Relocating anywhere, whether to a nearby town or all the way across the country or world, can be a stressful experience. Corporate relocations can add even more anxiety as an employee must adapt to their new working environment as well as their new living environment. Often forgotten is the pressure the employer feels to ensure their employee is taken care of throughout the entire mobility process.
Outsourcing financial mobility services can be advantageous to both employees on the move and their employers, contributing to a positive experience for all involved.
What Financial Services Should You Consider Outsourcing?
Many people may be surprised at how complex the financial side of global mobility can be and the requirements to remain compliant with internal policies and external reporting obligations. A high number of assignments, whether it be US domestic relocation, extended business travelers (EBTs), short term international assignments and/or long term international assignments, can quickly overwhelm a company not equipped with the experts or technology to stay on top of all the details. Here are some areas that a global mobility financial services company can manage for you:
- Audit: expense audit to policy, compliance review, exception tracking, FAR reporting, audit controls, record retention
- Budget: budget/cap management, spend-variance analysis, cost estimates – US Domestic and International
- Payroll: US and Canadian payroll calculations, compliance, withholdings – ongoing payroll reporting, delta/true-up reconciliation, customized reporting
- Payments: 24-hour fund disbursement, ACHs, International wires in all major currencies, multi-currency, pay delivery, FX management
- Compensation Services: compensation accumulation and collection, hypo tax estimation/audit, balance sheet, payroll instructions, COLA/FX calculations
Six Reasons to Outsource Your Mobility Financial Services
- Rely on Dedicated Experts:
The mobility process can add administrative burdens onto a company, while also putting them at risk for non-compliance with tax laws related to the reporting of relocation income to the respective authorities. Companies that offer global mobility financial services have subject matter experts, most with years or even decades of experience dealing with the complexities of relocations and assignments. Some, like Ineo, employ certified professionals to lead the way: Certified Public Accountant (CPA) and Certified Relocation Professional (CRP) are just a couple of the certifications employees in the global mobility field may hold. There are other drivers to outsourcing that should capture the attention of companies.
- Reduce Costs:
Eliminate the need for staff or special software to handle mobility-related processes, accurate tax reporting to account for short-term assignments or moving expenses that may still be deductible in several states.
- Process Efficiency:
Dedicated global mobility financial solution providers can reimburse employees for their expenses quickly, while remaining compliant with company policy and getting funds out in different currencies to bank accounts all over the world. Payroll and tax reporting can be streamlined by the creation of an Electronic Data Interchange (EDI) or API/web service, speeding up the process while also ensuring accurate inputs occur.
- Enhance Transferee Experience:
Eliminate confusion throughout the move by relying on processes and documents developed by providers with extensive experience managing global mobility financial services for all types of companies. . Many have expense submission options via online or a mobile app, allowing a transferee to submit for reimbursement while on the move and also receiving updates on the status of that request along the way. Relocation Tax Reports are provided to assist a transferee and their accountant with understanding any income added to their W-2 for taxable relocation expenses. Also, having mobility experts as contacts for transferees to reach out to for assistance with their problem or question is a big plus.
- Flexibility in Services:
Choose to outsource only the services you need as most providers that offer t dedicated global mobility financial solutions allow for outsourcing on a full or partial basis. Perhaps the expense reimbursement process is running smoothly inside your company but the tax reporting piece is proving to be a challenge. Outsourcing payroll reporting services would make sense in this scenario. It is possible you have employees overseas, making it difficult to reimburse that person locally in their foreign country. Outsourcing your international payment services would be beneficial here.
- Focus on Core Business:
Let’s face it. Your company likely does many things far better than mobility. Outsourcing financial services allows you to leave the challenges relocations can present to the experts, letting you focus on continuing to improve your core business. In addition, you will have peace of mind knowing that your employees on the move are receiving the best service possible.
There may be cases where outsourcing financial-related relocation services is not right for your company. Perhaps you only move a small number of people domestically and do not use a detailed relocation policy, only paying out a lump sum to assist with the move. It is also possible that your company has been handling relocations in-house successfully for years and has the staff and processes already in place. Outsourcing financial services likely makes sense for most companies with a decent volume, as the potential for reducing costs while enhancing the overall relocation experience for everyone makes outsourcing a very attractive option.