If your organization sends employees abroad, you need to understand what a shadow payroll is and how it works. The basic concept is relatively simple, and shadow payrolls are great for lowering employer and employee risks. Properly establishing and maintaining a shadow payroll is, however, far from simple. There are countless items to consider, such as whether to implement a tax protection or tax equalization policy, how to calculate hypothetical taxes, the best way to send money across borders and much more.
If you’re a business looking to expand internationally, you’ll need to comply with a host of unfamiliar regulations, from immigration rules to permanent establishment laws to employer obligations. You’ll also face myriad new challenges and unfamiliar requirements specifically related to finance and accounting. Knowing country-specific rules and regulations can help you develop a sound accounting strategy to maximize revenue, manage your tax liability and reduce business risk. Understanding best practices abroad can help you establish a solid accounting framework and reporting structure and avoid penalties and fines.
Virtually all multinationals are aware of Europe’s General Data Protection Regulation (GDPR), a sweeping law that has significant ramifications for HR departments. If you employ workers based in Europe, you need to know your GDPR-related obligations in detail to protect yourself from fines and reputational damage. Unfortunately for employers, the GDPR is not the only recent change to Europe’s employment landscape. Multinationals must respond to other ongoing legislative and cultural shifts if they hope to attract and retain talent and in some cases avoid penalties. These changes include those related to Brexit, flexible working hours, six-hour workdays, discrimination protections and more.
If your organization processes the personal data of EU citizens, you need to comply with the EU’s General Data Protection Regulation (GDPR), even if you don’t have a legal presence in an EU country. The GDPR comes into effect on May 25, 2018, and many companies are still scrambling to determine what they need to do to protect themselves from penalties, which can be substantial. This presentation provides information about the key concepts of the GDPR, and some essential policies and procedures you need to implement to lower your risks.
International expansion for young and fast-growing companies is tricky, not least because managing operations in a new country can overwhelm HR, finance and legal teams with administrative burdens.