GLOBAL MOBILITY SERVICES

6-8 October 2015

Rome, Italy

2015 Global Mobility Forum

Next Generation Payroll – making the new reality your reality

Wojciech KupnyDirector – KPMG in SwitzerlandWayne SoontiraratnDirector – KPMG in United StatesDaniel BennettAssistant Manager – KPMG in Switzerland

3© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

PanelistsHartmut SpeckHead of Global Mobility Management‒ Siemens AG

Riikka Virtanen SchwitterHead of Global Mobility Compliance‒ Zurich Insurance Company Ltd.

Panel

4© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Agenda

WHAT IS IT ABOUT Challenges in the marketplace (10 minutes)

HOW TO SUCCEED Market driven discussion around implementing solutions and addressing the challenges (60 minutes)

- Client panel with interactive Q&A

SAMPLE SOLUTION Demonstration of a technology driven responseIN PRACTICE (20 minutes)

5© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Challenges in the marketplace

Instructpayroll data

Know what to report and where

Manage deferred

compensation

Track trailing payments

Handle exceptions

Maintainpaycodes

Comply with tax and payroll obligationsCalculate

Grossups and separate from

reportable items

Compile year-end

statements by country

Identify missing compensation

Report total compensation

and cost

Determine nature of pay elements

(shadow and paying)

Global Payroll Compliance

Consolidate multiple data

sources

Reconcile payroll instructions

Analyze employee costs

Budget employee costs for upcoming

assignments

Support internal recharge

initiatives

Control internal audit log

Standardizepayroll element

descriptions

6© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Global payroll compliance challenges

UK Real Time Information (RTI) and

German wage tax requirements

Brazil double taxation and social

security issues

US and Canada business travelers

India data protection and privacy laws

Australia other reporting (Fringe

Benefits Tax)

China complex tax calculations

Implementing a Solution

8© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Requirement for change?

Which of the following factors best describes why your organization is taking the initiative to tackle global payroll compliance for mobile employees?

Press “1” for Increased risk due to regulatory environment

Press “2” for Internal cost management focus

Press “3” for Following the marketplace (my competitors)

Press “4” for Other

Press “5” for We have not yet taken the initiative

9© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Who is taking the lead?

Which business function is taking ownership of global payroll compliance initiatives in your organization?

Press “1” for Global Mobility Team

Press “2” for HR

Press “3” for Finance

Press “4” for Group Tax

Press “5” for Local Payroll Teams

10© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

What are the management options?

Which of the following best describes your current approach to managing payroll compliance for globally mobile employees?

Press “1” for Fully Outsource

Press “2” for In-house

Press “3” for Partially Outsource and in-house

Press “4” for Other

11© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

What are the determining factors?

Which of the following factors best describes why your organization has chosen your current approach?

Press “1” for Budget or lack thereof

Press “2” for Resources or lack thereof

Press “3” for Technology solution

Press “4” for Other

12© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Where do you start?

Other than long-term assignees, which population of mobile employees is currently at the top of your radar for global payroll compliance?

Press “1” for Short-term assignees

Press “2” for Commuters

Press “3” for Business travellers (including state-to-state)

Press “4” for Combination of the above

Press “5” for None of the above – we are still focused on long-term assignees

13© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Organizational History

Has your organization changed its strategic approach to payroll compliance for mobile employees over the last 3 years?

Press “1” for Yes

Press “2” for No

14© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

If you had the budget, where would you spend it?

Assuming budget is available, where would you make the investment in your ongoing quest to be payroll compliant?

Press “1” for Additional internal headcount

Press “2” for Upgrade to internal systems and technology

Press “3” for Outsourcing to an external provider

Press “4” for Other

15© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

What are the benefits?

What is the most important benefit your organization would gain from a centrally managed global payroll solution other than compliance?

Press “1” for Integrated Structure – which cannot be expected when each country is left to do what they believe is best

Press “2” for Standardization and Understanding – consistent communications to assignees and payrolls

Press “3” for Control – reconciliations and definition of clear roles and responsibilities

Press “4” for Analytics – real time access to internal management reporting

Press “5” for Other

Introduction to KPMG LINK Global Payroll Manager (GPM)

17© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

KPMG Administration

Flexible system design

Default country taxability matrices maintained by KPMG global network

Master pay elements

Roles definition and security

18© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Client Administration

Versatile implementation

Client specific data and tax positions

Global pay code mapping

Local pay code mapping

Flexible importer

Payroll calendar and cut-offs

19© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Employee

Employee demographics

Social security status

Worksheet and allowance data

Total cost information

20© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Payroll

Payroll instructions

Reconciliations

Tax calculations

Drilldown capabilities

Snapshot of payroll progress

21© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Dashboard

User driven views

Configurable widgets

Process driven

Quick access employee details

Real-time updates

Demo

23© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Example Case

Assignment Initiation FormJoe Expat

Paying Payroll Home

Policy Home Terms (Tax Equalized)

Term 1 January 2014 - 31 December 2017

Location Switzerland to United Kingdom

Income Tax Reporting

Income Tax Withholding

Social Security Reporting/ Withholding

Thank you

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© 2015 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.