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EXPAND YOUR HORIZONS Make the Right Connections
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EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Dec 27, 2015

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Page 1: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

EXPAND YOUR HORIZONSMake the Right Connections

Page 2: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Everything You Wanted to Know About Short-Term Domestic Assignments

Today’s Presenters:• Craig Anderson, C.E. Anderson & Company

• Kevin Shimkus, Deloitte

• Dawn Higgins, Nestle Purina PetCare Product Technology Center

Page 3: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

TEMPORARY DOMESTIC ASSIGNMENTS

Short Term

Assignments

• Generally – assignments of less than one year, then the employee returns home.

Long Term Assignments

• A less than permanent, shorter duration relocation in which the employee returns back home upon completion of the assignment.

Page 4: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

SHORT TERM ASSIGNMENTS

• What they are?

• When are they used?

• How will usage volumes change?

• Why doesn’t everyone use them?

Page 5: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

FORMAL POLICIES

Page 6: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

ASSIGNMENT PURPOSES

Page 7: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

PROJECTED USAGE

Page 8: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

ASSIGNMENT CHALLENGES

Page 9: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

EXPAND YOUR HORIZONSMake the Right Connections

Page 10: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Domestic Travelers : Setting the Stage

• Short term business travelers

• Frequent business travelers

• Short term assignment

• Long term assignment

• Relocation

Page 11: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Tax Considerations

• Federal– Tax home– Taxation of travel expenses and per diems

• State & Local– Withholding– Different definition of “wages”– Deferred compensation– Tax resident

Page 12: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Tax Home

• Rev. Rule 60-189

• Traveler must be “away from home” for travel expense to be excluded from income

• Principal place of business

• “Tax turtle”

Page 13: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Amount of Time Away From Home

• Rev. Rule 93-86

• Taxpayer has relocated “tax home” when they have exceeded 12 months in a location or when there is an expectation for them to exceed 12 months in that location.

Page 14: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

California Connecticut

Very aggressive regarding non-resident wage withholding and tax remittances

No De Minimis threshold

De Minimis threshold14 days

Illinois New York

No De Minimis threshold

De Minimis threshold14 days

December 2, 2009 CT issued Announcement 2009(9) requiring employer wage reporting and tax withholding for non-residents working 14 or more days in CT throughout the year

Has quite ‘favorable’ non-resident guidelines — Especially if company is not located anywhere in IL

Uses an informal calendar year de minimis threshold for state tax withholding for a non-resident working in New York as reported in its state Field Audit Guidelines issued July 1, 2004

Short Term Business Travelers: State to State

Page 15: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

State Tax Issues

• Different definitions of “wages”– Health savings accounts– Domestic partner benefits

• Not all states accept Federal W-4

• Deferred compensation & equity compensation

Page 16: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Local Tax Issues

• Local income tax withholding

• Local employer taxes

Page 17: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Contact Information

Kevin Shimkus

Deloitte Tax LLP

312-486-3254

[email protected]

Page 18: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

EXPAND YOUR HORIZONSMake the Right Connections

Page 19: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Nestlé Purina PetCare

Our Mission

To bring several employees (40+) to the St. Louis Headquarters Office to work on our

SAP implementation project.

Page 20: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Nestlé Purina PetCareHow to we plan for this?How to we plan for this?

Do we have a policy?Do we have a policy?

What’s our current policy?What’s our current policy?

Who needs to help me?Who needs to help me?

Page 21: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Nestlé Purina PetCareHow to Plan:

• Identify plans / practices already in place• Gather your resources

• Partner with Management (HR, Business, Factory)

• Partner with Legal• Partner with Relocation Provider• Partner with Finance / Tax / Audit• Partner with Service Providers - Corporate Housing,

Rental Car Company

Page 22: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Nestlé Purina PetCareDevelop our Policy:

• Expanded on plans / practices in place• Partnered with key resources• Communicated the policy and the process

• Face-to-Face meetings• Email

• Offered project incentives• HR Manager managed and owned the process

Page 23: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Nestlé Purina PetCarePolicy Benefits Offered:

• En route expenses• Return trips home every week or month• Housing accommodations (pet friendly furnished corporate

apartment or extended stay hotel)• Rental car or mileage reimbursement for personal car• Per diems • Miscellaneous expenses allowance (start and end of assignment)• Tax preparation and tax equalization assistance• Family accompaniment (special circumstances)

Page 24: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Nestlé Purina PetCare

Challenges:• Tax compliance and expense tracking• Family and personal issues• Communication of policy changes• From an HR perspective – keeping employees

engaged, morale

Page 25: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Nestlé Purina PetCare

Lessons Learned:• Over communicate

• Policy updates, changes, etc.• Involve partners early and often• Evaluate the policy, program

Page 26: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

EXPAND YOUR HORIZONSMake the Right Connections

Page 27: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

POLICY BENEFITS FOR TEMPORARY DOMESTIC

ASSIGNMENTS

Page 28: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

DOMESTIC RELOCATION POLICY RESEARCH

TEMPORARY DOMESTIC ASSIGNMENTSTrippel Survey & Research, LLC

© January, 2012 (Used with permission)

No part of this work may be reproduced

Copies of the report may be purchased by contacting

Trippel Survey & Research, LLC at 501 922-4000

Page 29: EXPAND YOUR HORIZONS Make the Right Connections. Everything You Wanted to Know About Short-Term Domestic Assignments Today’s Presenters: Craig Anderson,

Thank You for Attending!

Questions?