Moving people between countries, with every obligation that follows them.
An international assignment creates obligations in two countries at once: employment documentation, compensation, payroll, income tax and social security. HSP Group handles them as one program across 100+ countries, so the employee is paid correctly and the company is compliant in both the home and the host country.
US → GermanyEqualized
UK → SingaporeShadow payroll
NL → BrazilStructuring
DE → JapanPermit 30th
Assignment setup · UK to SingaporePeople moved for
An assignment package is an HR decision with a tax consequence.
Most mobility arrangements split the two and discover the gap after the offer has been made. Three things change when the same organization handles both ends.
The HR side and the tax side of the same assignment
Compensation design, assignment letters and host-country HR compliance are handled by the same organization that models the income tax and social security cost in both countries, so the package you approve survives contact with two tax authorities.
Cost modeled before the offer
Budget and cost projections, and analysis of the income tax cost impact of the deployment, come before the conversation with the employee. Where tax equalization is the right instrument we will write and operate the policy.
Paying someone where you have no entity, without an EoR
In some jurisdictions HSP can register you as a non-resident employer, which lets you run a compliant local payroll without incorporating and without placing the employee with an Employer of Record.
Changing the structure later is the expensive part.
Each option has different downstream consequences, and an EoR is not available everywhere. We model the options before you commit, including the constraint most people miss.
- China requires a formal legal entity for certain business activities, and Germany limits how long an EoR can act on your behalf
- Some managerial and business development roles require direct employment anywhere, whatever structure the rest of the team is on
- Non-resident employer registration, where the jurisdiction allows it, meets payroll and withholding obligations with no entity and no third party holding the employment
Home countryHost country
Tax equalization is one approach, not the default.
Equalization keeps an assignee in roughly the same net position as if they had stayed at home, with the employer absorbing the difference. It is expensive to run and is not always worth it, so we set out the alternatives before recommending one, and prepare the policy document either way.
- Budget and cost projections for the move, with income tax cost impact in the home and host countries
- Expatriate compensation and benefits appropriate to the market and the level, with host-market benefits planning
- The tax policy that governs the package, written and operated rather than handed over as a recommendation
Shadow payroll is the obligation people forget.
A payroll run in one country purely to meet a reporting or withholding obligation, while the employee is paid from another. It is usually required when an assignee stays on the home payroll but has triggered a tax or social security obligation in the host country.
- Expatriate payroll setup, with home and host country payroll obligations met in both places
- Shadow payroll established where the home obligation continues alongside the host one
- The social security position across both countries, including which system the employee remains in
Home payrollHost obligation
Five steps, from a decision to move someone to a compliant assignment.
Budget and cost projections, income tax cost impact in the home and host countries, the social security position, and whether the host country permits the structure you have in mind.
The Master Services Agreement and KYC complete, and the assignment structure is fixed: assignment, secondment, local hire, non-resident employer registration or EoR placement.
The package and the policy are designed: compensation and benefits appropriate to the market and level, the tax policy that governs it, and the assignment or secondment documentation.
Host country payroll and statutory registrations are set up, shadow payroll established where the home obligation continues, and host-market HR compliance met. A named Global Services Director oversees it.
Program management and governance across the assignment lifecycle, individual expatriate income tax compliance in both countries, and the repatriation or localization decision at the end of the term.
Thermo Systems moved employees into Europe and kept them whole.
Thermo Systems was staffing international projects with a mix of local hires and relocated US and EU employees, with no HR presence in Europe. Maintaining net income parity while staying compliant with local labor law, immigration, tax, social insurance and benefits regulation was the central problem.
5
countries entered, from Denmark and Ireland into Germany, the Netherlands and the UK
0
local HR headcount required
100%
net income parity maintained
“Regardless of the country or problem presented to them, they are extremely responsive and demonstrate excellent guidance and solutions.”
Sueann Snodgrass, Chief People Officer, Thermo Systems
What the solution covers.
Assignment planning and structuring
Budget considerations and cost projections, analysis of income tax cost impacts for international deployments, and the comparison between assignment, secondment, local hire, non-resident employer registration and EoR placement, including where each is restricted.
Expatriate compensation and tax policy
Determination of a business-appropriate expatriate package, host-market benefits planning, and the tax policy that governs it: tax equalization where it fits, or an alternative policy approach where it does not, prepared and documented either way.
Assignment documentation
Assignment and secondment letters, secondment agreements, expatriate policy drafting, relocation policies, and the host-country HR compliance requirements that attach to an employee working there.
Expatriate payroll and social security
Expatriate payroll setup, home and host country payroll obligations, shadow payroll where the home obligation continues, non-resident employer registration where available, and the social security position across both countries.
Expatriate tax compliance
Individual expatriate income tax compliance in the home and host countries, alongside program-level oversight of every filing obligation the assignment creates.
Immigration coordination
Advice on the immigration route an assignment depends on, its timing and its dependencies, and coordination of employer-sponsored work permit setup, renewals and transfers.
More on moving people between countries.
Questions we get asked.
Should we move someone on assignment, hire locally, or use an EoR?
It depends on the length of the posting, the cost of the package, whether the role needs continuity of employment, and whether you have an entity in the host country. The constraint people miss is that an EoR is not available everywhere: China requires a formal legal entity for certain business activities, Germany limits how long an EoR can act on your behalf, and some managerial or business development roles require direct employment anywhere. We model the options before you commit.
What is a non-resident employer registration?
In some jurisdictions a foreign company can register as an employer for payroll and social security purposes without incorporating locally. It lets you run a compliant payroll and meet withholding obligations without an entity and without placing the employee with a third party. Availability is jurisdiction-specific and we confirm it per country.
What is tax equalization?
A policy that keeps an assignee in roughly the same net position as if they had stayed at home, with the employer absorbing the difference between home and host country tax. It is one approach among several, and the right one depends on the size and shape of your mobile population. We set out the alternatives before recommending one, and prepare the policy document either way.
What is shadow payroll, and when do we need it?
A payroll run in one country purely to meet a reporting or withholding obligation, while the employee is paid from another. It is usually required when an assignee remains on the home country payroll but has triggered a tax or social security obligation in the host country.
Do you handle visas and work permits?
We advise on the immigration route an assignment depends on, its timing and its dependencies, and coordinate employer-sponsored work permit setup, renewals and transfers.
What happens to the employee's social security?
Both countries may claim contributions on the same earnings unless a totalization or social security agreement applies between them. We establish the position for each assignment, including which country’s system the employee remains in and what certificate of coverage is required.
Can you file the employee's personal tax return?
Individual expatriate income tax compliance is supported in both the home and host country.
What happens when an assignment ends?
Either the employee returns home, or the assignment localizes onto a host country contract. Both have payroll, benefits, tax and immigration consequences, and both are part of the program.
How does this connect to payroll and HR?
Mobility sits alongside HSP’s payroll, HR administration, entity and tax teams in the same organization. Where HSP already runs your payroll in either country, the assignment is set up inside the operation that already pays the person.
62
markets on the standard supported list, 100+ countries delivered in
1,000+
clients served
1
point of contact, accountable across both ends of an assignment
Tell us who you are moving and where from and to.
We will come back with the cost, the obligations in both countries and what the package needs to look like.
A mobility specialist replies within one business day. No sales sequence.