News & Analysis as of

State Taxes Out-of-State Employees

Jackson Lewis P.C.

New York Expands Rationale For State Income Tax “Convenience Rule”

Jackson Lewis P.C. on

The November 30, 2023, opinion of a New York administrative law judge in In the Matter of the Petition of Edward A. and Doris Zelinsky upholds the state’s so-called income tax “convenience rule” with an expanded legal...more

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

It’s 2023: Do You Know Where Your Workers Are? Key Considerations for Managing a Remote Workforce

Even with an increasing number of employers calling their workers back into the office following the pandemic, many employees across the United States are still working from home or otherwise working remotely. While many...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

Miller Canfield

Mobile and Remote Employees Bring State Tax Compliance Issues

Miller Canfield on

Companies with workers who travel to other states for work (mobile workers) or those who work permanently from another state (remote workers) face unique state tax compliance challenges. For years, efforts to enact federal...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

Rivkin Radler LLP

Push-Back On New York’s Mission to Tax Non-New Yorkers?

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Last week, Governor Murphy of New Jersey staked out a position on New York City’s congestion pricing proposal, stating that it “can’t be ‘on the backs of New Jersey commuters.’” “Whether it’s how we’re taxed by our...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

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

Rivkin Radler LLP

Revised Nonresident Audit Guidelines For New York Statutory Residence

Rivkin Radler LLP on

Last Week- What a week it was. It began relatively well, with the Cowboys losing the NFC wild card game, albeit to a California team. It ended disturbingly, with the Arizona Democratic Party censuring Senator Sinema...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

Rivkin Radler LLP

Like A Good Neighbor, New York Is Still Free To Tax You – Sorry For The Inconvenience

Rivkin Radler LLP on

NH vs MA- Last week, the U.S. Supreme Court denied New Hampshire’s request that the Court exercise its original jurisdiction under the Constitution[i] to hear and resolve a conflict involving the taxation by Massachusetts...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

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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

Amundsen Davis LLC

So Your Employee Wants To Work Remotely Out Of State

Amundsen Davis LLC on

Given the “new normal” of remote work for many employees throughout the country, the question as to whether to allow an employee to work in another state – either permanently or temporarily – has become something employers...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

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

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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