Transcript of Payroll Compliance for Business Travelers: What You Need To Know
- 1. Payroll Compliance for Business Travelers: What You Need To
Know Presented by: Vic Arora CPA & Co-Founder, Blackspark
- 2. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Our Presenter Vic Arora,
Co-Founder Qualified as a Canadian Chartered Accountant in 1997
with Ernst & Young where he was a member of the Human Capital
practice. Worked with clients on tax related aspects of employee
movement including coordination of tax compliance, compensation
reporting, and tax planning. Co-founded Epoch Integration Inc. in
2001, an enterprise wireless venture whose success led to its to
acquisition by Blackberry (RIM) in 2006. Consultant to
PricewaterhouseCoopers' International Assignment Services practice
Co-Founded Blackspark Corporation.
- 3. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. AGENDA >Meet Blackspark
>Payroll Obligations and the Impact >Beating Complexity
through Integration and Automation AGENDA
- 4. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. ABOUT BLACKSPARK Based in
Toronto, Ontario
- 5. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Employees create payroll
obligations when they travel but.. The payroll team has no idea:
when where and for how long theyre traveling THE PAIN
- 6. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. THE PAIN
- 7. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. John Smith: lives in Texas
and travels to California 24 days a year annual salary is
US$150,000, works 240 days a year. Taxable in California for: 24
days/240 days x $150,000 = $15,000 AN EXAMPLE
- 8. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. California, Colorado,
Massachusetts, Minnesota, New Jersey, New York, and Pennsylvania
(high audit activity) States with personal income tax on
non-residents States with no personal income tax
- 9. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Prolonged Recession Easier
to tax non-residents (non-voters!) Better methods to analyze
transactions & identify who owesPLUS > WHY NOW?
- 10. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Media Attention Tax Firm
Emphasis WHY NOW?
- 11. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. How Big? .. . HOW BIG? New
York State: $4.9B (7% of budget) BIG 4 example: $1.3M annual U.S.
exposure
- 12. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. COST OF NON-COMPLIANCE 1.
Payment of withholding tax owing PLUS 2. Penalties of up to 100% of
withholding tax owing PLUS 3. Interest NEW YORK STATE
- 13. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Execute multi-jurisdictional
payroll each payroll period across our entire employee population
THE MISSION
- 14. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Hard payroll cycle (TIME)
Varying regs by state (COMPLEXITY) THE ENEMY
- 15. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. We need trip details ASAP to
calculate workdays BEATING TIME Data available in real time (as it
is booked) No need to harass travelers Travel system is the answer!
>
- 16. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. BEATING TIME ALSO:
Cancelations and itinerary changes Connecting flights Purpose of
travel
- 17. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. States with no tax
Reciprocity Withholding required in state? Technical &
practical thresholds BEATING COMPLEXITY
- 18. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. States with no tax If ONLY
all states had no income tax! Travel days in these states are
treated as workdays in the employees home state for payroll
purposes. STEP 1: STATES WITH NO TAX
- 19. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Reciprocity An agreement
between individual states. DEPENDENT on home state. If applicable -
travel days in these states are treated as workdays in the
employees home state for payroll purposes. STEP 2: STATE TAX
RECIPROCITY
- 20. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Withholding required in
state? STEP 3:CORPORATE NEXUS Employer requirements ONLY apply if
organization has payroll nexus in the state If applicable - travel
days in these states are treated as workdays in the employees home
state for payroll purposes.
- 21. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Technical & practical
thresholds Rules and regulations differ in EVERY state. Blend of
technical and practical is often a good approach. STEP 4: TECHNICAL
& PRACTICAL
- 22. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. SOLUTION Integrated via
Concur App Center
- 23. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. OBJECTIVE Help customers:
Save time Automate manual processes to comply Save money Eliminate
financial risk of penalties
- 24. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. WHAT IT DOES Speaks to your
Concur system No manual processes Delivers report each payroll
period Supports your existing payroll process
- 25. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. FLIP THE SWITCH Rapid
deployment by Concur Admin No linking individual accounts Syncs as
employees book Includes historical travel
- 26. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. WE CONFIGURE FOR YOU
- 27. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. NO CHANGE TO TRAVEL
PROCESS
- 28. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. TRAVEL DATA FOR PAYROLL
- 29. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. TRAVEL DATA FOR PAYROLL
- 30. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. TRAVELER SIGN OFF
- 31. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. TRAVELER SUPPORT
- 32. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. ANSWER DELIVERED An
effective tool must be able to present a picture of exposure within
five minutes of looking at it. Out of all of the various products I
had seen, only borderFile did that. -Cliffs Natural Resources
- 33. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. EXECUTION ADP
MULTI-JURISDICTION: Supports multiple worked in states Temporary
configuration per payroll period Data Import Fields added to a .csv
Pay Data Import File
- 34. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc.
- 35. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. INTERNATIONAL
- 36. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. INTERNATIONAL
- 37. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. FREE ANALYSIS OFFER
EXCLUSIVELY FOR CONCUR CLIENTS Save over $2,500 by enrolling for a
free analysis by November 1st!
- 38. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Q&A
- 39. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. Vic Arora, CPA, CA
Co-Founder varora@blacksparkcorp.com 855.667.7275 x701 CONTACT US
Concur.com/AppCenter
- 40. 2011 Concur, all rights reserved. Concur is a registered
trademark of Concur Technologies, Inc. RESOURCES The New York Times
States Look Beyond Borders To Collect Owed Taxes:
http://www.nytimes.com/2010/03/22/business/22tax.html?pagewanted=all&_r=0
The Financial Times Rise in mobility is a business risk:
http://www.ft.com/intl/cms/s/0/781bc3e0-5f25-11e2-8250-00144feab49a.html#axzz2Z6vGyYuO
CNNMoney The business traveler tax threat:
http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/index.html
2011 Deloitte Payroll Operations Survey:
http://www.deloitte.com/assets/Dcom-
UnitedStates/Local%20Assets/Documents/us_consulting_DeloittePayrollSurveyResults_121611.pdf
EY T Magazine A personal risk for corporate travelers:
http://tmagazine.ey.com/insights/a-personal-risk-corporate-travelers/
Webinar by Ceridian and the American Payroll Association focussed
on this topic (this presentation was followed up with in depth
sessions held by the APA at this years Payroll Congress
Conference):
http://www.ceridian.com/resources/webinars-ondemand/managing-state-income.html