International Social Security
Sending your employees on an international assignment can create complex international social security issues.
Our experienced international social security team has extensive knowledge of international social taxes, and the impact that they can have on both employer and employee. Deloitte’s network of social security teams operates in 30 countries, which means we are ideally placed to provide you with comprehensive cross border specialist advice.
Issues and trends
New EU Social Security Legislation
The new EU social security legislation coming into effect from 1 May 2010 will have a significant impact on the employers of individuals working across borders. Those employees working regularly in more than one EU state and longer term expatriates will be particularly impacted by the rule changes. It is likely that employer costs, and the requirement to be compliant in all operating locations, will increase as a result.
It is generally perceived that the existing EU regulations are more benign. As such, employers should make every effort to become compliant before they are exposed to the new regulations and any enforcement activity.
New Penalties
From a UK domestic perspective, new PAYE late payment penalties are due to come into effect from the 2010/2011 tax year, affecting employers and contractors. These will be in addition to the tax-geared penalties which can be as high as 100% of the unpaid National Insurance Contributions (NIC) due.
The Deloitte International Social Security team can work with clients to introduce schemes, such as the Modified UK NIC scheme, which will help avoid exposure to this sort of sanction.
To discuss these or any other Social Security issue you may have please contact John Weekes.
Our solutions
- Development of employer risk-management strategies for social taxes;
- Advice and support on the NIC and ISS (International Social Security) aspects of compliance reviews;
- Social Security cost-reduction planning;
- Advice on complex individual social security issues for highly remunerated employees working across borders;
- NIC reclaims for both employer and employee;
- NIC planning in an international context; Social Security Optimisation;
- Policy advice/structuring from a NIC-efficient perspective for both employer and employee;
- Benefits advice.
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