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 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.
Additional factors such as nationality of the distant worker, the place of business of the employer in the country where the employee wishes to work and the country’s tax treaty may also play a role in the establishment. If the worker is a non-US citizen holding an H1B / L visa, the employer should confirm the possible impact of a distance work agreement on the worker’s US immigration status, the effect of such a visa on the validity of the worker’s stay, and several other factors. Cross-border or cross-border distance work agreements can be challenging, but enabling them is an entrepreneurial decision that employers must make.
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 these tips can help you cope with these factors as well as cultural and geographical aspects when working remotely.
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.