Category: Timely Opportunities
As businesses expand their remote workforce in response to the COVID-19 pandemic, they should consider the tax compliance implications. A number of our clients have employees teleworking out-of-state which impacts their multistate tax reporting. In-state employee activities may trigger nexus as well as additional withholding and registration requirements. Nexus is a business’s connection between a state or local jurisdiction that allows the state to tax a taxpayer. The laws vary by state so it’s important for employers to understand the reporting requirements, so they aren’t caught off guard with an unexpected tax burden.
This article, Beware: Teleworking Arrangements May Cause State Withholding Issues, provides more information on teleworking and state income tax withholding, as well as links to additional state tax resources covered in the article. If you would like to discuss how your business may be impacted or would like more information about Kerkering, Barberio & Co.’s state and local tax services, please contact me at (941) 365-4617.