COVID-19 - A Case for Action #1 - Going Home


This is part of a special Global Mobility Tax client alert series - sharing stories and situations where we have provided practical mobility solutions.




April 3, 2020

The COVID-19 global pandemic calls for quick action based on government directives in the interest of public health and safety. In this environment, arriving at practical mobility solutions can be challenging. Here's how Global Mobility Tax has supported mobility programs in recent weeks :

Action #1: Tax Implications and Filing Requirements

Client needed immediate guidance on the tax implications for Employees who had to go back to their home countries due to the Coronavirus issue.

 A group of Interns from Canada, working in the US - quick return to Canada

Action: Move from US withholding to Canadian withholding

Impact: The interns will receive local pay in local currency

Savings: The cost of running a Canadian shadow payroll is avoided. Estimated tax penalties and payroll reporting penalties of up to 15% are avoided.

 
A US employee, needed to return to his home country, Taiwan.

Action: Determined Taiwan reporting and withholding obligations and coordinated with US obligations

Impact: The employee does not feel an impact on take-home pay

Savings: Taxes are paid into proper jurisdiction and estimated tax penalties and payroll reporting penalties of up to 20% are avoided.

 

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