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Demystifying the Expatriate Assignment Process

VIEWS: 10 PAGES: 75

									                                 Meeting Agenda
Demystifying the Expatriate Assignment Process
                                 Carol-Ann Simon, Perkins & Co

     Emerging International Relocation Program
               Issues, Risks and Best Practices
                           Gary P. Tober, Garvey Schubert Barer

              Global Assignment Policy Overview
                                             Joseph Willis, Nike

        Improve Effectiveness of Global Mobility
                                 Jennifer Fu, Banfield/Mars, Inc.

                        Destination Service Provider
       Delayne Romson, International Expatriate Consulting, Inc.
                                                           Carol-Ann Simon
                                                  Perkins & Co, Shareholder
Carol-Ann is a tax shareholder and director of our Expatriate Tax practice group. With over
25 years of experience, in the US and Canada, Carol-Ann has the unique ability to
understand the dual-country implications of a foreign assignment. Her expertise includes
coordinating global tax compliance, tax effective compensation, cross border planning,
employee relocation issues and tax equalization policies. Her clients have included
hundreds of international businesses ranging in size from family-owned to large
multinational companies.

Most recently, Carol-Ann obtained Certifying Acceptance Agent (CAA) status with the IRS, allowing her to assist
foreign nationals in the applications for Individual Taxpayer Identifi cation Numbers (ITIN). Carol-Ann’s
certification will streamline the process of obtaining an ITIN as she will be able to locally review the original
documents necessary and certify the application for the IRS.

Prior to joining Perkins & Company, Carol-Ann was the partner in charge of BDO Seidman’s Expatriate Tax
Services group and served as BDO Seidman’s U.S. liaison to the BDO International Center of Excellence for
Expatriate Tax Services. In addition to her time with BDO, Carol-Ann developed her abilities with several of the
top four accounting fi rms in the US and Canada, including Ernst & Young.
Demystifying the Expatriate Assignment Process

                                 December 6, 2011
                         Portland Relocation Council Meeting
Agenda

• Outbound Expatriates
  – How to determine cost differentials
  – Elements of the assignment contract
  – Estimating the overall cost to the company
  – How to Pay
  – Certificates of Coverage
  – Tax equalization
Agenda (Cont’d.)

• Inbound Expatriates
  – Local hire vs. temporary assignee
  – Split payroll considerations
  – Tax implications of various immigration visas


• International Tax Updates
Outbound Expatriates
Cost Differentials

• Most temporary assignments abroad attempt to
  keep the assignee economically neutral.
• Measure four categories of cost differentials:
   – Housing
   – Cost of living
   – Transportation
   – Income taxes
Cost Differentials (Cont’d.)

• Helpful if you can obtain independent data
  for the first 3 categories
• There are specialized cost information
  providers that can supply this for you.
Elements of the Assignment Contract

• Who is the employer company?
• Is the employee “on loan” to host location?
• Assignment length can have tax
  implications. Key cut-offs:
  – 6 months
  – 1 year
  – 5 years
• Keep base salary “pure”
   – Denote allowances separately
• Method of payment can make a tax
  difference (e.g. housing)
• Description of your tax equalization process
   – Assignee agrees to hypo tax withholdings
   – Tax compliance process & provider
• Assignee signs agreement that all tax
  advances you make on their behalf are
  considered debt to the company until settled
  through the tax equalization process.
• Make sure all terms are agreed before the
  plane leaves.
Cost to the Company

• Determine all potential assignment allowances and
  expense reimbursements
   – e.g. Home leaves, HHG/flights, temporary living
     (front & back end), visas, “look see” trip, storage,
     language training, schooling
• Data used by tax services provider to calculate all
  home & host taxes plus gross-ups
• Total costs can be used to obtain assignment
  approvals and set up cost accruals in budget.
Certificates of Coverage

• US expatriates on temporary assignment for their US
  employer can be exempt from host country social security,
  and stay in US FICA/Medicare System.
• Typically only lasts for assignments up to 5 years.
• US has agreements w/ 24 countries, more pending.
• Exemption from host country social security can be a
  signifcant savings for employer
   – Employee/employer portions, other countries’ systems
     can be much higher amounts
• Apply online
  https://secure.ssa.gov/apps6z/coc_db/allforms.html
How to Pay

  • Consider offering a “split” payroll. Some pay in the US,
    some from host location. (This will help reduce exposure to
    currency fluctuations.)
  • Also helps to manage home country responsibilities, such
    as pension contributions, social security taxes,
  • Suggest assignee set up an account with an international
    banker, to facilitate movement of funds from home to host.

  Note – will require some manual information gathering
  for payroll reporting in home and host locations.
Tax Equalization Policy

• Most companies have this as a companion
  to their relocation policy.
• Philosophy is that assignee is “no better or
  worse off” from a tax point of view
• Some companies are tempted to offer
  “protection” instead – assignee is “no
  worse off”.
• Disadvantages
  – Sets precedent
  – Tax benefit hard to predict
  – Benefits will differ between employees
  – Impedes mobility
Inbound Expatriates
Local Hire

• Many employees from abroad treated as local
  hires here.
• US tax rates are often lower, salary grids often
  higher than home country.
• Concept of tax equalization does not translate well
  in inpat scenarios – it’s a “US-centric” concept.
• Not exempt from FICA/Medicare unless have a
  home country certificate of coverage
Tax Implications of Various Immigration
Visas


• Most aliens working in the US with a non
  immigration work visa are fully subject to
  US income tax and FICA/Medicare tax
  (unless exempt by Totalization)
Special Rules

• J-1 Trainee
  – If paid from abroad, exempt from
    federal/Oregon income tax.
• F-1, M-1, J-1, Q-1
  – Exempt from FICA/Medicare, unless they
    have taken steps to be considered resident
    aliens.
  – Includes F-1 OPT (Optical Practical Training)
  – Working spouses not exempt
International Tax Updates

China
• Income tax rates have increased as of Sept. 1
• Social tax regime will now be applied to foreign
  employees for the first time
• Effective Oct. 15? Implementation?
Netherlands
• Tax relief for expats (aka the “30% ruling”) will be harder
  to obtain
• Specific expertise test hard to meet for younger workers
• Cross border commuters ineligible
Updates (cont.)

USA
• New FATCA form 8938 for 2011
• New foreign asset reporting form for individuals
• All foreign financial assets – goes beyond foreign bank
  account reporting
• Large penalties for failure to file
Questions?
                                               Gary P. Tober
                          Garvey Schubert Barer, Shareholder

GARY P. TOBER, a shareholder and member of Garvey Schubert Barer’s tax practice
group, is involved in tax and business planning for U.S. and foreign corporations,
partnerships and individuals, emphasizing the tax aspect of cross-border business
operations and investments transactions. Mr. Tober regularly presents seminars on
international tax topics to certified public accountants; teaches graduate school courses in
international taxation at the Golden Gate University; speaks at seminars on international
commercial agreements; chairs seminars on international law and taxation; and lectures on
international topics at various professional education programs. He is admitted to practice
in the State of Washington. Mr. Tober earned his B.A. at Denison University, his J.D. at the
University of Toledo Law School, and his LL.M in Taxation, at Washington University School
of Law.
          Portland Relocation Council
    Emerging International Relocation Program
        Issues, Risks and Best Practice

                    December 6, 2011


                       Gary P. Tober
                   Garvey Schubert Barer
         Portland, Oregon and Seattle, Washington


GSBlaw.com
Inadvertent Corporate Risks Associated With
Foreign Relocation of Employees


  I.   Foreign Tax Nexus
       A.   Corporate Tax Obligations in Host Jurisdiction
       B.   Exemption Provided by Income Tax Treaties

  II. Social Security Taxes
       A.   Totalization Agreements




                                                   GSBlaw.com   28
Inadvertent Corporate Risks Associated With
Foreign Relocation of Employees


  III. Corporate Implications of Employee Tax Obligations
     A.    Tax Filings
          1.   U.S.
          2.   Foreign

     B.    Tax Withholdings

  IV. Other
     A.    FBAR

  V. Legal Liability


                                        GSBlaw.com          29
Income Tax Treaties


  1. Business Profits - Baseline Definition:
     The business profits of an enterprise of a contracting
     state shall be taxable only in that state unless the
     enterprise carries on business in the other contracting
     state through a permanent establishment situated
     therein. If the enterprise carries on business as
     aforesaid, the business profits of the enterprise may be
     taxed in the other state but only so much of them as is
     attributable to that permanent establishment.




                                          GSBlaw.com      30
Income Tax Treaties


  2. Threshold Requirements is the Existence of an
     Enterprise.
       a. Almost any economic activity carried out by a resident of a
          treaty country creates an enterprise.

  3. Business Profits Generally Means Income Derived
     from any Trade or Business
        a. No direct counterpart in U.S. domestic tax law

  4. Only Business Profits Attributable to a Permanent
     Establishment will be Subject to Tax.
        a. Income from active business operations


                                               GSBlaw.com          31
Income Tax Treaties


  1. Permanent Establishment - Baseline Definition:
     For the purposes of this Convention, the term
     “permanent establishment” means a fixed place of
     business through which the business of an enterprise
     is wholly or partly carried on.
  2. If a U.S. company lacks a permanent establishment in
     the other treaty country, business profits derived in the
     treaty country will not be taxed by the treaty country.




                                           GSBlaw.com       32
Income Tax Treaties


  3. Criteria for Permanent Establishment
    a. Fixed place of business through which a resident of a treaty
       partner engages in industrial or commercial activity
        1)   Facilities
             a)   Place of management
             b)   Branch
             c)   Office
                  i.      Simenon v. Comm’r, 44 T.C. 820 (1965) – Home office
                          maintained in U.S. by French author resulted in P.E. under
                          U.S.-France income tax treaty




                                                           GSBlaw.com                  33
Income Tax Treaties


         d)    Factory
         e)    Workshop
         f)    Place of extraction of natural resources
         g)    Building site – depending upon length of project. Required
               length varies from six months to two years depending upon
               treaty.

       2) Exclusions
          a)    Storage facilities
          b)    Goods to be processed by another enterprise
          c)    Purchasing goods or collecting information
          d)    Activities of a preparatory or auxiliary character



                                                    GSBlaw.com          34
Income Tax Treaties

    b. Permanent Establishment by Attribution
       1)   Degree of authority of agents (i.e., employees are agents of
            their employer)
            a) Permanent establishment results if agent has general
                 authority and power to contract
                 i.   If agent’s activities are limited to exempted activities no
                      permanent establishment is created
            b)   No permanent establishment if agent is broker or
                 commission agent and independent
                 i.   Independent agent is one who is neither an employee nor
                      under the day-to-day control of the principal
       2)   Handfield v. Commissioner, 23 T.C. 633 (1955) found that U.S.
            distributor of postcards was filling orders from a stock of
            merchandise and thereby created a permanent establishment
            for a Canadian citizen.



                                                          GSBlaw.com                35
Income Tax Treaties


    c.   Non-fixed permanent establishment
         1)   Rev. Rul. 56-165, 1956-1 C.B. 849, holds that representatives of
              a French company who traveled continuously for two years in the
              United States had a permanent establishment, notwithstanding
              that the corporate representatives were merely demonstrating
              and taking orders for machinery.




                                                     GSBlaw.com            36
GSBlaw.com
                                                                        Joe Willis
                                                          Nike, Mobility Manager

Joe joined Nike as the Americas Mobility Manager just last October. Prior to Nike, Joe was
shoring up his Global Mobility experience at Broadcom where he served as the Global
Mobility Program Manager and prior to that at Sony Pictures Entertainment as the Sr.
Manager of Global Mobility. Joe’s working background also includes the MI Group,
Children’s Hospital of Orange County and British Airways. He graduated from the
University of California, Los Angeles with a B.S in Applied Geophysics and Space Physics.




                                                                             GSBlaw.com      38
Global Human Resources | Global Mobility




           Global Assignment Policy Overview

                                    Joseph Willis, CRP, GMS
                                       December 6, 2011
Global Human Resources | Global Mobility

                                       Global Assignment Types
   • Business Trip
       • Duration: < 3 Months
       • Not treated as an expatriate assignment
   • Short Term Assignment
       • Duration: 3 – 12 Months
       • Skill acquisition/personal development OR project assignment with defined end date
       • Fewer expatriate allowances
   • Developmental Assignment
       • Duration: 3 – 24 Months
       • Skill acquisition/personal development/global experience
       • Fewer expatriate allowances
   • Long Term Assignment
       • > 12 Months
       • Perform a job/career development/transfer of skills/global experience
       • Traditional expatriate allowances
   • Dual Career Assignment
       • Both spouses are employees on assignment
       • Some expatriate allowances are shared
                                                                                              40
Global Human Resources | Global Mobility


                               Expatriate Compensation

   • Balance Sheet Approach
          • Transferee is kept whole compared to “stay-at-home” income
          • Minimize impact of changing market conditions in the Host Country, such as exchange
            rates, tax rates and housing costs
   • Base Salary
          • Employee remains on Home Country payroll
          • Equal to the pay of domestic peers in comparable jobs at home location
   • Transfer Premium
          • Compensates for separation from home, relatives, and friends, and the particular
            difficulties of international services
          • Currently 12.5% of gross base salary, up to a maximum of US $12,500
   • Cost of Living Adjustment (COLA)
          • Differential to offset cost of goods and services at host location to maintain purchasing
            power equal to domestic peers
          • COLA is paid only if cost of goods and services at host location is greater than at
            home location
          • COLA updated quarterly on Feb 1, May 1, August 1 and Nov 1
                                                                                                        41
Global Human Resources | Global Mobility


                        Expatriate Compensation (continued)

       • Hardship Allowance
          • Additional compensation if working under unusually difficult conditions
          • Currently, 5% - 30% of gross base salary depending on location
          • Revised annually
       • Housing Norm Deduction
          • Employee’s contribution to housing cost via payroll deduction
          • Equals one-half of comparable housing in Home Country and consists of
            non-equity mortgage payments and property taxes or rent, plus normal utilities
       • Hypothetical Tax
          • Payroll deduction roughly equivalent to “Stay-at-Home” tax withholding
          • Calculated on annual gross base salary and other factors which affect
            Stay-at-Home Tax (such as insurance and pension contributions)
          • Hypo tax is not computed on transferee allowances


                                                                                             42
Global Human Resources | Global Mobility


                      Expatriate Compensation (continued)

   One-Time Payments
       • Relocation Allowance
          • One half of monthly salary
          • Intended to cover miscellaneous out-of-pocket expenses during relocation, ongoing
            expenses throughout the term of the assignment and offset incidental costs
            associated with the move back to the home location.
          • Paid via Home Country payroll

       • Spousal/Partner Allowance
          • Intended for spouse/permanent partner to enhance interests, education or career
            while away from home
          • One lump-sum payment at the beginning of the international assignment.
          • Additional payments may be made if assignment is extended.
          • Paid via Home Country payroll




                                                                                                43
Global Human Resources | Global Mobility


                       Scope of Services – Home Country

               • Payroll/Compensation          • Auto Loss-on-Sale or Lease
                 Administration                  Break
               • Policy Counseling             • Intercultural Training
               • Visa/Work Permits             • Language Training
               • Shipment/Storage of           • Immunizations
                 Household Goods               • AMEX/Expense
               • Insurance (Personal Effects     Administration
                 and Personal Liability)       • Will Preparation
               • Payroll                       • SOS/Travel Assistance
               • Tax Filing/Equalization       • Mail Forwarding
               • Medical Benefits              • Personal Long Distance
               • Property Management             Calls
               • Temporary Housing/Car         • Employee Store Shipments
                 Rental

                                                                              44
Global Human Resources | Global Mobility


                        Scope of Services – Host Country

               • Policy Counseling          • School Search
               • Visa/Work Permits          • Dependent Education
                                              Assistance
               • Temporary Housing
                                            • Local Transportation
               • Home Finding
                                            • AMEX/Expense
               • Language Training
                                              Administration
               • Intercultural Training
                                            • Tax Equalization/Services
               • Personal Long Distance




                                                                          45
Global Human Resources | Global Mobility

                                          Assignment Benefits

   • Home Leave
       • One home leave per year, after one year of overseas service for employee and dependents
       • Up to $1,000 for car rental
       • Intent of home leave is for employee to travel to home country to maintain business and
         personal connections
       • Employee may elect an alternate destination. Reimbursement provided for amount equal to
         cost of airfare to Home Country.


   • Rest and Relaxation Leave
       • For employee and dependents assigned to hardship locations
       • One R&R trip per year while on assignment
       • Transferee selects destination
       • 5 working days provided for R&R
       • Forfeited if not used during the year and cannot be combined with home leave




                                                                                                   46
Global Human Resources | Global Mobility


                                 Assignment Benefits (continued)

   • Relocation Assistance – Expatriation & Repatriation
   • Dependent Education Assistance
       • Children are eligible one year prior to the required starting age with a minimum age of 3
         years (example: if required school attendance age in the Host Country is 5 years, Nike
         would begin providing education assistance at age 4)
       • Education assistance provided for accompanying children through age 18
       • Reimbursement provided for the following education expenses:
          • Tuition and/or registration fees
          • Cost of school bus or daily public transportation to and from school
          • Books
          • Laboratory fees




                                                                                                     47
Global Human Resources | Global Mobility

                                 Assignment Benefits (continued)
   • Housing
       •   Temporary housing provided in Home and Host Country, if needed (up to 30 days in each location)
       •   House-hunting trip may be provided, depending on Host Location Policy
       •   Housing allowance is per Host Location Policy
       •   Furniture, appliances, utilities are per Host Location Policy
   • Transportation
       • Per Host Location Policy
       • Some countries provide transferee with a vehicle to drive
       • Other countries provide a car and driver
   • Intercultural Training
       • Assistance with managing cultural adaptation and lifestyle adjustments due to transition
   • Language Training
       • Language lessons provided to transferee and eligible dependents to learn the official business
         language of the Host Country
   • Healthcare
       • Global Health Plan – If Home Country coverage is not valid international, employee needs to be moved
         to a Global Health Plan (Cigna International, Aetna Global, etc.)




                                                                                                                48
Global Human Resources | Global Mobility




                                           Questions




                                                       49
                                              Jennifer Fu
                                       Banfield/Mars, Inc.
                   Global Mobility & Immigration Manager
Zhiyan “Jennifer” Fu is a global mobility and immigration manager with 8 years of program
management experience in several multinational corporations including Nike Inc., Vestas
Wind System – Americas and Banfield/Mars, Inc. Her mobility experience covers relocation,
corporate policy alignment and process set up, immigration and visas, international tax
equalization program and social security tax management for expats and local to local
transferees. Jennifer grew up in China. After college with two B.A. degrees and having
worked for a couple years at Procter & Gamble, China, she came to the U.S. for graduate
school. Jennifer has a Master of International Management degree and GPHR; she has
worked in non-profit, governmental and corporate sectors in the U.S.
Improve Effectiveness of Global Mobility


 The case of Mars Inc’s Corporate Mobility Program
                Banfield Pet Hospital’s Parent Company
Mars, Inc. Global Mobility Mission Statement


                 Global mobility in Mars enables business
                    success and provides unique experiences
                    to enhance the lives of associates and
                    their family




     2/28/2012   Zhiyan Jennifer Fu, Manager, Immigration Program   53
Mars, Inc. Global Mobility Guiding Principles

•   As a global business, international mobility is essential
    for our future senior business leaders to be most
    effective.
•   Global mobility policies should be a positive element in
    helping to ‘attract, retain and motivate’ associates and
                                                                           As a global business,
    therefore need to be competitive, both internally and
    externally.                                                            international mobility is
•   Moves should contain a mutual benefit for the business,
    the associate and their family. Moves will be
                                                                           essential for our future
    differentiated, based on the business need and associate
    personal development. Appropriate care and support                     senior business leaders
    will be provided.
•   Associates who are mobile will be recognised and                       to be most effective.
    provided with enhanced opportunities to learn, grow and
    achieve.
                                                                                   • Communicate purposes
•   Clear and timely communication will be provided on all
    aspects of a move to allow all parties to make an
    informed decision and to clarify ongoing support.                              • Support corporate goals
•   The value of the global mobility programme will be
    tracked and evaluated to ensure that it delivers business                      • Expected impact
    value and long-term leadership development.




         2/28/2012                    Zhiyan Jennifer Fu, Manager, Immigration Program             54
Global Mobility Framework
    Higher           Career Development                                            Strategic
                Target associates :                                  Target associates :
                 High Potential associates (as per                   Top roles
                identified development action in MDR)                Mobility Types:
                 Personal Performance Matrix 5,7,8,9                • ‘Long-Term Assignment’ (3-5 years)




                                                                                                                     Corporate
                Mobility Types:                                      • ‘Permanent Relocation’ (>5 yrs)
                 ‘Short -Term Assignment’ (3-12 mths)               • ‘Commuter’
                 ‘Long-Term Assignment’(2-3 years)                  Decision-maker:
                Decision-maker:                                      • Recruiting President (with recommendation
             • Recruiting GM (with recommendation                    from Global Talent Director)
             from Host/Home P&O)                                     Package:
 Development Package Cost:Standard package                           • Enhanced package / support
    value    (Zones 5, 6); Lighter package ( Z7)




                                                                                                                     VALUE
                      Associate-initiated                                      Professional
                Target associates :                                  Target associates :
                Associate-initiated moves which meet                High Professional (as per MDR)
               business need for resource at reduced cost            Personal Performance Matrix 4, 7




                                                                                                                     Host
               Mobility Types:                                       Mobility Types:
                ‘Permanent Relocation’                               ‘Short –Term Assignment’ (3-12 months)
               Decision-maker:                                        ‘Long-Term Assignment’ (c.2-3 yrs, max. 5)
               • Recruiting line management                           ‘Commuter’;’Permanent Relocation’(>5 yrs)
               Package Cost:                                         Decision-maker:
                Local terms, some relocation                         • Recruiting GM (with recommendation from
                support                                              Host/Home P&O)
                       global mobility                               Package: Standard package (all Zones)
   Lower                                               Business value                                            Higher

         2/28/2012                       Zhiyan Jennifer Fu, Manager, Immigration Program                   55
Improving the Selection Process

 Quality and “Fit”:

 • Only consider candidates identified through the Mars
   Management Development Review (MDR) and/or
   endorsed by Home/Functional Sponsor
 • Require cross-cultural assessment before the interview
 • Use competency-based questioning to assess ability to
   adapt to a different culture
 • Understand any spouse/partner/family issues which may
   block or undermine mobility before making final offer




      2/28/2012       Zhiyan Jennifer Fu, Manager, Immigration Program   56
Improving the Selection Process

 Business Sponsor: (Home or Functional Manager)

    • General Manager, Business Head Level

    • Only endorses high potential associates (HiPo) or
      subject-matter experts (HiPro) – challenges other
      moves!

    • Holds briefings with associate before assignment
      (delegates for junior assignees)

    • Ensures a suitable role after the assignment

    • Accountability in Sponsor’s annual objectives



      2/28/2012      Zhiyan Jennifer Fu, Manager, Immigration Program   57
Repatriation – Roles and Support


 • Regular ‘Traffic Light’ reports from Global Mobility Team GMT
   Home People & Organization and line manager

 • Proactive re-entry planning (particularly in last 6 months)

 • Management Development Reviews (MDRs)

 • Returning assignees factored into home budget

 • Business trip back to Home unit in last 6 months

 • Ensure re-entry ‘welcome’/debriefing / knowledge transfer




                  global mobility


      2/28/2012                     Zhiyan Jennifer Fu, Manager, Immigration Program   58
Streamlining Processes and Roles

                                         GMT – Strategic
                                  • Set strategy and policies
                                  • Plan resources, biz cases
                                  • Monitor recruit/selection
                                  • Exception approvals
                                  • Corporate governance
                                  • Actively initiate and monitor
                                  repatriation                                          HOME – P & O
          HOST – P & O            • Reporting and tracking                   • Ensure GM/Functional sponsor’s
                                  • Vendor management                        endorsement
• Aid selecting right candidate
• Initiate assignment                                                        • Educate ‘new sponsor’ roles
• Track exceptions and report                                                • Provide data to GMT
• Arrange induction - external                                               • Ensure expats on MDR agenda
• Annual pay/variable pay review                                             • Annual pay/variable pay review
• Ensure expats on MDR agenda                                                • Support Home / Functional
• Support/Coordinate repat.                                                  sponsor to repatriate/re-deploy
• Vendor management                                                          expats




           2/28/2012                 Zhiyan Jennifer Fu, Manager, Immigration Program              59
Streamlining Global Service Providers



 Managed by GMT in the U.S.
 •Tax: one provider
 • Relocation & Destination Services: One provider
 • Immigration: One provider


                     Aligned one contact group
          Aligned one online tool to collect assignee info.
             Aligned service cost control and reporting
                   Aligned one location for history



    2/28/2012              Banfield Pet PP Template           60
Program Managing Principles

 1. Seek executive commitment to the policies/process
 2. Flexibility: Documenting guidelines vs. Sticking to policies
 3. Clear expectations for assignees:
        1.     Verbal, written support
        2.     Specific instructions
        3.     Centralized exception management
 4. HR’s strategic involvement: Consult with Global Mobility
    Team once an opening is known/prior to discussions with
    candidates
 5. Avoid making promises to associates
 6. Challenge ‘lazy resourcing’
 7. Avoid negotiations over the package
 8. Support assignees’ re-integration



       2/28/2012             Zhiyan Jennifer Fu, Manager, Immigration Program   61
Questions and Discussions




    2/28/2012   Zhiyan Jennifer Fu, Manager, Immigration Program   62
                                                                        Delayne Romson
                            International Expatriate Consulting, Inc.
                                                       SCRP, SGMS
•Learned mobility and immigration in a corporate environment (Apple)

•Took that education and moved to a consultant status. Current projects at this time
include:
      −Several Corporate and DSP Provider databases - design, develop and maintain

      −Consultation on current or new Corporate International Mobility programs - several
      corporate clients

      −Industry Consultant/Project Lead for International or Immigration RFP design,
      execution and program transition

      −Corporate Mobility Manager for a Corporation managing all policy writing, process
      design and global movement of all employees, including immigration.
          Delayne Romson, SCRP, SGMS
International Expatriate Consulting, Inc.
                 delayne@ieconsult.com
   Considered a “local expert” in the New
    Country or location.
   Provides a second opinion on housing and
    other issues
   Services and service descriptions will vary
    from country to country.
   Costs will vary from country to country
   Always charged for outside of the U.S.
   Issue: Finding the best DSP in the area you
    are going to!
   Preview Trips – (not always provided)
    ◦ Intake Form - The employee usually fills out this DSP
      form that notes personal preferences
    ◦ Benefits list - Employer may note specific package
      benefits and housing allowance, etc.
   Final Move –
    ◦ Authorization to reside in the Country:
      Employee’s work permit and dependent visas
      Local Registration – could be tax, could be province
    ◦ Credit - If Company is not sponsoring housing, car or
      school services or does not have a program to assist the
      employee in establishing credit in the new country,
      perhaps a list of recommended documentation that
      could be useful from the previous country before move
      takes place.
   Immigration – In many countries the DSP can be
    authorized to perform these services.
   Home Finding/Home Search -
    ◦ International –
       RENTAL housing search - takes EE out, reviews contracts, knows
        school areas, commute times, etc.(1-5 days). Works with
        Employer if LTIA contracts need to be signed and funded.
         Country may not have MLS type services
         Country/Employer may require DSP separate from Realtor
       Home Purchase –
         Company rarely covers home purchase but if they do, very specific
          country fees are covered.
         Employee may or may not be connected to a realtor but is on their
          own.
    ◦ U.S. –
       Renter Services charged
       Home purchase a home no charge to Employer
   Orientation Services -Overview of the local area based on
    work or school locations.
    ◦ International – always charged for services
    ◦ U.S. – Some form of this could included in rental and n/c for buyer
   Settling In Services –
    ◦ Application for all registrations (SSN), utilities, etc.
   Children's Education Services –
    ◦ International – Charged for all services
       School search based on age, special needs, location, transportation,
        private or public schools.
       Usually private schools so the children can integrate back into the Home
        Country system upon return.
    ◦ U.S. –
       DSP sometimes includes information in welcome packet
       Further search that requires applications, language, specific needs are
        always charged for.
   Language Services –
    ◦ International – Usually offered and paid for employee and
      spouse. Children are case by case.
    ◦ U.S. – Sometimes offered if English is second language
      (ESL).
   Transportation Services – Assistance with setting up
    auto leasing or car and driver
    ◦ International – DSP has the connections. Who pays is based
      on the package.
    ◦ U.S. - based on travel department set up
   Driving lessons – Sometimes required/needed!
   Monthly housing support – hot line for assignees
    (usually exec) that are in long term housing.
   Other – Basically anything you can think of that you
    need hired to have done in the New/Host Location
 U.S. – DSP services tends to be deemed as
  “less valuable” to incoming international.
 Home Sale/Home Purchase services declining.
 Private School fees – EE pays part if the
  children were in a private school previously.
 Cultural Information – is not Cultural
  Training.
 U.S.  tends to assume foreign national
    may not need assistance here.
                          Connect for Questions
                          Carol-Ann Simon, Perkins & Co
                       csimon@perkinsaccounting.com, 503-221-7580

                    Gary P. Tober, Garvey Schubert Barer
                                 GTober@gsblaw.com, 503-816-1415

                                          Joseph Willis, Nike
                              Joseph.Willis@nike.com, 503-671-3524

                          Jennifer Fu, Banfield/Mars, Inc.
                               jennifer.fu@banfield.net, 503-922-5202


Delayne Romson, International Expatriate Consulting, Inc.
                               delayne@ieconsult.com, 866-417-8293

								
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