Career Profile

Shadow payroll is a term commonly used in international employment scenarios, particularly when dealing with mobile or expatriate employees. It refers to a parallel payroll system that helps to manage the tax obligations of employees who work in a different country than their home country. <br> <br>When an employee is sent on an international assignment, they may be subject to tax obligations in both their home country and the host country. This can be a complex process, as tax laws, rates, and regulations vary between countries. The shadow payroll system helps employers calculate and manage the tax liabilities of these employees in an organized and compliant manner. <br> <br>In the shadow payroll system, the employee&#039;s payroll is maintained in both the home country and the host country. The employee&#039;s compensation is divided into two parts: the home country portion, which is subject to taxes and social security contributions in the home country, and the host country portion, which is subject to taxes and social security contributions in the host country.