The heart of the compensation balance sheet approach and a strong foundation for expatriate compensation is a properly executed executed hypothetical tax calculation.  Hypothetical Tax calculation determines the employee’s tax obligation were they to stay at home to allow appropriate amounts to be deducted from the employee’s salary in the event the employee is part of a tax equalization process.

At the heart of every program we deliver is a quality employee relocation experience.  To best achieve that, the program has to operate in a way that is financially sustainable for the organization, being mindful of taxable and deductible employee relocation costs, relocation program fees and funding costs, and changing landscapes in cost of living.  Kinetix has a view to both the micro and the macro-level of corporate relocation costs, and keeps you educated on the best approach to strike a perfect balance between relocation program sustainability and employee and family experience.

When your organization sends key employees and their families abroad, you create tax obligations that can follow you straight back to your home country; unexpected global tax costs can chip away at your globally sourced income.  Global tax compliance requires an engaged discussion on international tax regulations between your international tax management team, your payroll and compliance groups, your mobility provider, your employee, and your host location representatives.  As a central auditor of international tax regulations, assignment and payroll data, and process timing and requirements, your tax provider needs the support that Kinetix provides to ensure accurate foreign employee income tax and payroll tax and contribution tabulation.