Introducing Certino. Tax intelligence to reduce the cost of your shadow payroll

Transcription

1 Introducing Certino Tax intelligence to reduce the cost of your shadow payroll

2 Welcome to Certino We are a brand new company with a unique approach to providing true tax intelligence for our customers. Specifically, we have identified the management of employment tax, cost and risk known as the shadow payroll as a massive challenge for international businesses with complex, mobile workforces. Based on over 50 years experience of managing global mobility solutions in multinational businesses, we have developed a purpose-built technology platform and a seamless process for managing your international employment tax liabilities. I look forward to discussing your international tax challenges and how Certino can help reduce your costs and compliance risks with you in person. Richard McBride richard.mcbride@certino.com 4 Certino in 30 seconds 6 Understanding your shadow payroll 8 The challenges of managing your shadow payroll 10 Questions you should be asking about your shadow payroll 12 How Certino manages the shadow payroll 14 How the technology works: our five stage process 16 The benefits of working with Certino (part 1&2) 18 Our commitment to our clients 20 Industry feedback 22 The people behind Certino 3

3 Certino in 30 seconds Who we are Certino are the global experts in shadow payroll. What we do We enable our customers to understand and manage the tax liabilities of an international workforce by automating the end-to-end process. The benefit of what we do We reduce costs, simplify compliance and minimize risk for your global operations in a consistent and easy-tomanage way to put you in control of your international tax management. 4 5

4 Understanding your shadow payroll For a business to be successful, it needs to have the right people in the right place at the right time. Increasingly, this needs to be achieved with full compliance. This is no small challenge, but when it involves the movement of employees across international borders, those challenges multiply and impact across the entire organisation. Historically, the focus has been on the pre-assignment and deployment phases through activities such as selection of individuals, cost estimates, building efficient processes for mobilization, supporting the employee (and their family) through the relocation process. More recently, organizations operating internationally have placed greater emphasis on being compliant with the laws of the territories in which they operate. But with the focus on getting the employee to the host location, compliance efforts have been primarily focused on immigration requirements and on obtaining work permits where they are required. However, there is still little focus on proactive management of employment taxes which represent one of the largest costs associated with moving staff across borders; typically, around a third of the total employment costs of an international assignee. This is what s commonly known as your shadow payroll. Many organizations muddle through, believing that the annual tax return process is sufficient, but by then it is usually too late to take steps to minimize tax liabilities; and always too late to comply with monthly withholding and reporting requirements. Employment taxes represent around 33% of the total cost of moving staff across borders 6 7

5 The key challenges of managing your shadow payroll AVOID COSTLY FINES ENHANCE COMPLIANCE AVOID DOUBLE OR MULTIPLE TAXATION REDUCE COSTS The challenges of managing your shadow payroll Notwithstanding internal business drivers to reduce costs and optimize the use of resources, external pressures are increasing each year. Real time tax settlement Tax authorities are increasingly requiring real time settlement of tax liabilities rather than accepting settlement through the year-end tax return process. Penalties for late payment will only increase. Reputational risk There are greater demands on country tax authorities to maximize revenues, and targeting organizations that move employees across borders offers rich pickings. Improvements in technology enable closer alignment between immigration and tax authorities, increasing the risk of noncompliance being identified and penalties imposed. 8 9

6 Questions you should be asking about your shadow payroll How much do we pay in employment taxes for our international employees? How do we know this is the right amount; what steps are we taking to minimize it? What resources are involved in the employment tax calculation process; what is the cost? Are we sure that we are up-to-date and comply with the local employment tax laws? How do the costs associated with international employees get recorded in the books? Do our accounts match the employment tax filing; what future liabilities are building up? How many internal resources are involved in intercompany rebilling and accounting; what is the internal cost? 10 11

7 How Certino manages the shadow payroll Certino is a comprehensive employment tax management system that covers the whole spectrum from pre-move planning, through shadow payroll calculations and intercompany rebilling to the posting of transactions in the accounts. We estimate that Certino will reduce employment tax costs by 20% in the first year. We take a fully integrated approach, covering global mobility, employment taxes, payroll and finance, together with a close collaboration with the corporate tax function. We can accept data feeds from any system and data can be uploaded into our platform from multiple sources, in multiple formats, avoiding onerous and costly consolidation requirements for our clients. We typically on-board clients within 3 months and can process shadow payroll calculations in 48 hours, which is faster than any existing solution. Certino is cloud-based and enables a fully automated process that is both secure and compliant. Automated shadow payroll, intercompany rebilling and accounting process Automated sense check and reconciliation processes at each stage Extensive reporting system 12 13

8 How the technology works: our five stage process We estimate Certino will reduce employment tax costs by up to 20% in the first year 1. Gathering the data Encrypted data sent directly to Certino from the source systems without any modification required. 2. Consolidation Multi-level validation and automated sense checks create a single source to feed into shadow payroll and rebilling systems. 3. Shadow payroll Payroll calculations by country, based on a consolidated file and preset country rules. Aggregated reports are automatically sent to the right people. 4. Inter-company rebilling Costs are automatically allocated to the right entity and cost centre. Certino is fully integrated with your corporate tax structure. 5. Reporting 24x7, flexible, client-driven reporting available on a self-service basis

9 The benefits of working with Certino (part 1) The benefits of working with Certino (part 2) 1. Shadow payroll Real-time delivery. Automatically optimises taxes. Minimizes complexity. Greater accuracy. Reduced liabilities. Fines eliminated. Compliance enhanced. Real-time regulatory updates. Reduced costs. Fully auditable. 2. Inter-company rebilling Reduces time, resource and cost. Early warning system for P&L owners. Supports shadow payroll system. Enhances accuracy of accounts. Provides a full audit trail (defends audits). Supports compliance. Enables timely tax deductions. Improves cash flow in current year. Support BEPS

10 Our commitment to our clients We will work collaboratively with you to connect HR, finance, payroll and tax to enhance all aspects of your international employment tax management. We will reduce your employment tax costs by up to 20% while simultaneously reducing tax compliance risk. We will reduce the total costs of managing your international employment tax liabilities by more than 50%. We will provide greater accuracy, visibility and control of all costs associated with your international employees. We will simplify all aspects of managing your shadow payroll. ON BEHALF OF CERTINO Richard McBride, Managing Director 18 19

11 Industry feedback There is a genuine opportunity for a solution which will demystify and enhance shadow payroll compliance with shorter transaction times, yet with reduced and transparent end-to-end costs. An automated shadow payroll solution reduces your business risk and cost, ensures you report the right information in real-time from day one, and enables you to make better business decisions. Finally, there is a cure to one of the biggest headaches in mobility and it even saves you money as well. At last the mobility industry has a proven solution through Certino to mitigate what is one of the least discussed yet biggest risks within mobility. Shadow payroll is an important hygiene factor in mobility programs. The option to automate and outsource it, benefits mobility teams so that they can focus on more strategic topics. Andy Seear Global Head of Employment Taxes, AIG Damian Walsh Partner, Heidrick & Struggles Mark Derksen Head of International Mobility, Arup Simon Rogers Managing Partner, Talent Mobility Search Chris Debner Founder, Strategic Global Mobility Advisory 20 21

12 The people behind Certino Richard McBride Didier Charreton Founder & Managing Director Richard is a highly experienced HR executive, chartered accountant and chartered tax adviser with a deep expertise in all aspects of global mobility, international employment tax and reward. He has extensive practical knowledge of efficient tax and social security solutions within the context of an ever-changing environment with the practical insight, experience and knowledge of making significant savings through process improvement. 22 Chairman & Co-founder Richard has a wealth of experience over 25 years, across a variety of industries including oil & gas, engineering and manufacturing, with a sustained record of delivering results and cost savings through innovation in the management of cross-border moves. Prior to founding Certino, Richard set up and led the global mobility function at Baker Hughes, delivering more than USD 250 million in employment tax cost savings over eight years ( ). Didier is currently the Chief Human Resources Officer at Anglo American, the London-based mining group with operations in Southern Africa, Australia, Canada and Latin America. Previously he was Chief Human Resources Officer at Baker Hughes, the oil & gas company employing 60,000 people in 90 countries. During his eight-year tenure, he worked with Richard to establish a best-in-class global mobility function, which proactively managed a population of 3000 international employees and returned significant financial benefits to the company s bottom line. Prior to joining Baker Hughes, Didier was the Chief Human Resources Officer at Coats plc, where he managed the migration of the company s production infrastructure to Asia. Before this, he spent 12 years at Schlumberger in several regions gaining firsthand experience of the challenges associated with international mobility. After 30 years of an international career, Didier decided to capitalise on his experience to participate in the creation of Certino. 23

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