Payroll Compliance for Business Travelers:
What You Need To Know

Presented by: Vic Arora CPA & Co-Founder, Blackspark
Our Presenter
Vic Arora, Co-Founder
Qualified as a Canadian Chartered Accountant in
1997 with Ernst & Young where he was a...
AGENDA
……
AGENDA
> Meet Blackspark
> Payroll Obligations and the Impact
> Beating Complexity through Integration and Autom...
ABOUT BLACKSPARK
Based in Toronto, Ontario

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur ...
THE PAIN
Employees create payroll obligations when they travel but…..
The payroll team has no idea:
when
where and
for how...
THE PAIN

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
AN EXAMPLE
John Smith:
lives in Texas and travels to California 24 days a year
annual salary is US$150,000, works 240 days...
California, Colorado, Massachusetts, Minnesota, New Jersey,
New York, and Pennsylvania (high audit activity)
States with p...
WHY NOW?
Prolonged Recession
Easier to tax non-residents (non-voters!)

PLUS >

Better methods to analyze
transactions & i...
WHY NOW?
Media Attention
Tax Firm Emphasis

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur ...
How Big?
…..
HOW BIG?
…….

New York State: $4.9B (7% of budget)
BIG 4 example:
$1.3M annual U.S. exposure

©2011 Concur, a...
COST OF NON-COMPLIANCE
NEW YORK STATE
1. Payment of withholding tax owing
PLUS
2. Penalties of up to 100% of withholding t...
THE MISSION
Execute multi-jurisdictional payroll
each payroll period
across our entire employee population

©2011 Concur, ...
THE ENEMY
Hard payroll cycle (TIME)
Varying regs by state (COMPLEXITY)

©2011 Concur, all rights reserved. Concur is a reg...
BEATING TIME
We need trip details ASAP to calculate workdays

Travel system
is the answer!

>

Data available in real time...
BEATING TIME
ALSO:
Cancelations and itinerary changes
Connecting flights
Purpose of travel

©2011 Concur, all rights reser...
BEATING COMPLEXITY
States with no tax
Reciprocity
Withholding required in state?
Technical & practical thresholds
©2011 Co...
STEP 1: STATES WITH NO TAX
States with no tax
If ONLY all states had no income tax!
Travel days in these states are treate...
STEP 2: STATE TAX RECIPROCITY
Reciprocity
An agreement between individual states.
DEPENDENT on home state.
If applicable -...
STEP 3:CORPORATE NEXUS
Withholding required in state?
Employer requirements ONLY apply if
organization has payroll nexus i...
STEP 4: TECHNICAL & PRACTICAL
Technical & practical thresholds
Rules and regulations differ in EVERY state.
Blend of techn...
SOLUTION

Integrated via Concur App Center

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur ...
OBJECTIVE
Help customers:
Save time
Automate manual processes to comply
Save money
Eliminate financial risk of penalties

...
WHAT IT DOES
Speaks to your Concur system
No manual processes

Delivers report each payroll period
Supports your existing ...
FLIP THE SWITCH
Rapid deployment by Concur Admin
No linking individual accounts

Syncs as employees book
Includes historic...
WE CONFIGURE FOR YOU

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
NO CHANGE TO TRAVEL PROCESS

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, I...
TRAVEL DATA FOR PAYROLL

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
TRAVEL DATA FOR PAYROLL

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
TRAVELER SIGN OFF

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
TRAVELER SUPPORT

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
ANSWER DELIVERED

“An effective tool must be able to present a picture of exposure within five minutes of
looking at it. O...
EXECUTION
ADP MULTI-JURISDICTION:
Supports multiple worked in states
Temporary configuration per payroll period
Data Impor...
©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
INTERNATIONAL

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
INTERNATIONAL

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
FREE ANALYSIS OFFER

EXCLUSIVELY FOR CONCUR CLIENTS
Save over $2,500 by enrolling for a free analysis by November 1st!
©20...
Q&A

©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
CONTACT US–
Concur.com/AppCenter
Vic Arora, CPA, CA
Co-Founder
varora@blacksparkcorp.com
855.667.7275 x701

©2011 Concur, ...
RESOURCES
The New York Times – States Look Beyond Borders To Collect Owed Taxes:
http://www.nytimes.com/2010/03/22/busines...
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Payroll Compliance For Business Travelers: What You Need To Know

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As your employees travel, they trigger payroll reporting requirements in various states which creates the need for collaboration across travel management and payroll functions. Blackspark and Concur cover what you both need to know about these increasing regulations. Learn how you can use your existing Concur data to easily tackle this topic.

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Payroll Compliance For Business Travelers: What You Need To Know

  1. 1. Payroll Compliance for Business Travelers: What You Need To Know Presented by: Vic Arora CPA & Co-Founder, Blackspark
  2. 2. Our Presenter Vic Arora, Co-Founder Qualified as a Canadian Chartered Accountant in 1997 with Ernst & Young where he was a member of the Human Capital practice. Worked with clients on tax related aspects of employee movement including coordination of tax compliance, compensation reporting, and tax planning. Co-founded Epoch Integration Inc. in 2001, an enterprise wireless venture whose success led to its to acquisition by Blackberry (RIM) in 2006. Consultant to PricewaterhouseCoopers' International Assignment Services practice Co-Founded Blackspark Corporation. ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  3. 3. AGENDA …… AGENDA > Meet Blackspark > Payroll Obligations and the Impact > Beating Complexity through Integration and Automation ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  4. 4. ABOUT BLACKSPARK Based in Toronto, Ontario ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  5. 5. THE PAIN Employees create payroll obligations when they travel but….. The payroll team has no idea: when where and for how long they’re traveling ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  6. 6. THE PAIN ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  7. 7. AN EXAMPLE John Smith: lives in Texas and travels to California 24 days a year annual salary is US$150,000, works 240 days a year. Taxable in California for: 24 days/240 days x $150,000 = $15,000 ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  8. 8. California, Colorado, Massachusetts, Minnesota, New Jersey, New York, and Pennsylvania (high audit activity) States with personal income tax on non-residents States with no personal income tax ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  9. 9. WHY NOW? Prolonged Recession Easier to tax non-residents (non-voters!) PLUS > Better methods to analyze transactions & identify who owes ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  10. 10. WHY NOW? Media Attention Tax Firm Emphasis ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  11. 11. How Big? ….. HOW BIG? ……. New York State: $4.9B (7% of budget) BIG 4 example: $1.3M annual U.S. exposure ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  12. 12. COST OF NON-COMPLIANCE NEW YORK STATE 1. Payment of withholding tax owing PLUS 2. Penalties of up to 100% of withholding tax owing PLUS 3. Interest ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  13. 13. THE MISSION Execute multi-jurisdictional payroll each payroll period across our entire employee population ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  14. 14. THE ENEMY Hard payroll cycle (TIME) Varying regs by state (COMPLEXITY) ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  15. 15. BEATING TIME We need trip details ASAP to calculate workdays Travel system is the answer! > Data available in real time (as it is booked) No need to harass travelers ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  16. 16. BEATING TIME ALSO: Cancelations and itinerary changes Connecting flights Purpose of travel ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  17. 17. BEATING COMPLEXITY States with no tax Reciprocity Withholding required in state? Technical & practical thresholds ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  18. 18. STEP 1: STATES WITH NO TAX States with no tax If ONLY all states had no income tax! Travel days in these states are treated as workdays in the employee’s home state for payroll purposes. ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  19. 19. STEP 2: STATE TAX RECIPROCITY Reciprocity An agreement between individual states. DEPENDENT on home state. If applicable - travel days in these states are treated as workdays in the employee’s home state for payroll purposes. ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  20. 20. STEP 3:CORPORATE NEXUS Withholding required in state? Employer requirements ONLY apply if organization has payroll nexus in the state If applicable - travel days in these states are treated as workdays in the employee’s home state for payroll purposes. ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  21. 21. STEP 4: TECHNICAL & PRACTICAL Technical & practical thresholds Rules and regulations differ in EVERY state. Blend of technical and practical is often a good approach. ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  22. 22. SOLUTION Integrated via Concur App Center ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  23. 23. OBJECTIVE Help customers: Save time Automate manual processes to comply Save money Eliminate financial risk of penalties ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  24. 24. WHAT IT DOES Speaks to your Concur system No manual processes Delivers report each payroll period Supports your existing payroll process ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  25. 25. FLIP THE SWITCH Rapid deployment by Concur Admin No linking individual accounts Syncs as employees book Includes historical travel ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  26. 26. WE CONFIGURE FOR YOU ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  27. 27. NO CHANGE TO TRAVEL PROCESS ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  28. 28. TRAVEL DATA FOR PAYROLL ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  29. 29. TRAVEL DATA FOR PAYROLL ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  30. 30. TRAVELER SIGN OFF ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  31. 31. TRAVELER SUPPORT ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  32. 32. ANSWER DELIVERED “An effective tool must be able to present a picture of exposure within five minutes of looking at it. Out of all of the various products I had seen, only borderFile did that.” -Cliffs Natural Resources ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  33. 33. EXECUTION ADP MULTI-JURISDICTION: Supports multiple worked in states Temporary configuration per payroll period Data Import Fields added to a .csv Pay Data Import File ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  34. 34. ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  35. 35. INTERNATIONAL ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  36. 36. INTERNATIONAL ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  37. 37. FREE ANALYSIS OFFER EXCLUSIVELY FOR CONCUR CLIENTS Save over $2,500 by enrolling for a free analysis by November 1st! ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  38. 38. Q&A ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  39. 39. CONTACT US– Concur.com/AppCenter Vic Arora, CPA, CA Co-Founder varora@blacksparkcorp.com 855.667.7275 x701 ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.
  40. 40. RESOURCES The New York Times – States Look Beyond Borders To Collect Owed Taxes: http://www.nytimes.com/2010/03/22/business/22tax.html?pagewanted=all&_r=0 The Financial Times – Rise in mobility is a business risk: http://www.ft.com/intl/cms/s/0/781bc3e0-5f25-11e2-8250-00144feab49a.html#axzz2Z6vGyYuO CNNMoney – The business traveler tax threat: http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/index.html 2011 Deloitte Payroll Operations Survey: http://www.deloitte.com/assets/DcomUnitedStates/Local%20Assets/Documents/us_consulting_DeloittePayrollSurveyResults_121611.pdf EY T Magazine – A personal risk for corporate travelers: http://tmagazine.ey.com/insights/a-personal-risk-corporate-travelers/ Webinar by Ceridian and the American Payroll Association focussed on this topic (this presentation was followed up with in depth sessions held by the APA at this year’s Payroll Congress Conference): http://www.ceridian.com/resources/webinars-ondemand/managing-state-income.html ©2011 Concur, all rights reserved. Concur is a registered trademark of Concur Technologies, Inc.

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