Our customers often ask us whether they can provide their employees direct payments or benefits, e.g. in the form of a company credit card or a Christmas gift.
With WorkMotion, it’s possible. This is also for customers who would like to have their remote employees in any kind of employee participation arrangement, e.g. stock options or virtual shares.
However, when a company sends direct payments/benefits to their Employer of Record (EOR) employees, it may increase the risk of talent being considered to be directly employed by the company. To mitigate risks associated with co-employment is to position the EOR as the primary employer for all employees.
If the company sends timely information to their EOR provider, in this case WorkMotion, then risk is minimal. This information needs to include:
- when the payment/benefit was provided
- what type of payment/benefit it concerned
- the value of the payment/benefit
- tax-related information of the payment/benefit, e.g. the taxable amount and the way it should be taxed