State Tax Considerations of a Mobile Workforce
Online Webinar
Blank Rome partner Nicole L. Johnson and associate Madison A. Ball will present the myCPE live webinar “State Tax Considerations of a Mobile Workforce” on Friday, June 2, 2023, at 10:00 a.m. EDT.
ABOUT THE PROGRAM
The COVID-19 pandemic spurred a massive shift to remote and hybrid work arrangements in the United States. Currently, many employers are rethinking the need for expensive office spaces and shifting to either a partially or fully remote workforce. While this offers many benefits, it also creates complex state tax considerations that employers and employees need to be aware of.
Employees working remotely (including work-related travel) in states outside of where the employer normally operates can create nexus for their employers for corporate income tax, unemployment tax, and sales and use tax purposes. Remote or traveling employees may also create additional personal income tax filing obligations for themselves. Aside from nexus for the employer, the presence of employees working remotely in states outside of where the employer normally operates could impact an employer’s state income tax liability in the state, by creating a “payroll factor” and “property factor” where taxable income in a state is calculated using a three-factor apportionment method.
In addition, states lack conformity with their rules for employers withholding income tax on traveling employees, as well as for employees filing personal income tax returns when traveling to nonresident states for work. Employers must stay on top of their employees’ work locations to ensure proper filing – and no penalties!
While there are many benefits to a mobile workforce, there are also several state tax considerations that need to be addressed.
This presentation will provide a primer on state and local taxation, discuss the impact of a mobile workforce on tax compliance for employees and employers, address considerations related to personal income tax, employer nexus and apportionment, and state responses to the growing mobile workforce. This presentation will also discuss best practices that companies can adopt to streamline and ensure compliance.
CPE credit is available.
For more information and to register, please visit the webinar webpage.