Global Employment Tax
Overview
In recent years there has been an increase in the complexity of employment taxes and payroll functions for businesses operating globally. It is now more common for a single service centre to encompass the HR, Payroll and Finance functions on a global or regional basis, making employment taxes compliance in any particular jurisdiction increasingly difficult to track and monitor. Deloitte is Global Employment Tax team provides advice to organisations helping them to improve compliance, address risk and manage cost and tax issues at a global level.
Issues and trends
- Cost control - cost reduction and tax optimisation are high on the agenda of many businesses and employment taxes and related costs can be some of the most material costs to an organisation. Businesses are now thinking globally to achieve larger economies of scale and world-wide efficiencies.
- Outsourcing of payroll - businesses increasingly outsource payroll, rather than dealing with it in house. Employers must ensure that the staff operating their payroll externally and those managing the process internally, possess the required skills and expertise; cost cannot be the only factor.
- Changes in demographic - it has become common practice for payrolls to include internationally mobile employees which presents varying complexities. In addition, it is common that one individual in a business may be responsible for several or all overseas payrolls, making the task of identifying and managing compliance highly complex.
- Complex remuneration - the change in typical remuneration packages means that employers regularly offer equity awards, deferred cash and complex termination packages. This combined with an often itinerant demographic means those responsible for employment taxes often need to know the impact of a wide range of remuneration offerings in a wide range of jurisdictions.
- External environment - legislative developments and increasingly penal cross-border tax authorities contribute to the challenges that the in house employment taxes function of global businesses face.
Our services/solutions
Deloitte offers a wide range of global employment taxes consulting services which can assist businesses to achieve high compliance levels, manage employment tax risk and costs and maintain an effective working relationship with local tax authorities. Deloitte’s Global Employment Tax team comprises a globally co-ordinated network of specialists with first-hand experience in advising large multi-national organisations across a breadth of issues. Our services include:
Payroll Offerings
Deloitte can provide a range of compliance and tax related services, both consulting and operational. We can assist business over the entire lifecycle of payroll and tax compliance, providing a complete end-to-end service.
Risk Reviews
Deloitte can determine global employment tax compliance risks, support you in taking remedial action on a global or local basis as necessary, and negotiate with tax authorities to settle liabilities in relevant local jurisdictions.
Reward Offerings
Deloitte can provide a wide range of services around reviewing and structuring of global reward packages to ensure they are operating efficiently, maximising on tax savings and remain attractive to employees.
Technology solutions
Compliance Countdown is a web-based tool that has been developed to help business manage and monitor their compliance requirements across multiple jurisdictions, without disrupting existing processes and service provider arrangements.
GA Incentives is a web-based global tool that manages multi-jurisdictional tax and social security withholding calculations on equity award transactions. The tool supports most types of equity plans, and provides automated calculations for over 90 countries in real-time.
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