Tuesday, October 15, 2019

Human resources - Expatriate Compensation Research Paper

Human resources - Expatriate Compensation - Research Paper Example This paper will seek to discuss about the different compensation options offered to expatriates as well as what they should expect in those compensation packages. Additionally, it will also include the hidden costs and other life costs that expatriates should consider as they could affect their compensation. Compensation options offered to expatriates Tax Many companies offer expatriates several compensation options. These compensation options can be in the form of taxes whereby a foreigner working in a particular country can be exempted from taxation. This means that, that employee has a compensation option, which is tax, and he or she can choose to be exempted with reference to this option (Froymovich, 2011). In this case, an employee becomes eligible for things like foreign tax exclusions. In addition, he or she can still eligible for extra compensation options that include credits and deductions that help protect the employee from double taxation particularly on the same amount o f income he or she generates after a given period. Therefore, it is advisable that if an employee is going to be paying for his or her local taxes, hiring a qualified and eligible international tax expert who can help understand the kind of exclusions and credits an employee can qualify for in that specific country (Aenlle, 1996). For instance, in some countries such as Belgium, temporary international workers have the eligibility to claim for deductions that locals cannot. In tax preparation, employees tend to include what they commonly refer to as the tax equalization contract in expat packages. In this kind of situation, a company pays for an employees’ international or foreign taxes while the employee essentially pays for taxes in his or her home country as if he is still living in that country (Froymovich, 2011). However, noting that there are number of pitfalls in this case is crucial. An employee can end up owing the company he works for if that company’s accoun tants calculate the employee’s tax burden and establish it exceeds the total amount of money the employee has in his accounts especially if the employee is an American (Kwoh, 2012). Moreover, despite the point that the company may promise to pay for an employee’s tax preparation so that the employee complies with the US regulations, it may fail to inform the employee of any other local charges that the employee is responsible for in due time making it hard for the employee to comply immediately. A clear outlook into this situation indicates that the article provides evidence that there are hidden charges that an employee may fail to be aware of resulting to ambiguities. In this case, the hidden charges are the local charges needed to take care of the required paperwork and in the US, it can cost up to $1000 or more (Aenlle, 1996). Apart from this case, there are others where an employee may be responsible for his or her local taxes without prior preparation knowledge o r assistance as per what date will the exemptions or deductions will be available. According to the senior portfolio manager, Maxim Global Wealth Advisors, Portland, Ore,

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