Audit & Riskmanagement
Audit & risk management
While companies are able to manage the administration of payroll and HR processes for locally employed and locally active employees without any difficulty, expatriates and internationally active employees (e.g. commuters or “multi-state workers”) constantly constitute a challenge.
There is often a lack of expertise in the company because due to the low number of internationally active employees relative to locally active employees, the necessary know-how cannot be consolidated to a sufficient extent and constantly maintained in the company due to reasons of efficiency and cost.
Hence, CONVINUS increasingly assists companies with the risk assessment of their international assignments. In this case, the relevant international circumstances are usually evaluated with regard to tax-related, social security, and labor law risks. In a second step, we work with the company to determine which risks can and/or should be eliminated, and how the processes can be optimized for future global mobility cases.
Furthermore, we are seeing an increase in audit requirements for payroll accounting for expatriates and internationally active employees. One particular difficulty here is the correct representation of the contractually agreed compensation on the payroll and the legally compliant handling of compensation components with regard to social security as well as local and international taxes.
Our experience shows that an early audit avoids a large number of other difficulties and follow-up costs related to international assignments. When payroll accounting, social security, and taxation issues are correctly approached at the beginning of the posting, or corrected in a timely fashion, the administrative costs related to the international assignments of employees can be significantly reduced.
Contact us today for your audit of expatriate and payroll aspects so that risks can be recognized and minimized.
Our key consulting services:
- Compliance checks on existing global mobility cases with regard to taxes, social security, labor law, and payroll
- Comparison of payroll with contractual terms agreed upon and adaptation of payroll
- Reversal of salary payments for incorrect payouts and the incorrect representation of salary components
BEST PRACTICES - A small selection of cases from our day-to-day work:
- Risk evaluation with regard to the erroneous payment of social security contributions in Swiss companies and its impact on the payroll
- Correction of payroll accounting for employees assigned to France
- Rectification of social security coverage for German cross-border commuters and the correction of payroll accounting
- Correction of tax payments and of withholding taxes for employment in Switzerland and abroad
