Employee expenses are a necessary part of international business, such as air travel, lodging, meals, vehicle expenses and per diem allowances. However, when you have employees overseas that are submitting expenses, you are going to be subject to local rules and laws on which expenses are permitted and any limits that may be in place.
You may be trying to manage this from the home office, but how are you going to learn the local practices and procedures and integrate them into your own system? What do you do if some portion of the employee expenses are taxable in the host country, impacting your employee’s net compensation?
The primary thing to remember is that when you hire employees overseas, you will need to follow all foreign employment and tax laws, which includes expense reimbursement policies.
Fortunately, there are efficient solutions for you, and to get you started we have put together this quick guide on expense reimbursement for your overseas employees.
Common Challenges with Expense Reimbursement
When you start to reimburse expenses in different countries you will run into a few challenges that may be new. In many cases, you won’t be able to reimburse the expenses directly from home as your overseas employees will be subject to a different payroll and tax system. You will need to find a way to manage expenses on the ground in the foreign destination where the expenses are incurred...Read More
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