Nexus in the Era of Telecommuting and Market-Based Sourcing (Completed)

Date: Wednesday, November 16, 2022
Instructor: Hodgson Russ LLP, Christopher L. Doyle, Emma M. Savino
Begin Time:  7:00am Pacific Time
8:00am Mountain Time
9:00am Central Time
10:00am Eastern Time
CPE Credit:  2 hours for CPAs

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

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