Work from anywhere

It sounds simple, yet it can be complicated

Remote work is here to stay

Out of necessity, you adopted work-from-home strategies. And now you’ve kept some forms of flexible work to retain talent. This opens your company up to new challenges like knowing where your employees are working and how your tax profile is impacted.

Compete in the talent-driven market

Attract, engage, and retain top talent as hard-to-find workers become more mobile.

Benefit from the expanding recruitment and employment radius

Seize opportunities to widen the lens on who and where you can find talent.

Address the challenges of multiplying work locations

Determine flexible work priorities and risk tolerance, assess technology, and identify required improvements.

Capitalize on the opportunity to evaluate employment structures

Identify ways to ease the operational challenges of working with employees in other jurisdictions and countries.

Working anywhere is changing attitudes about employment

Employees have rapidly embraced the opportunity to update their thinking on where and how they work. And to keep your talent equation in balance, you must be ready to adapt and take advantage of cost savings—without losing sight of required tax compliance and regulations. These numbers help tell the story.

89%

of companies have already introduced a remote work policy or are considering one.(1)

55%

cite employee-related drivers, such as employee demands, talent attraction and shortage are the main reasons for implementing remote working.(2)

79%

Increased productivity(3)

7+ TR.

Invested

$11k

Savings per employee(4)

Footnotes

(1) KPMG International, Current trends in remote working, April 2022
(2) KPMG International, Current trends in remote working, April 2022
(3) Global Workforce Analytics, Telework Savings Potential, San Diego
(4) Global Workforce Analytics, Latest Work-at-Home/Telecommuting/Mobile Work/Remote Work Statistics, San Diego (March 13, 2020)

Ease complexity

We help you define a sound strategy

Managing a flexible workforce can be complex because you must understand where employees are doing their work and how this will impact tax withholding, regulatory requirements, and state-specific compliance.

It means you need a clear picture of how you will define your flexible work policies and practices. You must determine the locations you will allow employees to work from, the duration and types of activities that can be done from those locales, and the guardrails you want to put in place to manage compliance. How will you handle extended “workcations” and temporary assignments?

This new way of working can also provide your organization with opportunities to save overhead costs and draw from a much broader talent pool. You may be able to uncover advantages you hadn’t previously considered.

The reality is that a balance must be struck between what employees want, and what your business needs. KPMG can help you ask the right questions and understand the tax implications of the decisions you make and the policies you put into practice.

We have a dedicated global network of Work from Anywhere experts with global, regional and industry-specific market insights, in-depth compliance expertise and technology know-how who can support you in all stages of your Work from Anywhere journey.

Strategy and policy

We’ll help you align your business goals with the practices you adopt. And by documenting your priorities and tolerances, you will be able to provide clear guidelines to employees.

Structure

You will need an organization structure that is flexible enough to manage fluctuating needs while helping you operate in a tax-compliant manner. You can anticipate regulatory changes and how you will adhere to them.

Compliance and process

As you develop your approach, having the automation and technology in place that works for your business will be essential to help you manage this complex environment and comply with a myriad of location-specific requirements.

Risk and data analytics

Assessing risk and measuring your return on investment will help you make better decisions about whether your policies are practical and advantageous for both you and your employees.

Change management

Initiating change in your organization will require a thoughtful and deliberate approach to ensure that employees and key stakeholders understand how to use and enforce your practices.

Consider these tax impacts of Work Anywhere

Income and social security tax

To stay compliant in monitoring and paying taxes accurately, you’ll need to monitor employee movement. You’ll want to make the correct withdrawals from their compensation, but also may need to educate them on additional paperwork they should file when submitting tax returns.

International corporate tax

Establishing employees in different countries compounds complexity—especially if they are working for an extended time period in a jurisdiction where your company does not have further operations. You may run the risk of establishing a permanent location and be required to pay corporate tax.

State and local tax

By allowing employees to work long term in states that differ from their assigned office locations, you may be taxed differently. This can lead to complex compliance headaches, especially if the number of employees is few. Understanding how states apportion payroll, sales, property, and other taxes will be a critical component of your strategy

Employment tax

Many taxing jurisdictions do not have consistent employment tax regulations in place, while others do. It is vital to develop clear policies and to monitor regulatory changes in each state or jurisdiction to ensure compliance.

Challenges beyond taxation

There is a full array of other issues organizations must stay up to date with when managing a work anywhere environment. These include foreign worker qualifications, cyber risk, and cost of living income adjustments.

Program shaping

It’s important to shape your work anywhere program to meet the specific needs of your business by determining priorities, risk tolerance, and whether your technology blueprint can fully support remote work.

Work-from-anywhere leaders David Mayes and Kshipran Thareja discuss the latest trends in the remote and hybrid work world―including what it means for companies and the strategies they can take to support a hybrid workforce. Watch the video to learn more.

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