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Introducing Certino Tax intelligence to reduce the cost of your shadow payroll
Introducing CertinoTax intelligence to reduce the cost of your shadow payroll
4 Certino in 30 seconds6 Understanding your shadow payroll8 The challenges of managing your shadow payroll
10 Questions you should be asking about your shadow payroll12 How Certino manages the shadow payroll14 How the technology works: our five stage process16 The benefits of working with Certino (part 1&2)
18 Our commitment to our clients20 Industry feedback22 The people behind Certino
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We are a brand new company with a unique approach to providingtrue tax intelligence for our customers. Specifically, we have identified the management ofemployment tax, cost and risk – known as ’the shadow payroll’ –as a massive challenge for international businesses with complex,mobile workforces. Based on over 50 years experience of managing globalmobility solutions in multinational businesses, we have developeda purpose-built technology platform and a seamless process formanaging your international employment tax liabilities. I look forward to discussing your international tax challengesand how Certino can help reduce your costs and compliancerisks with you in person.
Richard [email protected]
Welcome to Certino
What we doWe enable our customers to understandand manage the tax liabilities of aninternational workforce by automatingthe end-to-end process.
The benefit of what we doWe reduce costs, simplify complianceand minimize risk for your globaloperations in a consistent and easy-to-manage way to put you in control ofyour international tax management.
Certino in30 seconds
Who we areCertino are the global expertsin shadow payroll.
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Historically, the focus has beenon the pre-assignment anddeployment phases throughactivities such as selection ofindividuals, cost estimates,building efficient processes formobilization, supporting theemployee (and their family)through the relocation process. More recently, organizationsoperating internationally haveplaced greater emphasis onbeing compliant with the lawsof the territories in which theyoperate. But with the focus ongetting the employee to the hostlocation, compliance efforts havebeen primarily focused onimmigration requirements andon obtaining work permits wherethey are required.
For a business to be successful, itneeds to have the right people inthe right place at the right time. Increasingly, this needs tobe achieved with full compliance. This is no small challenge, butwhen it involves the movement ofemployees across internationalborders, those challenges multiplyand impact across the entireorganisation.
Understandingyour shadowpayroll
However, there is still littlefocus on proactive managementof employment taxes whichrepresent one of the largestcosts associated with movingstaff across borders; typically,around a third of the totalemployment costs of aninternational assignee. This is what’s commonlyknown as your ‘shadow payroll’. Many organizations muddlethrough, believing that theannual tax return process issufficient, but by then it is usuallytoo late to take steps to minimizetax liabilities; and always too late tocomply with monthly withholdingand reporting requirements.
Employmenttaxes representaround 33% ofthe total costof moving staffacross borders
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AVOI
D DO
UBLE OR MULTIPLE TAXATION
REDUCE COSTS
AVOI
D CO
STLY FINES
ENHANCECOMPLIANCE
Reputational riskThere are greater demandson country tax authorities tomaximize revenues, and targetingorganizations that moveemployees across borders offersrich pickings. Improvements in technologyenable closer alignment betweenimmigration and tax authorities,increasing the risk of non-compliance being identified andpenalties imposed.
Notwithstanding internal businessdrivers to reduce costs andoptimize the use of resources,external pressures are increasingeach year.
Real time tax settlementTax authorities are increasinglyrequiring real time settlement oftax liabilities rather than acceptingsettlement through the year-endtax return process. Penalties forlate payment will only increase.
The challengesof managing yourshadow payroll
The key challengesof managing yourshadow payroll
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Questions you shouldbe asking about yourshadow payroll
How muchdo we pay in
employment taxesfor our international
employees?
How do weknow this is the
right amount; whatsteps are we taking
to minimize it?
Do ouraccounts match
the employmenttax filing; what
future liabilities arebuilding up?
How manyinternal resources
are involved in inter-company rebilling and
accounting; what isthe internal cost?
How do thecosts associated
with internationalemployees getrecorded in the
books?
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What resourcesare involved in the
employment taxcalculation process;
what is the cost?
Are we sure thatwe are up-to-date
and comply with thelocal employment
tax laws?
collaboration with the corporatetax function. We can accept data feedsfrom any system and data can beuploaded into our platform frommultiple sources, in multipleformats, avoiding onerous andcostly consolidation requirementsfor our clients. We typically on-board clientswithin 3 months and can processshadow payroll calculations in48 hours, which is faster than anyexisting solution.
Certino is a comprehensiveemployment tax managementsystem that covers the wholespectrum from pre-moveplanning, through shadowpayroll calculations and inter-company rebilling to the postingof transactions in the accounts. We estimate that Certino willreduce employment tax costsby 20% in the first year. We take a fully integratedapproach, covering global mobility,employment taxes, payroll andfinance, together with a close
How Certino managesthe shadow payroll Automated
sense check andreconciliation pro-
cesses ateach stage
Extensivereporting
system
Automatedshadow payroll,
intercompanyrebilling andaccounting
process
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Certino is cloud-based andenables a fully automatedprocess that is both secureand compliant.
We estimateCertino will reduceemployment taxcosts by up to 20%in the first year
How the technology works:our five stage process
2. ConsolidationMulti-level validation andautomated sense checkscreate a single source tofeed into shadow payrolland rebilling systems.
3. Shadow payrollPayroll calculations by country,based on a consolidated fileand preset country rules.Aggregated reports areautomatically sent to theright people.
4. Inter-company rebillingCosts are automaticallyallocated to the right entityand cost centre. Certino isfully integrated with yourcorporate tax structure.
5. Reporting 24x7, flexible, client-drivenreporting – available on aself-service basis.
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1. Gathering the data Encrypted data sentdirectly to Certinofrom the sourcesystems without anymodification required.
1. Shadow payrollReal-time delivery.
Automatically optimises taxes.Minimizes complexity.
Greater accuracy.Reduced liabilities.Fines eliminated.
Compliance enhanced.Real-time regulatory updates.
Reduced costs.Fully auditable.
2. Inter-company rebillingReduces time, resource and cost.
Early warning system for P&L owners.Supports shadow payroll system.Enhances accuracy of accounts.
Provides a full audit trail (defends audits).Supports compliance.
Enables timely tax deductions.Improves cash flow in current year.
Support BEPS.
The benefits of working with Certino (part 1) The benefits of working with Certino (part 2)
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We will work collaborativelywith you to connect HR, finance,payroll and tax to enhance allaspects of your internationalemployment tax management.
We will reduce your employmenttax costs by up to 20% whilesimultaneously reducing taxcompliance risk.
We will reduce the total costsof managing your internationalemployment tax liabilities bymore than 50%.
Our commitmentto our clients
We will provide greater accuracy,visibility and control of all costsassociated with your internationalemployees.
We will simplify all aspects ofmanaging your shadow payroll.
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ON BEHALF OF CERTINORichard McBride, Managing Director
Industry feedback
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Andy SeearGlobal Head ofEmployment Taxes, AIG
There is a genuineopportunity for a solutionwhich will demystify andenhance shadow payrollcompliance with shorter
transaction times, yet withreduced and transparent
end-to-end costs.
Mark DerksenHead of InternationalMobility, Arup
Simon RogersManaging Partner,Talent Mobility Search
Finally, there is acure to one of the
biggest headaches inmobility – and it even
saves you moneyas well.
At last the mobilityindustry has a proven
solution through Certinoto mitigate what is oneof the least discussed
yet biggest riskswithin mobility.
Damian WalshPartner, Heidrick& Struggles
An automated shadowpayroll solution reduces
your business risk and cost,ensures you report the right
information in real-timefrom day one, and enables
you to make betterbusiness decisions.
Chris DebnerFounder, StrategicGlobal MobilityAdvisory
Shadow payroll is animportant hygiene factor
in mobility programs.The option to automate
and outsource it, benefitsmobility teams so that
they can focus on morestrategic topics.
The people behind Certino
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Richard is a highly experiencedHR executive, chartered accountantand chartered tax adviser with adeep expertise in all aspects ofglobal mobility, internationalemployment tax and reward. He has extensive practicalknowledge of efficient tax andsocial security solutions within thecontext of an ever-changingenvironment with the practicalinsight, experience and knowledgeof making significant savingsthrough process improvement.
Richard has a wealth of experienceover 25 years, across a variety ofindustries including oil & gas,engineering and manufacturing,with a sustained record of deliveringresults and cost savings throughinnovation in the management ofcross-border moves. Prior to founding Certino, Richardset up and led the global mobilityfunction at Baker Hughes, deliveringmore than USD 250 million inemployment tax cost savings overeight years (2008 – 2016).
Richard McBrideFounder & Managing Director
Didier CharretonChairman & Co-founder
Didier is currently the ChiefHuman Resources Officer at AngloAmerican, the London-based mininggroup with operations in SouthernAfrica, Australia, Canada andLatin America. Previously he was Chief HumanResources Officer at Baker Hughes,the oil & gas company employing60,000 people in 90 countries. During his eight-year tenure, heworked with Richard to establisha best-in-class global mobilityfunction, which proactivelymanaged a population of 3000international employees and
returned significant financial benefitsto the company’s bottom line. Prior to joining Baker Hughes,Didier was the Chief HumanResources Officer at Coats plc,where he managed the migrationof the company’s productioninfrastructure to Asia. Before this,he spent 12 years at Schlumbergerin several regions gaining firsthandexperience of the challengesassociated with international mobility. After 30 years of an internationalcareer, Didier decided to capitaliseon his experience to participate inthe creation of Certino.
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