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employee start working for us from abroad while they’re waiting for a visa?’”, “Can I work from my home country for family reasons?”, “Can an overseas based employee visit the UK for a short period of time to work?” Today, each question requires a bespoke analysis spanning tax, payroll, social security and immigration law. Payroll teams need to liaise with the human resources (HR) and finance teams from the outset to ensure
there are no surprises. With clearer OECD-backed rules, employers may be able to give quicker, more confident answers and avoid unnecessary refusals. Reduced cost and administrative burden Running payrolls in multiple jurisdictions, registering for foreign taxes and meeting local reporting rules can be disproportionately expensive compared with the duration of employee presence. Any simplification will directly reduce compliance costs, time spent resolving unexpected liabilities and risks associated with unreported overseas work. Clearer global standards will also reduce the likelihood of discovering, too late, that an employee has been working overseas without payroll or HR approval, creating a complex clean-up exercise.
or clearer rules would provide reassurance and allow them to plan international stays with confidence. Benefits for the global economy The consultation also aligns with broader global developments. Developing nations are investing heavily in digital infrastructure and fostering tech savvy workforces eager to engage in global markets. Meanwhile, employers increasingly rely on globally distributed teams, particularly for digital, technology and advisory roles. Clearer rules will help increase workforce mobility, reduce friction in global commerce and support economic participation from emerging markets. It also helps facilitate efficient allocation of talent resources worldwide. Ultimately, this could create a more dynamic, flexible and inclusive global labour market. For payroll professionals, the OECD’s work signals meaningful progress towards simplifying cross-border compliance. With potential harmonisation on thresholds, guidance on employer obligations and recognition of the challenges faced by global businesses, payroll teams may soon have better tools to manage international mobility confidently and efficiently. This is good news for employees, who gain greater flexibility, and employers, who can attract talent without prohibitive compliance burdens. It’s also great news for payroll teams, who gain clearer and more manageable rules. These changes could ultimately benefit the global economy, increase global mobility and remove some of the barriers which reduce productivity.
Stronger workforce integration With employees increasingly dispersed across countries and cultures, employers need policies which bring teams together and support consistent corporate identity. Global mobility guidance
will help organisations design policies that are fair, workable and globally aligned. How this helps employees
Ian Jones
More freedom to work where they want
Associate Director, RSM UK
Hybrid and remote working are now key factors in attracting and retaining talent. OECD-aligned guidance could enable employees to work abroad temporarily without creating unexpected tax liabilities, support family needs in other countries and combine personal travel with short periods of work. More predictability and fewer surprises Employees often worry about creating tax issues for themselves, or their employer, when working overseas. A ‘safe harbour’
Joanne Webber Tax Partner, RSM UK
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