Purchasing Resources for Expatriate Benefits

Expatriate Benefits Key Terms

Understanding the basics of expatriate benefits
By Paula Papp Many global-based companies require that their employees have a degree of international work experience to be promoted to higher-level positions. Expatriate work assignments challenge both the workers and their families, and most globally based businesses offer expatriate incentive packages that compensate employees. To understand the compensatory packages, it’s important to learn the expatriate benefits key terms

Expatriate

An expatriate is an employee who is not a citizen of the country in which the business operations are located. Expatriates usually don't plan on living in their new country permanently, but if they do they usually retain their citizenship in their native country.
Try:  There is more information about expatriates at Wise GEEK.

Localization

Localization is the process of changing the expatriate benefit package to a plan that is the same as one offered to employees locally.
Try:  Mercer has a detailed description of the various aspects of localization.

Tax equalization

Tax equalization ensures that while the expatriate employee is working in another country, he or she pays the same amount of Social Security taxes and income taxes as if they were working for the business while living in the United States.
Try:  Tax Me Less supplies a detailed summary of tax equalization for expatriates and can help corporations formulate benefits that include tax-equalization policies.

Expatriate compensation

The salary base rate and increases must address the changes that are seen in the cost of living and the overall experience and job responsibilities that employees and their families undertake when they relocate to another country.
Try:  More information about expatriate compensation programs is available at Business & Legal Reports.

International/expatriate medical insurance

International/expatriate medical insurance provides expatriates with coverage for medical expenses that occur when the employee is traveling, or living, temporarily in a foreign country. This type of coverage usually extends to major medical expenses like hospital stays and surgery done in an emergency.
Try:  Insure has extensive information for any employee considering work oversees.

Balance-sheet approach

The main focus of using the balance-sheet approach is ensuring that expatriate employees have a lifestyle in the host country that is equivalent to the lifestyle they would have at home. Factors such as housing, quality and cost of living, and transportation are taken into consideration when using this approach.
Try:  A detailed summary of the balance-sheet approach can be found at OCR Worldwide. 

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