International offering for PwC

Executive summary

MBO Partners can facilitate the engagement of independent talent whether they perform their services domestically, internationally, or any combination of the two.

Unlike most providers, MBO can accommodate talent whose projects require any of the most common international engagement scenarios:

1. Work Locally: When talent lives and works in the same foreign country.
2. Relocate: When talent moves to a foreign country to work on projects.
3. Commute: When talent lives in one foreign country but regularly commutes to another country to perform services.
4. Travel: When talent travels to a foreign country, usually for shorter periods of time, in support of their U.S.-based projects.

MBO performs a comprehensive risk analysis, as needed, to determine whether MBO engages the talent directly or through our international partner network.

As explained in the sections that follow, pricing and invoicing vary based on which engagement solution is appropriate for the talent's situation.

Process

When PwC pursues an engagement that may include an international component, the PwC engagement managers must complete the International Engagement Questionnaire. This survey collects the current facts about the project including:

• the services the talent will deliver for the entire project,
• the country(ies) where the talent will deliver services,
• the specific services the talent will deliver in the foreign country(ies),
• the talent's expected in-country duration for each country,
• the talent's immigration status in each country(ies) (if any), and
• other considerations as necessary.

We reconcile this information with the talent's expectations to make sure that both parties are aligned, and we define and document the project based on the agreed-to facts.

MBO then performs our analysis and communicates the appropriate engagement solution and its associated pricing. As introduced in the Executive Summary, MBO offers two engagement solutions for managing the international components of the independent talent's project:

• MBO engages the talent directly and we appropriately manage any cross-border risk, or
• MBO subcontracts the engagement to one of our international partners, which manages appropriate foreign country requirements.

MBO selects the appropriate engagement solution on a case-by-case basis for each project. We will strive to engage talent directly where possible, as this engagement solution typically aligns with PwC's preferred way of working. However, we anticipate that there will be cases where this engagement solution may not be possible or preferred by PwC.
Regardless of the engagement solution MBO recommends, it will always meet PwC's high standards and risk tolerance thresholds.

Note: Talent may not perform work internationally until this process is complete and approved.

Pricing

Pricing varies based on the engagement solution that is appropriate for the project. As introduced earlier, MBO defines and documents each project based on the agreed-to facts.

Engaging talent directly

MBO charges a flat Cross Border Assessment Fee (CBAF) when we engage talent directly to perform services abroad. We apply the CBAF on a per-talent, per-project, and per-country basis regardless of the number of trips envisioned for the project. In exchange for this fee, PwC receives the following:

• duty of care insurance and security protocols for the talent,
• immigration compliance for the talent,
• a tax review of the payment streams and activities, and
• a comprehensive review of other potential cross-border risks (e.g., employment classification / laws).

The CBAF amount is either $600 or $900 per country depending on the complexity of the country(ies) in which the talent will deliver the services. MBO determines each country's complexity level based on its independent contractor regulatory environment, immigration complexities, tax rules and related compliance obligations, PwC's in-country legal structure and operating rules, etc. MBO will re-evaluate and re-publish the list of "complex" countries (those that incur a $900 CBAF) annually to coincide with PwC's June 30 fiscal year-end.

The CBAF is due regardless of whether the proposed engagement moves forward and/or the anticipated international travel occurs. MBO will invoice PwC monthly.

Leveraging MBO's international partner Network

MBO charges an International Network Fee (INF) when we use our international partner network to engage the talent for the services performed abroad. The INF is a mark-up that varies based on work location and engagement classification (e.g., independent contractor or employee). It applies to hours worked by the talent when engaged by the partner and includes any partner costs. Since MBO bundles the INF into the talent's hourly bill rate charged to PwC, no separate invoice is required. MBO will provide the proposed pricing to the engagement team for approval in advance of engaging an international partner.

In exchange for the INF, PwC receives the following:

• PwC can leverage a one-stop-shop approach for using MBO's international partner network.
• MBO will work behind the scenes with the international partner(s) to implement a compliant engagement solution that includes:
  • The engagement team will continue to work with its designated MBO U.S. contact to enable a seamless enrollment process.
  • adherence with the terms and conditions contained in the Master Services Agreement (MSA) between PwC and MBO U.S. (subject to any country-unique regulations that could impact insurance coverages, background checks, etc.);
  • compliant tax payment streams including income, employment, transaction, withholding, etc.; and
• compliance with in-country immigration and other regulations.
• MBO invoices PwC in U.S. Dollars regardless of work location or the talent's currency preference.
• Because the talent will enjoy local country expertise and support provided by the international partner, PwC will gain the value of a smoother and more appealing engagement experience. Talent will also maintain their connection to MBO U.S. for support as required.

Note: If a project that MBO has determined to be appropriate for the partner network does not move forward for any reason, MBO charges and invoices only the relevant CBAF fee.

Accommodating for factual changes

Note: This section applies only for engagements where MBO engages the talent directly.

Engaging talent directly

It is not uncommon for facts to change at any point during the engagement lifecycle. These changes may impact the services the talent needs to perform abroad and/or the engagement solution MBO applies to the project. In these instances, PwC must notify MBO immediately so we can determine if the project's cross-border risk profile has materially changed. A failure to re-evaluate the totality of the new situation could lead to immigration issues, tax liabilities, or other serious consequences for PwC and the talent.

MBO will reassess the situation and advise PwC on whether the engagement team and/or the talent must take any actions to mitigate any such risk. Material changes may incur additional fees unless the new recommended solution is to leverage MBO's international partner network. In the latter instance, MBO will provide new pricing, inclusive of the INF, to the PwC engagement team for approval.

MBO will work with the PwC engagement team at the outset of a project and inform them when we believe there is a likelihood that factual changes will occur that result in additional fees and/or require a different engagement solution. This will provide transparency into MBO's pricing, which in turn will better enable the engagement team to either manage the project to stay within the originally defined parameters or factor any additional costs into the project's economics.

When PwC proactively notifies MBO of factual changes during a project, the following pricing implications will result:

Other examples of factual changes that can require a reassessment and a potential fee include:

• The talent's length of time in the foreign country does not change, but the activities in country will or have changed. In these cases, MBO charges:
  • one-half of the original CBAF, or
  • no fee if we determine that an international partner must engage the talent. In this situation, MBO provides new pricing, inclusive of the INF, to the engagement team for approval. (Note that MBO charges one-half of the original CBAF if the project does not move forward through the International Partner Network for any reason.)
• The overall length of the project changes, but there is no change in the time the talent will spend in the foreign country(ies). This does not result in an additional fee.

Note: There will be increased costs if PwC does not proactively notify MBO that the talent's duration in a foreign country exceeds the original estimate by more than five working days. As such, it is in the engagement team's best interest to work closely with MBO to discuss all proposed changes to a talent's project prior to the changes taking place.

Questions / contact information

For PwC Talent Exchange engagements

If you have questions concerning talent, projects, and international travel, email Jennifer Street with the PwC Talent Exchange Operations team at Jennifer.Street@pwc.com.

For Beeline / TPE engagements:

Please contact your Third Party Labor contact at PwC if you have questions.