September 30, 2020
6 Things to Consider When Forming a “Work from Anywhere” HR Policy
You may have seen a few articles, webinars, surveys, and other commentaries lately on the concept of ‘Work from Anywhere’. ‘Work from Anywhere’ arrangements give employees the flexibility to choose where they live and work. Employees may also decide how many days a week they spend in the office under this policy. While this human resources policy has been trending up over the past several years, the COVID-19 pandemic has further compelled companies to consider forming a ‘Work from Anywhere’ policy.
During shelter-in-place orders, employees may be telecommuting in places they do not typically live and work. While this type of policy may benefit both the company and employee, it also triggers new potential compliance issues. This is due to the unique tax laws and reporting requirements in each location. As a result, these employees can prompt a host of tax issues and payroll obligations.
If you work in Human Resources or Finance, you may have heard about this. For those that haven’t- many countries initially issued some relief for companies and individuals during the first stages of the COVID-19 pandemic. However, these exceptions were for a limited time and individuals are now surpassing original exceptions. When forming your ‘Work from Anywhere’ policy we have compiled the following things to consider.
- Cost. Implementing a ‘Work from Anywhere’ policy can give employees the flexibility to work when and where they are most productive. But there may be a cost increase in administrative, payroll obligations, and tax implications. Decide what states/countries your company can comply with vs. those which might to too great of an expense.
- Location, location, location. By understanding where the company operates in relation to where employees are living and working, you can determine and compare your possible corporate and payroll obligations.
- Relocation timing. It is best to monitor or track when your employee moved locations or is planning to move locations.
- Current state of affairs. For this consideration, you will need to review your company’s current stage and determine whether a work location has already triggered corporate tax and payroll responsibilities.
- Reporting. Ensure employee income is reported accurately and tax withholdings are based on where the employee is working, not just where they are a tax resident.
- Employee knowledge. Include employees in your ‘Work from Anywhere’ policy by educating them on filing requirements and residency rules for each location. Provide tax assistance, if necessary.
By utilizing these 6 considerations when you are forming your ‘Work from Anywhere’ HR policy, you can help your company avoid unexpected penalties and increased tax costs.
If you need assistance in forming your unique ‘Work from Anywhere’ policy, contact us at email@example.com to schedule a complimentary consultation. We can help with a full range of services and solutions to assist companies develop ‘Work from Anywhere’ policies.
Erika Beddow, EA
Erika is the Business Development Manager at GLOMOTAX and joined the team in 2016. She has more than 20 years of experience in public accounting with more than 10 years specializing in global mobility. Erika shares a unique experience with many of our clients as she has lived in many different places across the US and abroad. She enjoys helping people navigate complex tax situations while mitigating risks, identifying opportunities, and building strong partnerships.
Erika is a member of the Worldwide ERC and the Greater Washington Employee Relocation Council.
We’re Here For You
For 15 years, Global Mobility Tax, has been assisting startups and early growth companies to navigate the tax implications of a global workforce. We provide strategy, consulting, and tax services to organizations and individuals that relocate internationally.
Contact us for any of your global mobility questions or concerns.