International Relocation Services: Dual Payroll Arrangements for Executives
Determining the best method of payment for executives on long term or short term international assignment is a very important responsibility for global mobility managers. Depending on the company, there are many options available. These payroll arrangements are often referred to as dual payroll arrangements. The most common options are split payroll, split delivery and shadow payroll. If you’re unfamiliar with these terms, don’t worry. International relocation services providers can to make those decisions a little easier. In the mean time, this article will give you a clear idea of what options are available and which arrangement is most appropriate for your situation.
• Split Payroll: Split payroll is an arrangement where funds are disbursed to an employee from both their home country, and their host country. Funds do not necessarily need to be split in half. However, there is a percentage coming from both ends.
• Split Delivery: Split delivery is an arrangement where funds are delivered to the executive in the host country, but not necessarily coming from the host payroll.
• Shadow Payroll: Shadow payroll is when 100% of the payroll is being delivered from the home country, but being shadowed or mirrored to reflect the currency and remitting of taxes from the host country. This is also known as the "dummy pay slip" process as the executives pay is provided on a secondment basis.
Although these payroll arrangements are common, they can be very expensive to administer. This is usually the case when the home country and host country are on different payment frequencies. Luckily for the executives, this decision is always made by the global mobility manager within the company.
Securing the international relocation of an executive can be a difficult feat; there is no reason for a company to make the transition without proper guidance. The purpose of relocation assistance companies is to make the process as smooth as possible. The trained professionals at Cosmopolitan Services Unlimited are willing to answer all of your relocation questions.