Working remotely has never been more popular and possible than now. Following the Covid-19 pandemic, many businesses changed their employment models to allow for less foot traffic to their office buildings. While this allowed for social distancing laws to be implemented without affecting productivity, it also meant that employees could work from wherever they liked. If your business has become more aware of the opportunity of making use of a global workforce, then this article is for you…
Appointing staffers from various parts of the world is advantageous for a number of reasons that include the fact that highly skilled staff from different nations may cost less than locals yet bring a different dimension to the table in your industry. The exchange rate between stronger to weaker currencies may also be a factor that your business would benefit from.
While it may sound like a no-brainer if your business can save on overheads, there are a number of regulations you would need to consider before jumping in. These include tax, social security, and other compliance regulations. Your business would also be at risk for productivity issues if you do not have the correct systems to monitor a global workforce.
Introducing Topia Compass software
Topia Compass software aggregates location information to determine various employee-related information including the amount of time employees spend in different jurisdictions. This would mean that staffers based in nations other than where your business is incorporated, would have their location automatically tracked to ensure accurate tax compliance with local and international regulations.
Topia Compass is designed to minimize both business and tax risks as well as to protect businesses and employees from audits, fines, and painful compliance breaches.
The technology makes use of behind-the-scene tracking to manage your distributed workforce and notify you of risk in the event of an employee reaching the travel threshold within a state and more.
With the Topia Compass dashboard, you’ll also be able to:
- Monitor your global employee footprint and track working days in and out of city or local/country jurisdiction to ensure compliance
- Get warning alerts when your staff approaches thresholds
- Customize rules and alerts within the software to reflect your company’s risk tolerance
- Easily extract relevant data to calculate non-resident payroll withholding apportionment across US state or internationally
- Manage Permanent Establishment risk globally by getting early visibility into which employees are performing work that may create nexus.
- Automatically identify trips that may require compliance documentation or create tax, social security, and labor law risks before your employees travel.
- Easily access reliable data in the event of an audit
Tax Compliance for your Global Workforce
Keeping track of your employees’ time across states is imperative to submitting accurate tax returns. Employing a global workforce does not come without responsibility. However, once you have set this side of your business up correctly you can enjoy a multitude of benefits. Unreliable data can put you at risk of investigation and multistate tax penalties.
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This blog article does not provide legal, accounting, tax advice, or other professional services. It reflects current or proposed tax rules at the time of writing and does not update older posts for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. This website does not provide all-inclusive information, and you should not rely on it as such.
