KPMG's global network provides comprehensive global mobility services. Aided by the latest technology, our clients are given the ability to efficiently perform all the personnel management tasks required for their employees based all over the world.
Understanding client struggles & addressing key pain points
Tax compliance
Taxation across national borders is much more complicated than it is in the same country.
KPMG provides high-quality advisory services to assist companies and their employees, meeting all the necessary compliance requirements. Its services range from providing support in the run-up to an employee's departure and after they arrive in another country through to help with tax returns, tax reconciliation statements and dealings with tax authorities.
Incentive-based pay on a global basis
For companies with a mobile workforce, remuneration systems pose a challenge from a compliance point of view.
As well as facing a different legal system in each country in which you operate, frequent changes in payroll reporting and withholding tax requirements also need to be addressed. KPMG has developed its online Global Equity Tracker (GET) to solve precisely this problem.
Enterprise Assignment Manager
Enterprise Assignment Manager is KPMG's proven online management system for employee secondment.
It allows all the necessary secondment data to be monitored and assignment-specific balance sheet summaries to be generated automatically, including calculating specific tax-exempt amounts, bonus deductions, global hypothetical tax, salary splits and year-end reconciliation statements.
KPMG’s expertise
- Developing, reviewing and benchmarking guidelines, manuals and principles governing employee secondments abroad
- Advice on the transfer and deployment of staff linked to the company's headquarters or regional branch offices. Preparing full-cost accounts for employees on secondment; calculating net pay as well as gross-ups and hypothetical tax
- Advice on international remuneration systems and social security systems
- Handling complex tax issues relating to international staff transfers and cross-border commuters
- Optimizing administrative procedures relating to employee secondments
- Providing industry specialists to administer international secondment schemes
Equity-based Compensation
Implementing a compensation program that’s both competitive and compliant is a real challenge in today’s dynamic labor market. Now, more than ever, your business must offer a competitive compensation model that attracts and retains the best talents.
In addition, your business must be able to comply with different regulatory, legal and tax rules across multiple jurisdictions.
Recognizing the risks of non-compliance
The risks of non-compliance for equity-based compensation programs have become increasingly complex and costly – involving fines, penalties and reputational risk. A frequent target for many taxing jurisdictions, equity-based compensation is subject to increasingly more stringent withholding rules and processing challenges.
Technology and expertise that puts you in the driver’s seat
Aided by the latest technology, we deliver end-to-end services to help you become and stay competitive and compliant: From defining the most suitable incentive scheme for your company including planning its design, implementation and monitoring compliance risks at all stages to assessing your reporting and payroll setup.
Global Challenges
Using KPMG’s Global Equity Tracker (GET), our experts can help you to accurately calculate withholding scenarios in real time across numerous tax jurisdictions. Frequent changes in payroll reporting and withholding tax requirements also need to be addressed. These are all taken into consideration in GET.
Calculating the withholding and complying with reporting requirements for mobile employees across multiple jurisdictions is complicated, time-consuming and expensive. It requires specialized global equity tax knowledge and understanding of the various compliance requirements in each country.
Swiss employers are required to provide an annex to the annual salary certificate, detailing all granted incentive awards and taxable income in Switzerland and abroad – the Swiss Equity Annex.
Incentive compensation aligns your employees’ interests with your company’s performance, fostering loyalty and motivation without immediate cash outlay.
If you offer this form of incentive to your employees, as a Swiss employer, you must comply with the requirement to provide an equity annex to your employees and the cantonal tax authorities.
The Swiss equity annex must contain a detailed breakdown of all granted incentive awards, including all vestings and exercises, as well as taxable income in Switzerland and abroad. This is required for both your local and mobile employees.
The process of gathering and consolidating information from various sources, coupled with understanding the tax implications of your different plans and awards can be complex and time-consuming.
KPMG’s expertise
- Advising on the design of a compensation and/or equity plan that meets your business needs
- Building the right incentive drivers – knowing and understanding the varied options for cash- and non-cash-based compensation and equity schemes to flexible benefits
- Assessing your existing tax reporting and payroll setup and/or equity plans and whether they still meet your business needs and goals
- Providing a full tax and legal review, risk assessment, individual country studies and process planning
- Supporting the implementation of a new compensation or/and equity plan; defining the correct accounting treatment and payroll as well as drafting tax and legal communication for employees
- Optimizing administrative procedures relating to equity-based compensation
- Conducting a post-implementation and sustainability review to monitor payment and share delivery processes, compliance and tracking tax and reporting obligations for mobile employees
- Implementing comprehensive global scope and total automation to cover any type of incentive arrangement in every jurisdiction you require using KPMG’s Global Equity Tracker
Your advantages with KPMG LINK Work Force Technology
We bring together a world of tax, technology and immigration expertise to make managing a global workforce easy, effective and more transparent - no matter where in the world your business takes you. Whether your organization is small, large, centralized or decentralized, we're here to help you navigate through an increasingly mobile world.
KPMG LINK integrates with your existing technology to create one consolidated solution, reducing complexity, controlling risks and ultimately, saving your business money. From the preparation and reconciliation of tax and payroll liabilities to compensation and global mobility program management, our tools can help make your world simpler.
Partnering for success: submit your interests & open questions
We look forward to your requests and will be happy to answer open questions you may have.
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