The CapRelo Insider provides a glimpse into the news, trends, and happenings affecting the global mobility industry. Our experienced client services team provides updates and analysis directly to our clients, with policy and program recommendations tailored to their companies and employees. To learn more about how we can help you, contact us today.

To meet the needs of your mobile workforce, we recommend continuous evaluation of policy allowances and benefits. Below we outline new challenges and changes we have observed in the field. Contact us if you would like to discuss how we can help you adjust your policy or program.

Something Just for You

The Benefits of Creating a Strong Community of Leaders in Hybrid Work Environments

Building a strong community of leaders in your organization can lead to extraordinary results, including:

• Promoting a stronger sense of belonging
• Allowing for greater knowledge sharing
• Encouraging higher levels of performance
• Creating a culture of accountability
• Improving employee engagement

Research shows that employee engagement is directly linked to a company’s culture and value system. In fact, employee engagement levels can climb up to 72% when managers work well with each other. But building community in a remote or hybrid work environment may prove more challenging. Check out this infographic for 10 Ways You Can Build Leadership Communities in a Hybrid World of Work.

Industry Updates

US IRS Guidance on Withholding Taxes Paid by Employer

On January 14, 2022, the U.S. Internal Revenue Service (IRS) released a Chief Counsel Advice memorandum addressing whether an employer is eligible to receive a refund of income tax withholding paid on behalf of a tax-equalized assignee on a foreign assignment. This eligibility would apply to the year after the calendar year in which the employer paid the compensation.

The memorandum concludes that when an employer pays a tax-equalized assignee a stated amount of compensation and pays the federal income-tax withholding attributable to that compensation on behalf of the employee, the income taxes the employer pays to the IRS are considered withheld from the assignee. As a result, these income taxes may not be refunded to the employer after the calendar year in which wages are paid.

The Impact

For global relocation programs, the memorandum illustrates how important it is to have “reasonably accurate” hypothetical tax estimates, and to correct over-payments before year-end. It also confirms that withholding based on a hypothetical tax calculation does not constitute an “administrative error,” meaning that an employer may not generally correct an over-collection of income taxes after the close of the tax year.

Percentage of Equity-Rich Homeowners Soars to Record 42%

A report from CNBC cites pandemic-driven demand, record low supply and low mortgage rates conspiring to drive home sale profits to an average of $94,000 in 2021, up 45% from the previous year. Tappable equity grew by $2.6 trillion last year alone.

As Todd Teta, chief product officer for ATTOM, commented, “2021 will go down as one of the greatest years for sellers and one of the toughest for buyers.”

The Impact

Combined with high inflation, the added spending power this equity provides could keep demand (and prices) high, making it more challenging for relocating employees to purchase a new home at destination. To attract and retain the best talent, relocation programs and benefits need to be flexible. Consider offering down payment assistance or six-month extensions on home purchase benefits to allow employees to secure a long-term rental while they search for the right home. It may also be a good time to review your Cost-Of-Living Adjustment (COLA) program to ensure it remains competitive. For more creative ideas to make your programs more flexible, contact us today.

US STEM-Based Non-Immigrant, Immigrant Visa Eligibility Expanded and Updated

The Biden Administration has announced policy changes regarding international scholars, students, researchers, and experts in the science, technology, engineering, and mathematics (STEM) fields. These policy amendments apply to non-immigrants in the F-1, J-1, and O-1A visa categories.

The Department of Homeland Security also updated its policy manual on US Citizenship and Immigration Services adjudication of national interest waivers in employment-based permanent residence applications for scholars with advanced STEM degrees.

The Impact

These changes expand the options for foreign nationals working in STEM fields and increase the amount of time allowed on J-1 exchange visa status post-graduation. They also add employment pathways for qualifying individuals in the United States.

New VISA legislation

Earlier this month, the US House of Representatives passed the “America Creating Opportunity for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022” to enhance the global competitiveness of the United States. The proposed legislation would create a new visa category (the “W” classification) for nonimmigrants, supporting new entrepreneur and start-up business opportunities; exempt STEM visas from annual limits; and establish a new E-4 visa for South Korean foreign nationals.

The Impact

For the moment, the House and Senate versions of the bill need to be reconciled before any proposed legislation can advance. This is an item to watch in 2022.

COVID-19 Travel Restriction Updates

Health, safety, and travel regulations continue to evolve rapidly around the globe. Each month we highlight two or three notable updates which may impact our clients.

Reminder: Singapore COVID-19 vaccination requirement to take effect Feb. 1

Beginning February 1, employers submitting new or renewal applications for their employees must:

• Declare that the pass holder or new applicant is fully vaccinated
• Remind pass holders to upload their digitally verifiable vaccination certificate to the Immigration and Checkpoint Authority’s (ICA) Vaccination Check Portal before arrival
• Remind pass holders without a digitally verifiable vaccination certificate to show their vaccination certificate to the airlines, or border crossing authority before departure

Individuals certified as medically ineligible for vaccination, and those who have recovered from COVID-19 within 180 days, are exempt from the vaccination requirement.

UK: Reduced Testing for Fully Vaccinated Travelers

Beginning 11 Feb 2022, fully vaccinated travelers will not be subject to pre-arrival, lateral flow testing. Unvaccinated or partially vaccinated travelers will continue to be required to fill out the Passenger Locator Form (PLF) within 48 hours of departure and undergo pre- and post-arrival PCR testing. Please note that testing eight days after arrival and self-isolation will no longer be required.

The Impact

Fluctuating testing and self-isolation requirements continue to make business travel challenging. Employers must communicate changes to affected employees to avoid costly delays. For the latest rules affecting the locations your employees travel, check out our immigration services partner, Newland Chase’s Entry Guide.

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