State and Local Tax (SALT):
Allowing employees to work long-term in states that differ from their assigned office can create tax "nexus." This can lead to complex compliance headaches related to the apportionment of payroll, sales, and property taxes, particularly if the number of employees in a given state is small.
International Corporate Tax & Permanent Establishment Risk:
An employee working for an extended period in a country where your company lacks a physical office can inadvertently create PE. This may trigger new corporate income tax liabilities and filing obligations in that foreign jurisdiction.
Employment & Payroll Tax:
Taxing jurisdictions have inconsistent employment tax regulations. It is vital to monitor regulatory changes in each location to help ensure compliant income and social security tax withholding and reporting.
Employee Tax Implications:
Without proper guidance, employees may face complex personal income tax filing requirements in multiple jurisdictions, leading to confusion and dissatisfaction.
International Corporate Tax & Permanent Establishment Risk
State and Local Tax (SALT)
Employment & Payroll Tax
Employee Tax Implications
Key tax risks of a distributed workforce
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