Accounting, Payroll & Pension Issues/Payroll for overseas worker

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Question
Our corporate office is located in NY and we have a facility in Jordan.  Our employee who has dual citizenship, US/Jordan just moved to Jordan permanently to work in our facility there.

Jordan is a separate entity, they have their own policies, payroll, benefits and they are not connected to our US payroll service (ADP).

My question is - do we need to keep this employee on our US payroll (ADP) since he is a US citizen and our corporate office is located in the US?  Or, can he be transferred to Jordan's payroll?

Thank you.

Beth

Answer
If he is moving to Jordan permanently and he is a citizen of Jordan he should be on the Jordan payroll.  If he wishes to remain on U.S. Payroll and pay into the U.S. Social Security System and use his U.S. Citizenship to do this than you have to treat him as an expatriate employee.

I would check with the employee and find out what his intentions are. If he is never coming back to the U.S. and is always going to be in Jordan it would be easier to pay on the Jordan payroll.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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