, two common scenarios that have emerged from the COVID-19 pandemic include:

UPDATED: February 7, 2020 

On January 31, 2020 the UK left the EU and has entered into an 11-month transition period. Now that this departure has taken place, it is a good time to carefully review the impact this will undoubtedly have on employees assigned to the EU.

Before you send an employee off on a new assignment in Canada, there are a few things they could probably use: a warm parka, an introductory guide to ice hockey, and a thorough understanding of Canadian tax law.

For employees working in any country, understanding the tax system is crucial to avoiding unnecessary risks and costs. When it comes to Canada, this starts with determining whether your mobile employee will be considered a Canadian resident or be considered a non-resident business traveler.

Last week we shared information about withholding US social security tax from wages. This week, we want to talk about social security within the European Union (EU), European Economic Area (EEA), and Switzerland. Many of the conversations we have with companies sending business travelers intra-EU involve a deep sigh and a shake of the head. Getting the Posted Worker Directive (PWD) and social security withholding obligations correct when sending an employee from one EU-member state to another is a necessary statutory requirement; yet for most it is an administrative challenge.