Updated: Jun 3
As a large corporation was forced to restructure after a merger, the company terminated a U.S. employee who had been working on locations in Europe for a couple years. Sixty days after the employee left the company, he received a notice from the foreign revenue department assessing him 256,000 Euros for foreign taxes that had not been paid.
The corporation had not paid into the foreign tax system on his behalf during his entire time on assignment. Because it was the employer’s responsibility to withhold the taxes and remit to the government, the corporation had to pay the amount even though the individual no longer worked for the corporation.
Additionally this caused a large amount of income to be reported in the U.S., resulting in a large U.S. payment as well. This lack of attention to detail cost the company hundreds of thousands, for one employee. PZI found ways to utilize the credits back from the employee, reducing the final costs to the corporation.
Since 2014, PZI has provided highly transformative, customized international business and human capital management solutions to global corporations. Over the past two decades, our founder and CEO Debbie McGee developed a vision while innovating at successful multinational companies. Debbie’s vision was to create a business with other highly-accomplished subject matter experts like herself and, in turn, effectively serve those managing global workforces. Whether a global corporation, government agency, or non-profit, PZI’s team is well-equipped to serve you in achieving your goals in improving performance. If you want to learn more about PZI Contact Us or visit our About page.