An important asset of any organisation is its human resource. Organisations today strive to ensure that the employees receive significant compensation in the form of salaries, allowances and benefits. However, fierce competition in the global marketplace is putting pressure on organisations to be cost conscious while remunerating employees in a tax-efficient as well as compliant manner.
The complexity arising out of continuously changing tax laws, and the rising emphasis by revenue authorities on scrutinising employee compensation, makes it essential for organisations to ensure that it is completely tax compliant along with being
- Flexible and employee friendly
- Cost effective
- Simple to administer
- Tax efficient
- Aligned with industry practice
Key service offerings
We have considerable experience in identifying opportunities and leveraging them to assist clients in formulating tax efficient and compliant strategies. In particular, such compensation bifurcation exercises can be customised to the client’s requirements to include:
- Analysis of the current employee compensation structure and:
- advise on the tax implications thereof
- suggest removal of policies which are not cost effective due to administrative costs or potential litigation costs
- Examine other compensation bifurcation options available to the organisation
- Assistance in preparation of sample compensation bifurcation and at each level incorporating the suggested components
- Advise on the processes to be implemented for the verification of documents in respect of expense and compensation claims to ascertain their adequacy from a tax perspective
- Design a standard manual containing payroll policies and procedures
- Participate/ conduct employee communique session in rolling out revised compensation items
- Identify potential tax, interest and penalty exposure (if any).