As we look back on 2024, the global mobility industry experienced many changes, including an increase in countries implementing digital nomad visas, updates to tax treaties addressing cross-border employment complexities, and enhanced scrutiny on compliance worldwide. Additionally, technology advancements streamlined reporting processes, and organizations placed a greater emphasis on supporting their remote workforce with tailored benefits.
To help you chart a course through these intricacies, we’ve assembled The Top 10 Essential Stops in Navigating Mobility Tax. Think of this as a roadmap to essential insights and strategies from 2024—each stop along the way addressing a critical aspect of mobility tax. From tax compliance for “work anywhere” employees to managing digital nomad visas, these insights will help you create a well-informed mobility program. Let’s explore each stop and prepare for a smooth journey ahead.
Stop 1: Domestic Tax Issues to Consider for Work Anywhere Employees
By 2025, an estimated 32.6 million Americans are expected to be working remotely, representing approximately 22% of the workforce. The rise of “work anywhere” arrangements has transformed how and where people conduct their work, making it crucial to understand the tax implications of these arrangements.
This article outlines crucial steps to manage and address the tax compliance intricacies for your remote workers. By examining all aspects of work anywhere employees, companies can help to ensure compliance with tax regulations across multiple locations where their employees are working.
Stop 2: Crafting Effective Payroll Solutions for a Global Workforce
The complexities of managing a global workforce extend far beyond cultural differences and time zones. In fact, one of the most intricate challenges facing multinational companies is the nuanced task of international payroll administration.
Understanding the various payroll delivery methods can significantly impact compliance, employee satisfaction, and overall operational efficiency. Our resource breaks down the three primary methods for managing payroll for globally mobile employees: Home country payroll, Host country payroll, and split payroll.
Learn the advantages and potential challenges associated with each approach.
Stop 3: 10 Reasons to Create a Global Mobility Program for Your Company
Creating a global mobility program is a win-win for companies and their mobile employees. Here are some key reasons why:
- Seamless talent deployment: Quickly position the right talent in emerging markets, enhancing speed to market.
- Cost control: Proper planning can significantly reduce expenses related to assignments, avoiding unexpected tax burdens.
- Employee experience: Provide robust support to employees and their families, ensuring smooth relocations and successful assignments.
Read the full article to explore more benefits to creating a global mobility program for your company.
Stop 4: Your Roadmap to Ensuring Mobile Equity Compliance
Navigating the complexities of equity-based compensation for a mobile workforce can be a daunting challenge for companies. When employees relocate—whether domestically or internationally—they often create tax withholding and reporting obligations that can go unaddressed due to a lack of resources or technology.
Download our Mobile Equity Compliance Roadmap to gain insights into evaluating compliance risks, implementing effective solutions, and communicating effectively with employees about their tax obligations.
Stop 5: Staying Ahead in Global Mobility: Summer Tax Webinar Series
Over the summer, AIRINC and GTN joined forces to deliver an insightful three-part webinar series. The series addressed critical topics including tax support for inbound employees to the US, the intricacies of mobility taxation in the United Kingdom, and the intersection of mobility tax and equity compensation.
Download and watch all three sessions to stay informed in the dynamic world of global mobility.
Stop 6: DIY Expats – Tax Support for Off Program Moves
More employees are taking their relocation plans into their own hands, moving internationally with little to no company support. These self-initiated relocations, or “off-program” moves, bring a host of unique tax challenges that can surprise both employees and employers.
As companies reduce their tax support for these moves, employees must navigate a complex web of international tax rules, from unexpected capital gains tax to intricate treaty provisions.
Curious about how these moves can impact your finances or your company’s relocation strategy? This article breaks down the tax implications and offers practical strategies to mitigate risks and support employees effectively.
Stop 7: Understanding the Tax Risks of Business Travelers
Did you know that even a short business trip lasting just a single day can potentially trigger tax compliance requirements in the visited jurisdiction? Failure to address these requirements can expose the company and its business travelers to financial risks, penalties, and potential legal ramifications.
To help you prepare for the tax implications of business travel, we’ve compiled answers to the most frequently asked questions about the associated tax risks.
Stop 8: Mobility Program Evaluation Checklist: Success Through Strategic Planning
Discover when external vendors can enhance your global mobility program, using our checklist. This resource will help you decide which external vendors might be the key to unlocking the full potential of your global workforce along with tasks to consider at each stage of a global assignment.
Download your copy of our checklist to help you:
- Navigate the questions you need to answer before an assignment begins
- Walk through considerations at each step of an international assignment
- Determine when you should bring on an outside vendor to help
Stop 9: Understanding the Tax Considerations for Digital Nomad Visas
As remote work becomes increasingly popular, many countries now offer digital nomad visas, allowing individuals to live and work abroad. While these visas facilitate international mobility, they come with complex tax and social security considerations. Here’s a comprehensive guide for HR and mobility managers to help you navigate these challenges.
In this article you’ll discover:
- Which countries offer digital nomad visas and their requirements
- The impact of tax treaties and visa rules on your taxes
- The potential risks of creating a permanent establishment abroad
Stop 10: IRC Section 83(b) Considerations for Mobile Employees
If you’re an equity plan program manager, you’ve likely heard of an 83(b) election (“Election to include in Gross Income in Year of Transfer”). However, its application and benefits are often misunderstood, leading to missed opportunities.
Section 83 of the Internal Revenue Code (IRC) outlines tax rules for transfers of restricted property, such as equity or stock. These rules clarify when employees recognize income from property transfers, when taxable compensation occurs, and the amount of that compensation.
Given the complexity and potential risks, it is critical to have a full understanding of the IRC rules and to establish appropriate process and procedures.
Detours to enhance your experience
Here are some bonus resources to enrich your journey. These valuable tools and insights are designed to provide additional support and information, ensuring you’re well-equipped to tackle any challenge along the way.
FAQ Guide to Compensation Collection & Reporting for International Assignment Program Administrators
US Taxation at a Glance: Important US Tax Information for Expatriates and Foreign Nationals
Whether you are new to the world of mobility tax, or an experienced mobility expert, the GTN blog is your resource center packed with informative news, notes, and articles to keep you up to date with trends in the mobility tax space. Subscribe to our blog to receive strategies on simplifying your mobility program and ensuring your company remains compliant.
