Raise your G-A-M-E (global assignment management expertise) part two: Let's look at tax compliance

About this time last year, we posted, "Raise your G-A-M-E (global assignment management expertise)" on our Trending Topics page.  That piece acknowledged that there are many different subject matter areas of expertise within the global mobility function and provided a wide array of  resources to help increase your knowledge. Well, this is sort of a part two to that, with a special focus on compliance and year-end compensation.

While companies continue to explore ways to leverage the power of combining top talent with business initiatives, global mobility programs continue to work on evaluating the ROI of sending these talented people around the world to accomplish those initiatives and quantify and/or qualify how those experiences translate into value for the organization. 

Global mobility executives know that successful global companies must be able to maintain expatriate assignments as a valuable element within their overall talent management strategy. Identifying the right talent, keeping them engaged, properly evaluating and supporting them, valuing their strengths and experiences upon return and strategically integrating them back into their home locations are just some of the initiatives that are fattening up the "R" when trying to calculate the ROI.  

While many in the global mobility industry have referred to "ROI" as the "Holy Grail" of global mobility, one thing Gareth Davies of Equus points out is that maybe the best place to start is making sure you have a system in place for capturing the "I," which represents the total amount invested in a given assignment.

The accurate and timely details behind a global statement of earnings (GSOE) allow the company a complete understanding of the total spend for each expatriate and allow for proper reporting and tax filings that sit at the heart of a compliant program.  

So you might be asking yourself, "How at risk is my mobility program?" I know that tax and immigration authorities are more able than ever to track mobile employees that are scurrying around the world. Some companies know they have issues because they have incurred tax penalties and fines. Others are simply concerned that they might get hit in the back of their proverbial global mobility heads by unseen and unpredictable issues. 

While Mr. Davies focuses on the technology used in the process, I would say that is just one element in constructing a full scale solution that is accurate, efficient and cost-effective. Supporting accurate and efficient expat comp collection requires strong auditing and reporting that must integrate the right talent and expertise, thorough processes AND great technology!

And really, what option do you have? Failure to file accurate returns, pay overdue employment taxes, file employment tax returns, and/or furnish correct wage and tax statements on a timely basis can result in significant fines. 

While there are are many words that begin with "C-O-M-P", none are sweeter than "C-O-M-Pliant" to the ears of global mobility and payroll managers!