Thanks to today’s ever-evolving technology, markets are becoming more and more global. Time zones and borders are not as relevant and we can now work simultaneously with our colleagues across all corners of the world. However, some things are better accomplished in a more direct, personal way. Sometimes, you need a person on the ground in order to get the job done right.
In today's workforce, it is common to have employees working on multiple projects across the country or around the world. While permanent and long-term assignments are generally managed through a defined HR function, managing short-term business travel tends to be a bit more challenging. Actively managing short-term business travel can greatly reduce risk for your organization and business travelers. Thus, developing a structure to oversee this area is imperative.
All US citizens and permanent residents must file federal income tax returns if they meet the IRS filing threshold. The amount of this threshold will vary depending on factors such as age, filing status, and type of income (i.e., income from employment or self-employment). For example, a single individual under the age of 65 would be required to file a 2019 US federal tax return if their gross income exceeded $12,200. If the earnings came from self-employment, this same person would need to file a US federal tax return if their net earnings exceeded $400.
It is not uncommon for businesses expanding their operations across international borders to discover that moving employees abroad has created tax issues—and unfortunately, they often don’t discover this until they receive notice that overseas employees are noncompliant in either their Home or Host country.