Tax Implications in a New Remote Work Environment: State Tax Nexus and Income Tax Issues (Completed)

Date: Monday, April 26, 2021
Instructor: Timothy Noonan
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs

Due to the COVID-19 pandemic, there was a drastic shift to remote work, and one year later, many are still working remotely. Some people are working remotely in their home state, and others in states in which the decided to shelter in place. Even as states continue to open up their economies over the coming months, it does not change the fact that employers have been allowing employees to work remotely for over a year in different states. Allowing employees to work remotely from states in which they do not normally work can create a host of issues for employers, but the two big tax issues relate to nexus and income tax.

First, will the presence of an employee working from home create taxable nexus for the employer in that state?

Second, for income tax purposes, which state is owed income tax when an employee is working remotely from an out-of-state location? Is it possible that states could have contradictory rules, creating a double tax situation for many employees? (Spoiler alert: yes!).

In a straightforward and easy-to-understand manner, highly regarded state tax practitioner, Timothy P. Noonan, will help you understand how states have responded to the new remote work environment and identify potential issues for both individuals working remotely and their employers.

Who Should Attend
All CPAs, enrolled agents, tax return preparers, tax attorneys, and other practitioners working with clients on multistate tax compliance.

Topics Covered

  • Corporate Income Tax Nexus
  • Sales Tax Nexus
  • Nexus During COVID-19
  • Convenience of the Employer Rule
  • Wage Sourcing During COVID-19

Learning Objectives

  • Describe the corporate and sales tax implications of having employees work in different states
  • Identify the states that have issued differing nexus rules as a result of COVID-19
  • Recognize and gain a practical understanding of where (in which states) an employer may have sales and/or corporate income tax nexus
  • Identify the number of states that have a "convenience rule"
  • Recognize how to advise clients on sourcing of wages received while working remotely

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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