The critical connection between global mobility and payroll
As international mobility becomes more common, the relationship between global mobility and payroll has become increasingly important. When employees move across borders, organisations must ensure they are paid accurately and on time, while also managing tax, social security and residency considerations in multiple jurisdictions.
Navigating cross‑border tax and social security requirements
Global mobility and payroll are intrinsically linked. When an employee relocates, they may need to be paid from one location while being taxed in another.
Ensuring their cash flow remains intact and that taxes are applied correctly in real time is essential. This requires careful coordination between payroll teams and mobility advisors to address:
- Cross‑border tax obligations
- Social security coverage and exemptions
- Residency changes
- Real‑time payroll adjustments
- Avoiding double taxation and unnecessary cash‑flow impacts
Supporting employees through change
Payroll can be a sensitive area for employees - and moving between jurisdictions likely comes with concerns. Even positive changes to payroll can create worry about whether their tax position or benefits have been negatively affected. Ensuring employees understand why their payroll has changed helps maintain confidence and minimises disruption.
In a recent case Irish employees were seconded abroad, creating differing allowances, local rules, and tax treatments across two countries. In some jurisdictions, certain allowances are exempt from payroll taxes. In others, residency status continues to trigger obligations in the home country.
Payroll specialists ensured Irish payroll remained accurate, while the global mobility team advised on cross‑border social security and benefit taxation. This collaborative approach ensured:
- Allowances were treated correctly
- Double taxation was mitigated
- Cash flow remained stable for employer and employee
- Residency and compliance requirements were fully assessed
Why a combined approach is necessary
By working side‑by‑side, payroll and global mobility teams ensure that international employee movements are managed seamlessly; from advisory through to implementation. This alignment helps organisations avoid errors, compliance risks and employee dissatisfaction.
Global Mobility & Expatriate
Payroll
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