Take the time and trouble out of international employee rebilling

13 September 2020 | International Tax

Take the time and trouble out of international employee rebilling

Richard McBride

Inter-company rebilling processes for the costs of international employees (‘rebilling’) are complex. They demand a degree of internal resource and time. Costs incurred from various international employee assignments around the world have to be collated and recharged to the appropriate legal entity and cost centre within a reasonable amount of time.

This sounds sensible enough and it’s a logical sequence of events. However, the disparate and disconnected nature of these costs can make them incredibly difficult to process accurately, particularly for employees who move frequently and/or whose costs need to be recharged on a timely basis e.g. to meet project accounting deadlines.

Typically, internal inconsistencies between raw data, processes, IT systems and physical locations can mean several rebilling attempts are required to produce a final result. As well as being inefficient and frustrating, such delays are unhelpful because all the while, employees continue to move between countries for different assignments. Rebilling never quite catches up, so there is a discrepancy between what is happening in real-time, and what’s being tracked and rebilled.

This discrepancy creates confusion. Employee costs may end up being recharged to one country using one set of rules, yet the employee is actually moving around between several, with multiple rules. The longer this is left unchecked, the harder it is to reconcile the actual position.

And it’s not just resource that suffers. Traditional enterprise IT infrastructure is typically configured to manage each employee in one location at a time and rebilling is processed based on these assumptions. It’s therefore complex and time-consuming to have to use that same infrastructure to manage multiple locations simultaneously. It can also get expensive. Where rebilled costs are used to calculate/report employment taxes in the receiving location, the problem is compounded by taxes being paid in the wrong location, which all adds up to extra costs and effort in trying to put things right.

It all adds up to a lot of unnecessary hassle, which can impact your bottom line and even your reputation.

Because Certino comprehensively configures all criteria for accounting and rebilling from the outset, all this confusion and effort is avoided.

Every individual element of your rebilling processes and requirements is captured in one place, regardless of the number of people or locations involved. Then, as they move around and things change, our automated system continues to track them accurately and can be updated as they go, ensuring rebilling is right first time, in real-time. So, there are no frustrating extra admin costs, wasted resources or unplanned duplication and tax leakage from having to constantly correct rebilling costs.

Contact Certino and we’ll help you solve your shadow payroll rebilling challenges.

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