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Work from Anywhere tax strategy & compliance

KPMG helps organizations manage work from anywhere tax risk, global mobility compliance, and remote workforce policies across jurisdictions—while supporting flexibility and growth.

Work anywhere, together

Work from Anywhere: The shift that’s redefining workforce mobility

Work from anywhere is here to stay. It's a fundamental restructuring of the talent market. While offering flexibility helps attract and retain top performers, it also introduces significant tax, regulatory, and operational complexities. Managing a distributed workforce requires a robust strategy to handle cross-border tax issues, multi-state payroll compliance, and permanent establishment (PE) risk.

Why Work from Anywhere creates tax complexity

It sounds simple—yet it can be complex.

When work crosses borders, even virtually, it can change withholding, reporting, social security, and corporate tax outcomes. You need clarity on where people work, how long, what activities they perform, and which approvals apply to manage exposure and support your talent strategy.

KPMG framework for compliant and strategic workforce mobility

To succeed, organizations need a clear, repeatable framework for managing their distributed workforce. KPMG helps you move from reactive decisions to a proactive governance model, enabling you to manage risk and unlock value. Our approach is built on five core pillars:

1

Design: We help you align your business strategy with your remote work policies and guardrails, documenting risk tolerance, location parameters, and clear guidelines for employees, including scenarios like "workcations" and temporary assignments.

2

Govern: We help you establish a flexible organizational structure to manage fluctuating needs and operate in a tax-compliant manner, anticipating regulatory changes and defining clear protocols for adherence.

3

Track: Leveraging advanced mobility technology and well-defined processes, including KPMG LINK Go, we help you monitor employee work locations in real time to create an audit trail and inform accurate tax calculations.

4

Withhold: We provide specialized guidance on employment tax and payroll withholding obligations, helping you manage the complexities that arise when employees work from multiple states or countries during the year.

5

Monitor: We help you assess risk and measure the return on investment of your policies, ensuring they remain practical, advantageous, and compliant for both your organization and its employees.

KPMG LINK Go enables Work from Anywhere

Effective governance is impossible without the right technology. Automation is essential for managing a complex, distributed workforce and complying with a myriad of location-specific requirements.

KPMG LINK Go connects request intake, eligibility checks, risk scoring, approvals, wage allocation/withholding, and audit trails, helping you track locations, manage remote workforce tax risk, and demonstrate global mobility compliance at scale.

How KPMG supports your Work from Anywhere program

KPMG Global Mobility Services practice offers an integrated suite of services and technology to help manage the full lifecycle of your global workforce.

Strategy and Policy Design:

We help you align your business goals with your talent agenda, documenting priorities and risk tolerance to provide clear, actionable guidelines for your workforce.

Risk and Data Analytics:

Assessing risk and measuring your ROI will help you make better decisions about whether your policies are practical and advantageous for both you and your employees.

Organizational Agility:

Change succeeds when people are prepared. We enable your teams and stakeholders to confidently navigate transformation, embedding agility into your culture and accelerating time-to-value.

Integrated Capabilities:

We bring together specialists in tax, risk, technology, and change management to deliver a holistic solution that addresses your unique challenges.

To make Work from Anywhere valuable to your business, figure out how it can best help your organization deliver on its talent agenda and strategic goals.

David Mayes

Principal, KPMG Global Mobility Services

Work-from-anywhere leaders David Mayes and Kshipra Thareja discuss the latest trends in the remote and hybrid work world―including what it means for companies and the strategies they can take to support a hybrid workforce. Watch the video to learn more.

FAQs:

What does “Work from Anywhere” mean from a tax perspective?

It’s a policy that allows employees to work from locations beyond their usual office. From a tax lens, it can change withholding, reporting, and social security obligations, and in cross‑border cases, potential permanent establishment exposure. A defined policy with thresholds and approvals is essential.

What tax risks arise when employees work remotely?

Common risks include multi‑state nexus, misaligned payroll withholding, PE triggers, treaty/totalization errors, unregistered filings, and missing audit trails. Technology‑enabled tracking helps detect and mitigate these early.

Does remote work create permanent establishment (PE) risk?

Yes, especially when activities in the host location are revenue‑generating, managerial, or habitual in contract negotiation. Policies should set role/activity limits and duration thresholds, with pre‑approvals for higher‑risk cases.

How do companies manage payroll tax for remote workers?

By confirming work locations, registering where required, allocating wages across jurisdictions, applying reciprocity/convenience rules, and reconciling at year‑end. Automation reduces manual error and improves consistency.

What policies should be in place for Work from Anywhere programs?

Eligibility, approved locations, day limits, permitted activities, data security, equipment, expense, and immigration requirements, plus clear approval workflows and recordkeeping.

How do companies monitor where employees work?

Through integrated systems that use request forms, HRIS, time/travel data, and (where appropriate) location signals to maintain day counts and trigger alerts for PE/nexus/withholding thresholds.

How does KPMG support a Work from Anywhere program?

With policy design, tax/immigration guidance, technology (KPMG LINK Go), payroll implementations, analytics, and change management, all aligned to risk tolerances and business goals.

What results should we expect from a mature program?

Greater talent flexibility with documented guardrails, fewer compliance surprises, faster approvals, and leadership visibility into cost and risk through dashboards and audits.

Meet our team

Image of David H. Mayes
David H. Mayes
Principal, Tax, Global Mobility Services, KPMG US
Image of Kshipra Thareja
Kshipra Thareja
Principal, Tax, Global Mobility Services, KPMG US

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