The drastic shift to remote work has created a host of issues for multistate companies, but the main tax issues relate to nexus, apportionment and withholding on compensation. Will the presence of an employee working from home create taxable nexus for the employer in that state? How do receipts from service businesses and digital products get sourced when the service provider is using telecommuting personnel to perform those services? And what are the withholding obligations of that employer?
The Supreme Court’s Wayfair decision may create nexus in additional states, and more states are evolving to single-factor apportionment regimes. So how corporations source receipts to the various states is more important now than ever before.
This webinar will guide you through the legal maze helping you identify the implications of remote work, what activities in the state might subject a company to nexus for sales tax, income tax, and other tax types, and how income should be sourced in those that states where the company has nexus.
Topics Covered
- Sales Tax Nexus
- Corporate Income Tax Nexus
- Employer Withholding Obligations
- Convenience of the Employer Rule
- Brief History of Apportionment Formulas
- Market-Based Sourcing of Receipts
- Throwback and Throw-out Rules
- State Survey of Receipts Sourcing
- Economic Nexus Ramifications of Market Based Sourcing
Learning Objectives
- Identify the corporate, sales tax and withholding tax implications of having employees work in different states
- Recognize and gain a practical understanding of where (in which states) an employer may have sales and/or corporate income tax nexus
- Identify the states that have a "convenience rule" and the ramifications
- Describe the nationwide shift from cost of performance to market-based sourcing of receipts
- Recognize which states use market-based or cost of performance sourcing
Level
Overview
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
Hodgson Russ LLP
Hodgson Russ has approximately 200 attorneys in offices in Albany, Buffalo, New York City, Rochester and Saratoga Springs, New York; Hackensack, New Jersey; Palm Beach, Florida, and Toronto, Canada.
We serve a wide range of clients, from multinational and privately held corporations to nonprofit organizations, governmental entities, and individuals. Our attorneys practice in every major area of law and use multidisciplinary work teams to serve the specific, often complex, needs of our clients.
Christopher L. Doyle
Chris is the firm's State & Local Tax (SALT) Practice Leader. He focuses primarily on New York State and New York City business taxes, including corporate income tax, unincorporated business tax, flow-through entity income taxation and sales and use taxes.
Chris provides counsel for tax-wise transaction structuring as well as tax controversy representation at every level, from audit representation to representation before New York's Court of Appeals. He frequently represents taxpayers before New York State and New York City tax agencies and administrative hearing institutions.
Chris’ primary goal is to have the members of the SALT practice deliver timely, creative, practical and otherwise excellent service to its clients. He also helps the practice's partners envision and adopt amendments to the practice's strategic plan, a plan that is rolled out to SALT’s internal stakeholders (both lawyers and non-lawyers) for implementation.
The Hodgson Russ SALT Practice is constantly increasing its geographic footprint as client’s require progressively less of our attorneys’ face-to-face time and revenue-starved states press progressively harder both in the enactment of constitutionally-questionable tax laws and in the over-zealous interpretation of those laws on audit.
Emma M. Savino
Emma Savino is an associate in the State and Local Tax Practice. She handles disputes involving the New York State and City Tax Departments and counsels businesses and individuals in a range of multistate, state and local tax issues. She advises clients on all aspects of state and local tax from planning and compliance, to audit and litigation.
Prior to joining Hodgson Russ, Emma served as a volunteer law clerk for United States District Judge William Skretny of the Western District of New York. She was also employed as a law clerk at a local firm for nearly two years. Prior to attending law school, Emma worked for TJX Canada as an allocation analyst.