Remote work arrangements continue to go beyond asking workers to work from outside their country of employment and will become even more frequent in the upcoming holiday season. While business leaders are considering a permanent shift to remote work, employees can envision a bold future with more freedom than they ever thought possible.

As a result, longer working hours from home are at risk if workers are not informed by their employer where they work, for example from a second home in another country. Different laws apply depending on where the employee works (see below). Employers should therefore be aware of where their employees work.

Employers should take into account the specific laws in each country, the length of working time that the employee intends to work at each location, and discuss the possibility of international remote working. If your employees work in another country during the pandemic to protect their organization from cross-border tax complications, your organization should evaluate the fiscal impact of cross-border work arrangements. US companies have to report and withhold payroll taxes for their British employees, whether they are based in the US or abroad.

In view of ongoing COVID-related travel restrictions, more and more employers are receiving requests for their employees to work from countries outside the state. Many employers find that their employees work across international borders.

It is not just a question of whether workers can work remotely or perform better. Since greater internet connections and the ability to access work remotely are more fundamental for workers working remotely, employers have more to consider when deciding whether to grant an application. There is also a need to reconsider the factors surrounding staff work and the rules on cross-border data security, which are more complex than the GDPR and apply to all. The complexities of data and network security rules could be better navigated with help from some of the experts in the field, like this it services pennsylvania company that offers overall business IT support too.

The ongoing coronavirus pandemic poses a risk of disruption to international travellers. If a company has a permanent establishment abroad, it can incur significant, time-consuming compliance obligations and unexpected tax burdens. If the company does not have a permanent establishment within a country, it may owe income and sales taxes in that country.

Other factors such as the nationality of the remote worker, the location of the employer’s business in the country where the employee intends to work, and the presence of a tax treaty between the two countries may also influence the establishment of distance work agreements. If the worker holds a non-US citizen status, such as an H1B or L1 visa, it is essential for the employer to assess the potential impact of a remote work arrangement on the worker’s US immigration status. This assessment should encompass considerations regarding the visa’s validity, the worker’s stay, and various other pertinent factors.

Specifically, the L1 Visa in Calgary, AB, and elsewhere — also known as the Intracompany Transferee Visa — caters to employees of multinational companies transferring to a US office, branch, or affiliate of the same company. Employers should carefully evaluate the implications of distance work agreements on employees holding L1 visas, ensuring compliance with immigration regulations and visa terms. While enabling cross-border or cross-jurisdictional distance work arrangements may pose challenges, it reflects an entrepreneurial decision that employers must thoroughly assess to effectively meet the needs of their workforce and business operations.

Employ Global Mobility Experts

You can make use of assignment management software to confirm the nationality and immigration status of employees and understand the arrangements that need to be made for workers working abroad to return safely to the United States. Always remember that a remote worker is a person behind a computer screen so treat them the same as you would treat a staff member personally. It is not easy to work in another country and can be a challenge to manage a successful remote team, but with the help of tools from Fusion Connect or a similar software solutions company, this can be achieved and most of the work can continue to take place seamlessly.

Companies committed to distance working will have better access to some of the best talent in the world. Letting employees work from anywhere in the world makes teams happier and more productive. By allowing team members to work from the country of their choice, employers can provide the kind of work-life balance that modern workers want.