Shadow Payroll Handles Taxes, Protects Wages for Global Employees

Shadow payroll helps mulitnational employers meet their global tax obligations and can help prevent wage losses for employees working abroad, a tax expert said July 11.

Multinational companies use shadow payroll to meet the tax requirements of countries that their employees work in while abroad on assignments, said Brooke Saulsbury, Expatriate Services Senior Tax Manager for KBF CPAs LLP. The tax obligations of these jurisdictions, or host countries, differ from those of an employee’s home country.

Shadow payroll complements primary payroll, which is the process used where the employee is being paid, she said. In most cases, employees are paid ...