Given that relocation- and assignment-related benefits are nearly all considered as taxable income, withholding requirements and company contributions have to be properly coordinated and managed through the payroll function. Although we are well into 2021, most mobility programs are currently putting the final touches on their year-end payroll reporting for 2020. And like everything else related to 2020, some of the issues are unprecedented (I know, I hate me too for using the word!).
Thanks to Eric Loff at GTN, we have a list of the "Top 10 Considerations for 2020 Year-End US Payroll" that is meant to help mobility and payroll teams finalize their U.S. reporting and withholding requirements for their companies' mobile and cross-border employees. Eric shares insights and concerns that should be considered for things like:
- The complexities involved with work from home or work from anywhere situations
- The treatment of disaster relief payments
- Issues around multi-state reporting
- The deferral of payroll tax obligations
- Making sure to use the new form W-4
- Taxation of moving expenses at federal and state levels
- Income inclusion for employer-provided tax preparation services
- Use of fiscal year cut-off for compensation reporting purposes
- Dealing properly with employee repayments
- And, of course, dealing with tax gross-ups through Form W-2c
Dig into the article, and if you are looking for a few additional posts on global mobility and payroll, try one of these:
Here, the hope may be that the usual payroll process will be enough to get the job done efficiently. However, in a year when the dictionary company, Merriam-Webster, has declared “pandemic” as its “Word of the Year” and where use of the word “remote” has increased by 300%, it is probably not surprising that the term “usual” will need further consideration. To assist mobility and payroll teams as they finalize the US reporting and withholding requirements for their organization’s mobile and cross-border employees, this month’s newsletter provides a top 10 list of payroll matters to review at the end of this unprecedented year.