Dec 26, 2021 3 min read

The new era of expat payroll

Did you ever notice?

Why managing payroll for expatriate employees has been a significant challenge for global mobility and payroll specialists.

Out of all the zillion challenges a payroll specialist face, these are the critical ones

What is hypo tax?

It is short for hypothetical tax which can occur when employees work on international assignments and are seconded to another tax jurisdiction for a finite period.

What is gross-up?

It refers to the additional money an employer pays an employee to offset any additional income taxes that need to be withheld from payment.

The complexities that surround these challenges have created a whole industry of global mobility and tax specialists who address these challenges and reap the benefits through massive fees.

The world of expat payroll continues to be shrouded in mystery that no one wants to question until now.

mercans global reach

So why has expat payroll remained complicated and expensive?

The answer is simple.

1) Significantly complex calculations

Running payroll calculations in the context of a single country is straightforward.

However, generating simultaneous payrolls in two jurisdictions and then reconciling and consolidating these calculations in different currencies is not easy.

It requires extensive manual labour to track, reconcile and manage.

2) Epic taxation expertise

Payroll specialists need to ensure that employees are neither underpaid nor overpaid, especially since these calculations involve gross-ups, hypo taxes as well as home and host country draws.

In fact, the process is equivalent to consolidating the financial results of two companies.

How has Mercans been able to automate expat payroll calculations and slash its costs while other payroll providers charge exorbitant fees for expat payroll?

The solution is straightforward

123

Mercans’ HR Blizz TM is a global payroll suite which enables native tax calculations for 160 countries across the globe.

This means that when a client sends an employee from one country to another, that employee’s payroll calculations will be processed on HR Blizz in both countries.

We then convert the calculations to a single currency, apply the tax rules of the host and home country, process automatic gross-up calculations and consolidate the results of these calculations. All of which happens in nanoseconds. Automatically.

This is the new era of expat payroll where massive fees for global mobility and expat tax advisory are history.

Welcome to HR Blizz TM

Welcome to a world of global payroll automation and speed.

logo

laptop

mercans.com/HRBlizz

Most viewed posts

View all posts

Everest Group names Mercans as a Star Performer in MCP Solutions As...

The Everest Group lauds Mercans' service capabilities and strategic approach

Nov 23, 2022 3 min read

Libya – Social Security Contribution Percentage Change

The contribution rate has been increased for all nationalities including Libyans but Pakistanis are exempted.

Nov 23, 2022 1 min read

Mercans Increases Focus on Global Payroll and Carves-Out Recruitmen...

Mercans has separated its talent management and HR advisory businesses from its software and managed payroll operations.

Nov 21, 2022 2 min read

Lebanon – Amendment to sickness and maternity ceiling amount

On 25 October 2022, the Lebanon Ministry of Finance issued a decree to modify the ceiling amount for sickness, maternity, and family allowance contributions. The sickness and maternity contribution ceiling amount has been increased from 5,000,000

Nov 16, 2022 1 min read

IR35: An Ultimate Guide To UK’s Tax Laws

IR35 is a set of rules that are designed to identify contractors and businesses which are avoiding paying the appropriate tax by working as ‘disguised’ employees.

Nov 11, 2022 10 min read

Mercans’ Response to a Critical Flaw in the Widely Used Apache Comm...

Text4Shell Vulnerability Mercans’ Response to a Critical Flaw in the Widely Used Apache Commons Text Library A recently patched vulnerability in Apache Commons Text made headlines this week. This vulnerability, dubbed Text4Shell or Act4Shell, i

Oct 27, 2022 3 min read