As if risk minimization and tax compliance were not challenging enough previously, the increase in remote workers — promoted by the pandemic — has many tax and mobility professionals worried about the increased potential for tax violations in the future. Tracking employees and properly adhering to tax requirements has always been a major focus, and mobility teams are more valuable than ever to companies that now have more employees working from so many more locations.
In this Accounting Today article, GTN's Jen Stein puts forth the pros and cons of remote work, paying particularly close attention to possible tax and compliance issues from the increase in remote workers for companies. With regard to the cons, she speaks to the fact that duty of care might suffer, tax violations may occur, and that certain departments may be inexperienced and overwhelmed.
But she doesn't leave you hanging with only the potential pitfalls and goes on to offer some advice related to being proactive and adhering to best practices. To avoid being negatively impacted by your increased remote workforce, her three best practices are:
- Make sure you know where they are — track them!
- Define these employees and where it is ok and where it is not. This likely means resetting (or creating) remote work and travel policies.
- Tap into technology to help make the above easier and more efficient.
For more related posts on this topic, try:
- Remote work's impact on global mobility post-pandemic
- Working from (childhood) home: The new stealth employee
- Working from anywhere may sound good to employees, but there could be tax consequences
While tax compliance has never been simple, it could be a little more complicated, and because of the increased numbers of remote workers, maybe even riskier.
It’s time for tax and mobility professionals to brace for change. The pandemic has accelerated remote workforce trends, and working from anywhere is becoming a baked-in feature at companies. For accounting offices and mobility leaders, the realities of managing a remote workforce, both positive and negative, are setting in. To stay compliant and avoid tax violations, it’s time for tax and mobility professionals to step back and examine the pros and cons of the remote work landscape. Fortunately, with those pros and cons front and center, it’s possible to establish a plan that will help companies navigate the tax and compliance risks popping up from a massive uptick in remote work.