A Pinch of SALT: State Withholding Tax Considerations Post-Mobile Workforce

Originally published in State Tax Notes on November 12, 2012.

State and local withholding tax laws are often described as a patchwork, allowing only the most sophisticated and diligent employers to approach full compliance. If enacted, the federal Mobile Workforce State Income Tax Simplification Act would provide much needed uniformity for employers and ultimately increase compliance for taxing authorities by establishing uniform state-level thresholds for employer withholding for nonresidents and personal income tax filing obligations for nonresidents. However, the federal withholding legislation will not resolve all state (or local) withholding tax questions. Thus, employers will continue to struggle with compliance for state and local employment taxes, including wage and non-wage withholding for personal income taxes.

Although the business community (and many state administrators) remain hopeful that Congress will enact the mobile workforce act and greatly foster state withholding tax compliance, employers will have to analyze their state withholding tax obligations regarding many other benefits or payments such as nonqualified stock options, deferred compensation, separation payments, retirement payments, and other compensation for services such as accrued vacation payments. Employers will continue to evaluate worker classification questions, both at the employee and employer levels, for various state and local employment tax purposes. This A Pinch of SALT highlights these thorny questions that many employers face, and will continue to face, beyond enactment of the mobile workforce act.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Eversheds Sutherland (US) LLP | Attorney Advertising

Written by:


Eversheds Sutherland (US) LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.