Important considerations in administering personnel working abroad

Many companies have personnel working abroad. Regardless of whether this refers to secondment during a longer period of time, to a shorter assignment or to a cross-border commuting situation, there are a large number of factors to consider, amongst other things, payment of social security contributions, payment of preliminary tax in various countries and filing of income tax returns.

Even if the employer has good control over precisely which personnel are working abroad, (however, approximately 30 percent of the companies did not have this control according to our report, Moving People with Purpose - Modern Mobility 2014) there are a number of challenges linked to administering personnel working abroad. Examples of issues which often come to the fore are questions about work permits, payment of social security contributions, payment of preliminary tax in a number of countries and income tax returns.

System for managing personnel working abroad

Companies with a limited number of personnel working abroad often use their own-produced documents listing the personnel and the relevant details. It has been our experience that when a certain volume of personnel are involved, then, these own-produced lists become quickly out of date and difficult to manage, which is the reason there is a need for a reliable system to be able to handle this administration.

A good system for administering personnel working abroad should provide, and in an easily summarized manner, such details as:

• The names of the personnel working outside Sweden and where they are working.
• If the personnel working abroad have the correct work permits and when these permits mature.
• If all certificates stipulating the country covering social insurance benefits, etc. are in place and when they mature.
• If all personnel file their income tax returns in time.
• The number of days spent by the company’s personnel travelling on business in various countries needs to be stipulated. This is important in order to be able to proactively take decisions and implement any necessary measures and, in this manner, avoid any undesired tax consequences.

In order to fulfill the requirement of a system which can assist the company in administering its personnel working abroad, PwC has developed myMobility. myMobility was launched during 2014-2015 and PwC’s clients can use this system free of charge.