Webinar Recap – Global Payroll Challenges & Solutions in an Ever-Changing World

July 2017

How can your business successfully manage payroll for employees sent abroad? 

The number of companies sending employees on assignments abroad has grown steadily over the past 20 years. Many predict that with the growth of talent gaps and the desire for continued global expansion, employee mobility will continue to be a key priority for companies.

With the growth of the mobile workforce, however, comes complex challenges in managing employee payroll. From recording wages, distributing pay, and withholding and remitting the appropriate taxes, to considering the intentions of the assignment setup, a lot goes into making sure each country payroll is not only accurate, but also compliant.

For tips on mitigating risks related to payroll compliance, BDO invites you to listen to Global Payroll Challenges & Solutions in an Ever-changing World, the first in a webinar series  from the firm’s Global Expatriate Services practice, featuring Managing Director Ronii Rizzo and Partner Jessica Otterståal, of BDO Sweden.

In the webinar, you will learn:
  • General payroll reporting and tax withholding/remittance requirements when handling expatriate employees
  • Payroll set-up and registration options including home country, host country, split payroll and shadow payroll
  • Payroll setup and registration best practices and pointers
  • Local considerations: employer designation, assignment duration, visa type, income tax treaties, social tax treaties, currency exchange rates, joiners and leavers
  • Tax policy considerations
  • General payroll forms and payment methods
  • Potential non-compliance penalties
If your company has locations or employees abroad, here are a few important payroll considerations to keep in mind:
  • Use a holistic and multidisciplinary approach to payroll setup. This means involving individuals from immigration, tax, labor and employment, the local office and more in your planning process, and keeping them regularly updated.
  • Address the risk drivers. Which area of payroll compliance is likely to be the biggest issue or result in the highest penalty? Can you address that issue up front to prevent potential non-compliance?
  • Allow proper planning time. Taking a holistic approach means doing planning well before the eleventh hour. Give yourself and your team adequate time to put together a plan to avoid issues once employees are on the ground.
  • Document. Document. Document. As you put together your payroll plan, be diligent in recording your decisions and processes. This will help with any subsequent payroll setup and will prevent you and your colleagues from having to reinvent the wheel.
  • Balance standardization and flexibility. Each country has unique labor laws and payroll reporting and withholding obligations, so there is no “one-size-fits-all” solution. What’s important is to keep all parties involved and aware of the processes you put in place in each location, and to re-examine them often to determine if changes should be made to increase efficiencies or remain compliant.
Stay tuned for additional webinars from BDO’s Global Expatriate Services practice to learn more about managing today’s global workforce.