Cross border employees
Tracking, compliance and policy queries
Deloitte offers strategic advisory and compliance services to address complex tax, social security and reporting queries associated with an expanding global workforce; such as in cross border-, business traveller- and remote work situations.
Due to Covid-19 the world has already taken a huge leap in digital transformation and allowing employees to work from home or in some cases in another country.
Working remotely has been proved to work to a very large extent and will most likely be included as a new “standard” in the workforce landscape going forward.
Employers having employees working remotely from another country than where the company is based, needs to be cautious of the legislation around the employment in the country where the employee physically work. For instance, will it be considered a fixed place of business (permanent establishment), is there any tax withholding obligation, how does social security apply, what are the pension levels, are there any specific work environment regulations etc.
Deloitte has the expertise to assist companies in addressing and managing the applicable requirements around remote work. We can assist with all the registrations needed and keep track on what you as an employer need to do on a continuous basis.
In other words, Deloitte can give you the assistance and tools you as an employer need in order to recruit and keep talent all over the world without having to relocate individuals to or from your country of operations.
Business travellers, whether traveling country-to-country or state-to-state, may potentially create compliance risks and exposures. According to surveys, global business travel continues to replace traditional assignments and at the same time authorities have an increased focus in this area.
With complex tax and immigration rules, which can differ in each jurisdiction, defining when an employee triggers a compliance obligation can be a challenge. Areas of concern include individual income tax, social security, immigration and payroll, as well as corporate risk such as permanent establishment. From a Swedish perspective these questions are more current than ever given the Swedish implementation of the Economic Employer concept from 2021-01-01.
Deloitte can help clients determine when and where business travel creates these compliance risks and can automate and streamline this challenging process for employers – either before travel has taken place, or after the fact.