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Global Payroll Compliance and Accuracy
Ensuring compliance with a country's payroll reporting and withholding regulations, along with accurately managing the evolving intricacies of international relocation compensation, is crucial. While this can be intimidating, especially for those new to corporate global mobility, it doesn't have to be.
As global payroll operations for assignees (employees who work outside their home country) have become increasingly complex, global companies are placing increased importance on having effective compensation/payroll operations.
Tax authorities around the world have sought to increase revenue through additional taxation and more stringent enforcement of wage and tax reporting requirements, according to Deloitte.
“The market is experiencing a spike in payroll audit activity and reputational risk…Organizations and their mobile workforce are becoming increasingly visible to revenue authorities who require strict compliance with payroll reporting requirements, thereby creating challenges for internal functions such as Mobility, Tax, Payroll and Finance,” Deloitte reported.
Of surveyed companies, 67 percent now have a formalized payroll strategy in place according to an EY Global Payroll Survey. EY also found organizations with formal payroll strategies have a more efficient payroll operation: “Simply stated, organizations with formal and documented payroll strategies built a more efficient payroll operation than those without a formal policy.”
Tailored Global Compensation Solutions
NEI streamlines payroll reporting with tax partners for clients, providing global compensation accumulation and reporting in-house. We further coordinate with each client’s payroll and tax partner to ensure all details are accurately captured. This benefits our clients through:
- Less work for client teams, freeing up time for other core responsibilities
- Potentially lower costs with the tax partner, as they can easily have all the details captured for filing without spending billable time gathering information or seeking data clarifications
Including the identified tax firm as part of our implementation / transition process for new clients creates a clear system and establishes expectations for required reporting formats, timing of scheduled reports, and year-end reports.
Tailoring procedures to client-specific payroll and accounting timelines directly benefits companies. We engage client global payroll departments to transmit data and discuss process / timing needs in order to coordinate filings with each client’s tax partner.
NEI can also work in conjunction with a company’s tax firm if they participate in the local calculations. If tax preparation services are outside of policy, we work within a client's designated parameters to determine appropriate timing, format, and information for payroll contacts.
We Work with Experts, So You Don’t Have To
NEI manages global compensation of international assignments holistically and in conjunction with compensation experts to obtain approved allowances and differentials for each individual employee.
Doing so allows us to provide compensation information to each client’s payroll and global tax firm to ensure both have the data needed for making payments and properly reporting total employee income. As with all services, NEI can work with either our partners or client-preferred partners to meet each client’s unique needs.
If a company expands into a new country and lacks a local payroll system, which may be mandated by local law, NEI can facilitate the coordination of payroll services in specific countries. This is managed through our accounting service partners, renowned for their extensive experience in handling international payroll and accounting systems. They provide a comprehensive suite of cross-border services, including setup, payroll management, accounting, tax compliance, and advisory services. These services are tailored to meet the individualized needs as specified by NEI.
Stress Free Support
NEI works closely with each client and their tax firm to report payments made to or on behalf of assignees throughout the year. We offer comprehensive support so that clients’ global compensation compliance requirements are met in a timely manner. Additionally, we will review programs and suggest improvements where necessary.
To learn more on how NEI can assist with compliance regarding Global Compensation, please contact your NEI representative or Michelle Moore, CPA, MPA, CGMA, Chief Global Mobility Officer.
The text above is provided for informational purposes only. Please consult your tax, legal, immigration or accounting advisors before making any decisions or transactions.
Global Payroll Compliance and Accuracy
Ensuring compliance with a country's payroll reporting and withholding regulations, along with accurately managing the evolving intricacies of international relocation compensation, is crucial. While this can be intimidating, especially for those new to corporate global mobility, it doesn't have to be.
As global payroll operations for assignees (employees who work outside their home country) have become increasingly complex, global companies are placing increased importance on having effective compensation/payroll operations.
Tax authorities around the world have sought to increase revenue through additional taxation and more stringent enforcement of wage and tax reporting requirements, according to Deloitte.
“The market is experiencing a spike in payroll audit activity and reputational risk…Organizations and their mobile workforce are becoming increasingly visible to revenue authorities who require strict compliance with payroll reporting requirements, thereby creating challenges for internal functions such as Mobility, Tax, Payroll and Finance,” Deloitte reported.
Of surveyed companies, 67 percent now have a formalized payroll strategy in place according to an EY Global Payroll Survey. EY also found organizations with formal payroll strategies have a more efficient payroll operation: “Simply stated, organizations with formal and documented payroll strategies built a more efficient payroll operation than those without a formal policy.”
Tailored Global Compensation Solutions
NEI streamlines payroll reporting with tax partners for clients, providing global compensation accumulation and reporting in-house. We further coordinate with each client’s payroll and tax partner to ensure all details are accurately captured. This benefits our clients through:
- Less work for client teams, freeing up time for other core responsibilities
- Potentially lower costs with the tax partner, as they can easily have all the details captured for filing without spending billable time gathering information or seeking data clarifications
Including the identified tax firm as part of our implementation / transition process for new clients creates a clear system and establishes expectations for required reporting formats, timing of scheduled reports, and year-end reports.
Tailoring procedures to client-specific payroll and accounting timelines directly benefits companies. We engage client global payroll departments to transmit data and discuss process / timing needs in order to coordinate filings with each client’s tax partner.
NEI can also work in conjunction with a company’s tax firm if they participate in the local calculations. If tax preparation services are outside of policy, we work within a client's designated parameters to determine appropriate timing, format, and information for payroll contacts.
We Work with Experts, So You Don’t Have To
NEI manages global compensation of international assignments holistically and in conjunction with compensation experts to obtain approved allowances and differentials for each individual employee.
Doing so allows us to provide compensation information to each client’s payroll and global tax firm to ensure both have the data needed for making payments and properly reporting total employee income. As with all services, NEI can work with either our partners or client-preferred partners to meet each client’s unique needs.
If a company expands into a new country and lacks a local payroll system, which may be mandated by local law, NEI can facilitate the coordination of payroll services in specific countries. This is managed through our accounting service partners, renowned for their extensive experience in handling international payroll and accounting systems. They provide a comprehensive suite of cross-border services, including setup, payroll management, accounting, tax compliance, and advisory services. These services are tailored to meet the individualized needs as specified by NEI.
Stress Free Support
NEI works closely with each client and their tax firm to report payments made to or on behalf of assignees throughout the year. We offer comprehensive support so that clients’ global compensation compliance requirements are met in a timely manner. Additionally, we will review programs and suggest improvements where necessary.
To learn more on how NEI can assist with compliance regarding Global Compensation, please contact your NEI representative or Michelle Moore, CPA, MPA, CGMA, Chief Global Mobility Officer.
The text above is provided for informational purposes only. Please consult your tax, legal, immigration or accounting advisors before making any decisions or transactions.
