EXPAND YOUR HORIZONS
Make the Right Connections
Everything You Wanted to Know About
Short-Term Domestic Assignments
Today’s Presenters:
• Craig Anderson, C.E. Anderson & Company
• Kevin Shimkus, Deloitte
• Dawn Higgins, Nestle Purina PetCare Product
Technology Center
TEMPORARY DOMESTIC ASSIGNMENTS
Short Term
Assignments
Long Term
Assignments
• Generally – assignments
of less than one year,
then the employee
returns home.
• A less than permanent,
shorter duration
relocation in which the
employee returns back
home upon completion of
the assignment.
SHORT TERM ASSIGNMENTS
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What they are?
When are they used?
How will usage volumes change?
Why doesn’t everyone use them?
FORMAL POLICIES
ASSIGNMENT PURPOSES
PROJECTED USAGE
ASSIGNMENT CHALLENGES
EXPAND YOUR HORIZONS
Make the Right Connections
Domestic Travelers : Setting the Stage
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•
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•
Short term business travelers
Frequent business travelers
Short term assignment
Long term assignment
Relocation
Tax Considerations
• Federal
– Tax home
– Taxation of travel expenses and per diems
• State & Local
– Withholding
– Different definition of “wages”
– Deferred compensation
– Tax resident
Tax Home
• Rev. Rule 60-189
• Traveler must be “away from home” for
travel expense to be excluded from
income
• Principal place of business
• “Tax turtle”
Amount of Time Away From Home
• Rev. Rule 93-86
• Taxpayer has relocated “tax home” when
they have exceeded 12 months in a
location or when there is an expectation
for them to exceed 12 months in that
location.
Short Term Business Travelers:
State to State
California
Connecticut
No De Minimis
threshold
Very aggressive regarding non-resident wage withholding
and tax remittances
Illinois
De Minimis threshold
14 days
December 2, 2009 CT issued Announcement 2009(9)
requiring employer wage reporting and tax withholding for
non-residents working 14 or more days in CT throughout
the year
New York
No De Minimis
threshold
Has quite ‘favorable’ non-resident guidelines — Especially
if company is not located anywhere in IL
De Minimis threshold
14 days
Uses an informal calendar year de minimis threshold for
state tax withholding for a non-resident working in New
York as reported in its state Field Audit Guidelines issued
July 1, 2004
State Tax Issues
• Different definitions of “wages”
– Health savings accounts
– Domestic partner benefits
• Not all states accept Federal W-4
• Deferred compensation & equity
compensation
Local Tax Issues
• Local income tax withholding
• Local employer taxes
Contact Information
Kevin Shimkus
Deloitte Tax LLP
312-486-3254
kshimkus@deloitte.com
EXPAND YOUR HORIZONS
Make the Right Connections
Nestlé Purina PetCare
Our Mission
To bring several employees (40+) to the St.
Louis Headquarters Office to work on our
SAP implementation project.
How to we plan for this?
Nestlé Purina PetCare
What’s our current policy?
Do we have a policy?
Who needs to help me?
Nestlé Purina PetCare
How to Plan:
• Identify plans / practices already in place
• Gather your resources
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Partner with Management (HR, Business, Factory)
Partner with Legal
Partner with Relocation Provider
Partner with Finance / Tax / Audit
Partner with Service Providers - Corporate Housing,
Rental Car Company
Nestlé Purina PetCare
Develop our Policy:
• Expanded on plans / practices in place
• Partnered with key resources
• Communicated the policy and the process
• Face-to-Face meetings
• Email
• Offered project incentives
• HR Manager managed and owned the process
Nestlé Purina PetCare
Policy Benefits Offered:
• En route expenses
• Return trips home every week or month
• Housing accommodations (pet friendly furnished corporate
apartment or extended stay hotel)
• Rental car or mileage reimbursement for personal car
• Per diems
• Miscellaneous expenses allowance (start and end of assignment)
• Tax preparation and tax equalization assistance
• Family accompaniment (special circumstances)
Nestlé Purina PetCare
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Challenges:
Tax compliance and expense tracking
Family and personal issues
Communication of policy changes
From an HR perspective – keeping employees
engaged, morale
Nestlé Purina PetCare
Lessons Learned:
• Over communicate
• Policy updates, changes, etc.
• Involve partners early and often
• Evaluate the policy, program
EXPAND YOUR HORIZONS
Make the Right Connections
POLICY BENEFITS FOR
TEMPORARY DOMESTIC
ASSIGNMENTS
DOMESTIC RELOCATION POLICY
RESEARCH
TEMPORARY DOMESTIC ASSIGNMENTS
Trippel Survey & Research, LLC
© January, 2012 (Used with permission)
No part of this work may be reproduced
Copies of the report may be purchased by contacting
Trippel Survey & Research, LLC at 501 922-4000
Thank You for Attending!
Questions?