There are different ways to pay employees who are on Long-Term International Assignments. The “best” mode of delivering an international compensation package depends on the employer’s philosophy and delivery capabilities.
The three most common ways to deliver international compensation are Home Country Payroll, Host Country Payroll, and Split Payroll (some compensation is delivered in the parent country and the remainder delivered in the host country). There are advantages and disadvantages to each of the delivery methods.
Ineo’s platformconsists of Global Compensation Modules, in conjunction with the Expense Management Module, which automates the processes for reporting compensation delivery to the employee (i.e., Balance Sheets), reporting to payroll entities involved with the international relocation (i.e., Payroll Instructions, Compensation Import, Expense Comp Collection, and Shadow Payroll Processing), and reporting to third-party service providers for tax preparation purposes (i.e., Global Statement of Earnings).
It should also be noted that in some situations, minimizing tax implications will dictate a certain pay delivery (e.g., pay delivery outside of Brazil may be important for assignees outbound from Brazil).