is renewed momentum for remote work and offshoring. The technological infrastructure that enables distributed teams is now mature. What was once experimental — running international teams via VoIP calls and occasional portal logins — is now standard practice through Zoom, Teams, and sophisticated collaboration platforms. If relocating talent to the U.S. becomes cost-prohibitive, businesses will simply retain global teams in situ. Developers in India, project managers in Sri Lanka, or customer support specialists in the Philippines can all contribute without crossing borders. For payroll leaders, this means continued growth in cross-border employment, multi-country payroll compliance, and the use of Employer of Record (EOR) solutions to manage distributed workforces. Tax Nexus and Permanent Establishments Beyond workforce strategy, the H-1B fee may indirectly push companies toward establishing permanent establishments in the U.S. If sending in-house talent becomes financially unattractive, businesses may instead incorporate locally to ensure access to the market.
Payroll and HR professionals must therefore consider not only employment compliance, but also the downstream effects of corporate tax obligations when advising their leadership teams.
This creates new tax exposures. The U.S. could strengthen its corporate tax base by nudging companies into paying federal and state taxes on American revenues. From a policy perspective, it aligns with Trump’s broader agenda of maximising domestic tax receipts while tightening immigration pathways. Payroll and HR professionals must therefore consider not only employment compliance, but also the downstream effects of corporate tax obligations when advising their leadership teams. Immigration, Politics, and the Bigger Picture The decision to raise H-1B visa fees cannot be separated from U.S. immigration politics. Trump has consistently positioned himself as
04:05 I 35
ISSUE 16 GLOBAL PAYROLL MAGAZINE
Made with FlippingBook - Share PDF online