Scheduling taxable benefits, also known as fringe benefits, for your international employees can be a tad tricky - but not with Justworks. This guide will help you navigate through the process smoothly and efficiently.
Accessing the Payments Center
Start by navigating to the Payments Center in your Justworks dashboard, located in the left-hand panel. Once there, select the International tab to proceed. This will take you to the section where you can schedule all payments for your international employees.
Selecting the Taxable Benefits Option
Within the Payments Center, you will find three main options under Employee Payments: Employee Pay, Expense Reimbursement, and Taxable Benefits.
To schedule a taxable benefit, click on the chevron on the Taxable Benefits card or just the card itself to go into the flow under the Taxable Benefits section. This action initiates the flow specifically designed for handling taxable benefits for international employees.
Entering Employee and Benefit Details
Once in the taxable benefits flow, you'll need to input specific details about the employee and the benefit.
First, select the work country of the employee. This ensures that all tax and legal requirements are met according to the local regulations.
Next, choose the type of taxable benefit from the available options, which could include items like housing allowances, transportation benefits, or other fringe benefits.
Setting Payment Preferences
When setting up taxable benefits for your international employees in Justworks, you'll need to choose the form of payment—either cash or non-cash. Understanding the distinction between these two options is crucial for accurate recordkeeping and compliance.
- Cash Benefits: Choosing cash means that Justworks will send money directly to the employee as extra income. This option is typically used when the employee is being provided with funds to purchase a benefit themselves. It's important to note that cash benefits can only be scheduled to be paid on a future payroll run, ensuring that they are processed correctly and in compliance with local tax laws.
- Non-Cash Benefits: Selecting non-cash indicates that the benefit has already been purchased by the company on behalf of the employee. This type of benefit needs to be reported to Justworks for proper recordkeeping and tax compliance. Even though the employee is not receiving additional cash, the value of the non-cash benefit must still be accounted for in their taxable income.
If there are any specific administrative notes related to this payment, add them in the provided section. These notes can be useful for future reference and audit purposes.
Paying Multiple Employees at Once
If you're scheduling benefits for multiple employees simultaneously, enter the gross amounts next to each employee's name. Ensure these amounts are in the local currency of each employee’s country.
The summary section will dynamically update to reflect the total amount and the number of employees being paid, providing you with an overview of the payment distribution.
Reviewing and Submitting the Benefit
Once all details are entered, proceed to the summary screen by clicking Continue. Review the payment details, the employees receiving the benefit, and the total amount to ensure everything is correct.
After confirming the accuracy of the information, click Submit Payment. A confirmation page will appear, detailing the recorded taxable benefit and confirming that it will be processed based on the selected pay date.
Need help?
No worries! Please contact international-support@justworks.com or reach out to your International Customer Success Manager for assistance.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.