Compensation Balance Sheets and Hypothetical Tax Calculation

Compensation Balance Sheet Creation

Whether you’re an expatriate setting off on an assignment, or a corporate relocation manager working through the costs and requirements for compliance, Kinetix can help you understand the expatriate compensation balance sheet approach, and keep you on the right track for compliance and timely adjustments to the benefits applied to the assignment.  Not only can Kinetix help in the collection of assignment-specific data, but also can liaise with your corporate tax provider, payroll, and the employee to ensure a complete, comprehensive picture is created of costs, tax impact, and disposable income.

Kinetix operates through a global assignment management system that provides a comprehensive suite of financial tools that help to build a complete and compliant approach to global assignment compensation.  Building on policy/benefits, Kinetix works with the leading providers of location-specific data to ensure that adjustments to cost of living, taxes, and benefit-specific changes to global assignment compensation are built into an effective model to adjust compensation as markets change.

Employee Relocation Expenses and Employee Tax Support

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Kinetix partners with our clients’ tax partners to provide timely responses to inquiries about taxable employee relocation expenses.  The Kinetix Assignment Management System allows for processing, audit, review, and reporting of employee relocation expenses all in one place, and is accessible through employee and client access portals that include mobile app access.

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Kinetix helps to keep you compliant for all of your international assignments

Hypothetical Tax Calculation

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.

Hypothetical Tax Calculation

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.

Global Tax Compliance 

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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.  

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Compensation Balance sheets help ensure compliance and timely adjustments to benefits applied to assignments. Kinetix Relo can help you with:

● Compensation Balance Sheet Creation

● Hypothetical Tax Calculation

● Collection of assignment-specific data

● Reporting

● Liase with your corporate tax provider, payroll, and the employee

● Processing Support