News & Analysis as of

Out-of-State Employees Income Taxes

Bond Schoeneck & King PLLC

Employment of Out-of-State Telecommuters by Manufacturers in New York State

For manufacturers located in New York State, the employment of out-of-state telecommuters can greatly expand the available talent pool. That said, there are a number of issues that need to be addressed when considering this...more

Pillsbury - SeeSalt Blog

Try, Try Again—New York’s Convenience of the Employer Rule Sources Nonresident Wages to New York Even During the Pandemic

A New York nonresident taxpayer, Edward Zelinsky, recently filed a notice of exception to a Division of Tax Appeals’ (DTA) determination that he must allocate all his wages to New York under the so-called “convenience of the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Do Good Fences Make Good Neighbors? New Jersey Enacts Nonresident Income Tax ‘Convenience of the Employer’ Law

New Jersey enacted Assembly Bill No. 4694 on July 21, 2023, adding a “convenience of the employer” rule in an effort to gain tax revenues from nonresidents assigned to a primary work location in New Jersey who work outside...more

Rivkin Radler LLP

New York’s Convenience of the Employer Rule – New Jersey and Connecticut Respond

Rivkin Radler LLP on

History is replete with examples of leaders who chose to battle, or who were forced into defending against, enemies on two fronts. Rarely did it end well for the combatant that occupied the middle ground. In a sense, New...more

Fox Rothschild LLP

State and Local Tax Implications of Having Hybrid and Remote Employees

Fox Rothschild LLP on

The number of hybrid and remote employees has greatly increased since the onset of the pandemic. As of February 2022, 39% of remote-capable employees were fully remote, 42% were hybrid and only 19% were fully on-site,...more

Littler

Puerto Rico Enacts New Legislation on Remote Workers of “Out-of-State” Employers

Littler on

On June 30, 2022, the governor of Puerto Rico signed into law Act No. 52 (Act 52-2022), which amended the concept of “engaged in trade or business” under the Puerto Rico Internal Revenue Code of 2011, to address the...more

Bowditch & Dewey

Remote Work Tax and Compliance Considerations

Bowditch & Dewey on

Many tax and compliance obligations apply when a company offers a remote work arrangement to employees in different states. STATE AND LOCAL EMPLOYEE TAX REQUIREMENTS - First, the company must work with its payroll provider...more

Buckingham, Doolittle & Burroughs, LLC

Out-of-State Remote Workers may Create Substantial Nexus as COVID-19 Protections Expire

In response to the COVID-19 pandemic, as work-from-home became the norm, many states provided safe harbors such that remote workers teleworking in the state would not create nexus for corporate income tax and sales / use tax...more

Kerr Russell

State And Local Tax Considerations For Remote Employees – And Their Employers

Kerr Russell on

Government mandated work-from-home orders have created a remote workforce, creating a host of complex state and local tax issues for both employers and their employees. Even as these orders expire, a common trend among...more

Bowditch & Dewey

Update on Revised DOR Income Tax Pandemic Regulations for Telecommuters

Bowditch & Dewey on

On March 5, 2021, the Massachusetts Department of Revenue (DOR) codified final regulations to extend Massachusetts income tax withholding to non-residents formerly commuting to Massachusetts but now telecommuting due to the...more

Farrell Fritz, P.C.

Leaving New York? Plan For The Taxation Of Deferred Compensation

Farrell Fritz, P.C. on

Into the Fire- Let’s play a game of “Guess Who?” Here are the clues: •the legislature has called for an investigation into his mishandling of the crisis brought on by the pandemic, •he has stated that he doesn’t...more

BakerHostetler

New Hampshire v. Massachusetts - Are There Broader State Tax Implications?

BakerHostetler on

Massachusetts is taxing nonresidents who are working outside Massachusetts due to COVID-19. Seems unfair? Well New Hampshire agrees and has asked the US Supreme Court to allow it to bring suit against Massachusetts. Matt...more

Haight Brown & Bonesteel LLP

Remote workers and out-of-state employers raise tax issues

As more and more workers are required or encouraged to work from home in response to the COVID-19 pandemic, the consideration of jurisdictional income taxation becomes relevant – particularly when the worker performs services...more

Bowditch & Dewey

New Hampshire Sues Massachusetts Over State Income Taxes for Remote Work

Bowditch & Dewey on

Massachusetts employers and their employees who work out of state can add state income tax to their list of uncertainties caused by the COVID-19 pandemic. On October 16, 2020, the Massachusetts Department of Revenue issued a...more

Bowditch & Dewey

Massachusetts Adopts Emergency Withholding Rules for Out-of-State Telecommuters During COVID-19 Pandemic

Bowditch & Dewey on

Massachusetts has adopted emergency sourcing rules for personal income tax withholding from employees who are telecommuting due to the COVID-19 pandemic. The emergency rules treat employees who currently work remotely out of...more

Littler

Restructuring Operations in the Wake of California AB 5? Don’t Overlook the Tax Implications

Littler on

Businesses with operations in California have begun to identify options and implement strategies for compliance with Assembly Bill (AB) 5, which imposes the ABC test for identifying whether a worker is an independent...more

Orrick - Employment Law and Litigation

What We May See from the California Supreme Court in 2019

2018 saw some major developments in employment law, particularly in California. The California Supreme Court embraced the ABC test for independent contractors in Dynamex, and rejected the de minimis doctrine for Labor Code...more

Steptoe & Johnson PLLC

Traversing the Maze of Local Wage Tax Withholding In Pennsylvania under Act 32 – A Guide for Pennsylvania Employers

Steptoe & Johnson PLLC on

The payment and withholding of earned income taxes (“EIT taxes”) in Pennsylvania at times seems like a complex maze and is challenging for human resource professionals or a company’s payroll tax team. In May, Pennsylvania...more

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