BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. Expatriate Payroll BDO USA, LLP Ronii Rizzo, (Managing Director – Expatriate Services) October 6, 2016
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Expatriate Payroll - American Payroll Association · tax practice. Ronii specializes in the taxation and payroll reporting of U.S. nationals working abroad and foreign nationals working
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BDO USA, LLP, a Delaware limited liability partnership, is the U.S.
member of BDO International Limited, a UK company limited by
guarantee, and forms part of the international BDO network of
independent member firms. BDO is the brand name for the BDO
network and for each of the BDO Member Firms.
BDO USA, LLP, a Delaware limited liability partnership, is the U.S.
member of BDO International Limited, a UK company limited by
guarantee, and forms part of the international BDO network of
independent member firms. BDO is the brand name for the BDO
network and for each of the BDO Member Firms.
BDO USA, LLP, a Delaware limited liability partnership, is the U.S.
member of BDO International Limited, a UK company limited by
guarantee, and forms part of the international BDO network of
independent member firms. BDO is the brand name for the BDO
network and for each of the BDO Member Firms.
Expatriate Payroll
BDO USA, LLPRonii Rizzo, (Managing Director – Expatriate Services)
October 6, 2016
Client name - Event - Presentation title
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Expatriate Defined
Expatriate: A person temporarily or
permanently residing in a country
other than that of the person’s
origin.
The term is commonly used in the
context of professionals or skilled
workers sent abroad by their
companies.
American Payroll Association
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Client name - Event - Presentation title
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Overview of the Decision Making Process
The company should establish the need for an expatriate assignment.• Increased activity in emerging markets
• Rapid globalization of business
• More countries joining mobility trend
• Attract and retain global talent
Length of the Assignment• Short-term (6- 12 months?)
• Long-term (12 months – 5 years?)
• Indefinite
Cost Containment• Establish Policy/Benefits (Indices/allowances vs. in-kind)
• Cost Projection for budgeting and assignment cost tracking
• Pensions/social tax contribution planning (home vs. host country plan)
• Certificate of Coverage (Totalization Agreement)
• Secondment Agreement to establish employment arrangement
• Tax Treaty Application
• Determination of which company will bear which costs
Additional Considerations• Visa requirements
• Relocation of family
• Language barriers
American Payroll Association
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Assignment letter
•Position
•Home and Host location
•Base Salary and Possible Incentives
•Housing Considerations • Housing and Utility Allowance
• Housing norm
• Home Retention
•Additional Assignment Benefits• Goods and Service Differential
• Relocation Allowance
• Dependent Education
• Automobile
• Home Visits
American Payroll Association
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Assignment Letter (Continued)
•Other Benefits• Health Care
• Vacation
• Holiday
• Immigration Expenses
•Taxes and Social Tax Charges• Tax Equalization
• Hypothetical Tax
• Foreign Tax
•General
•Signatures
Do you have an assignment template prepared?
American Payroll Association
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Let’s discuss why it is important for the payroll specialist
to read and understand the assignment letter.
American Payroll Association
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Assignment Letter:
Determination of applicable policies
•Tax Equalization
(We will use this method for our demonstrations)• Tax neutral
• No better or worse off for taxes due to the assignment
•Tax Protection• No worse off for taxes due to the assignment
•Guaranteed Net Salary
•Localized• Employee is responsible for all actual taxes
• May receive some compensation with a tax gross up