Shadow payroll blog
Inter-company rebilling processes for the costs of international employees are complex. They demand a degree of internal resource and time. How can you collate and recharge costs incurred from various international employee assignments around the world to the appropriate legal entity and cost centre within a reasonable amount of time?
Organisations report international employment costs and the associated taxes – i.e. shadow payroll tax – to relevant authorities in two ways. Initially via payroll, where they report the tax calculated and paid on behalf of their employees; and then through the accounting department…
How do the costs associated with your international employees get recorded in your books? Can you be absolutely sure that all costs have been accounted for correctly and in the right place?
Digital transformation has been a hot topic for well over five years, enveloping every industry and seeping into every corner of the enterprise. While many HR functions are already well advanced in the journey of digital transformation, the global mobility function seems to be the bad pupil of the class.
Can you be sure you’re fully compliant with local employment tax laws, in all the markets you’re operating in? With shadow payroll tax requirements differing across the world, and changing on a continual basis, it’s almost impossible for your internal employees to stay up to speed.
Shadow payroll tax is a fragmented process. How do you track exactly what’s being paid where, by whom – and gain an accurate understanding of what’s happening in your organisation, from an operational perspective?
Employment tax is a major expense for any business involved with international employee assignments. Although it’s a rule of thumb that one-third of total assignment costs is paid in tax, very few organisations actually know exactly what that figure is on their shadow payroll.
International employee assignments are an expensive business. As a general rule of thumb, for whatever you pay in salary, you spend the same again in benefits (housing, school fees, relocation costs, local surcharges and so on), and the same again in tax…