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

The COVID-19 pandemic prompted a drastic shift to remote work, and two years later, many are still working remotely. Some people are working remotely in their home state, and others in states in which they decided to shelter in place. Even as states continue to reopen their economies, 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, Ariele R. Doolittle of Hodgson Russ LLP, will help you understand how states have responded to the recent 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

• Sourcing Employee Wages
• Corporate Income Tax Nexus
• State Withholding Tax Considerations for Employers
• Convenience of the Employer Rule

Learning Objectives

• Describe the corporate tax implications of having employees work in different states
• Recognize and gain a practical understanding of where (in which states) an employer may have 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