How This Impacts Mobility
Establishment of a tax nexus alters business’s obligations. Additionally, employers can face penalties and interest for failing to withhold for employees. Employees can also face increased tax obligations. It’s important for states to issue guidance as to how they plan to treat temporary telecommuting arrangements triggered by the COVID-19 pandemic, and for Worldwide ERC® members to monitor these issues proactively to insure they comply wherever they have employees working remotely
Worldwide ERC® continues to advocate for limitations and simplifications of states’ taxation of non-resident workers, including enactment of the Mobile Workforce State Income Tax Simplification Act (H.R. 5674) which is supported by Worldwide ERC®.