As the world becomes more closely connected and we continue to break down geographical barriers through the advancement of technology, it’s no surprise that the way people do business is changing. The need to send employees abroad as expatriates has continued to increase every year. Some large multi-national companies view international assignments as a necessity for executives to progress in their careers. Other companies may need to send employees outside the U.S. for a possible expansion into a new market or to simply fill a role in operations outside the country. If your company is considering sending even just one employee outside the U.S., there are several items you may want to consider.
Similar issues arise when an employee who is a citizen of another country is sent to work in the U.S. You must consider the most appropriate visa for the situation. You will also need to determine if the employee remains subject to social taxes in the foreign country or needs to enter the U.S. Social Security system.
The decision to send an employee on an international assignment, whether inbound or outbound, often involves collaboration with your human resources, finance, and payroll teams working closely with tax advisors in both the home and host countries. At DGC, we have significant experience advising businesses that are considering whether to send an employee abroad or to work in the U.S. To learn more about the tax benefits and consequences for assignments like these, contact a member of your DGC client service team or Stacy Tombarello, CPA, MST at 781-937-5397 / firstname.lastname@example.org.