The Covid-19 pandemic of 2020 has made a huge impact on the world’s economy, and global mobility is no exception. Employees on short or long-term assignments are having their assignments extended, temporarily returning home, or going to another location.
As companies focus on duty of care, tax assistance is one of the areas in which they are supporting their employees. However, in addition to tax assistance and assignment benefits, additional costs may be considered.
1) Cost of utilities and home office equipment
2) Exception payments (i.e. hardship allowance, extended housing payments)
3) Changes in residency status at host location due to assignment extension
4) Payments made by company to or on behalf of spouse and/or dependents (i.e. meals, housing and travel costs)
From a U.S. standpoint, IRC Section 139 provides some tax relief. It is encouraged that each employer and employee contact their tax provider to receive clarification on the rules and relief that may vary by country and specific circumstance. As the current pandemic is considered a “qualified disaster” many countries already have guidance in place for private entities to provide tax free relief payments to individuals.
Regardless of the tax and payroll reporting complexities organizations face today, Servicengine can provide support through its global mobility software. Cost Projections, Cost Analysis, Budgeting and Analytics, Expense Management and Payroll Processing and Reporting cover all the bases. Give us a call today to find out more!