As a result of COVID, employees have fled their traditional workplaces, individuals are rethinking where they want to live, and employers have started rethinking their office-based workplace models. All of these changes impact a state’s authority to impose tax on an individual’s income and to require a company to withhold tax. This webinar examines state rules for taxing nonresidents and how those rules have changed due to the pandemic. We examine unique rules, like the convenience rule, and state-specific rules for taxing deferred compensation, and how these rules can lead to double taxation. We will also look at new and existing guidance regarding an employer’s obligation to withhold state taxes on an employee’s compensation.
Publication Date: November 2020
Designed For
CPAs, enrolled agents, CFOs, and Individuals who live and work in different states.
Topics Covered
- Withholding, Wage Allocation, and Other Considerations from the Employer's Perspective
- State Withholding Obligations of the Employer
- Withholding Thresholds
- Telecommuters — Nexus and Withholding Issues During and After COVID
- Convenience of the Employer Rules
- Other Employer Considerations with Telecommuters
- Taxing Nonresidents
- Sourcing Income
- Tax Impact of Telecommuting from the Individual's Perspective
- Deferred Compensation
- Allocation of Nonwage Income
Learning Objectives
- Describe the basic concepts of nonresident state taxation
- Identify COVID-related state tax guidance impacting employers and employees
- Recognize when employers have withholding obligations in states and how those obligations may have changed during COVID
- Identify various state withholding issues
- Recognize which type of income does not generally have a source
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
Elizabeth Pascal
Liz concentrates her practice in tax law with a focus on New York State, New York City, and multistate tax issues. She assists individual and business clients with New York State and New York City audits, including residency, sales tax, unincorporated business tax, commercial rent tax, and corporate tax audits. Liz has also helped many clients successfully navigate New York State’s voluntary disclosure process. She works with each client to determine the optimal strategy to resolve tax issues, whether negotiation through the audit process, litigation, or tax planning.
Prior to joining Hodgson Russ, Liz served as an intern for U.S. District Judge William Skretny in the Western District of New York. Before entering law school, she was a professor of comparative politics and has taught at Connecticut College, Wesleyan University, and University at Buffalo.
Ariele R. Doolittle
Ariele is a senior associate in the State & Local Tax or practice group of Hodgson Russ LLP. Her practice is focused on state and local tax matters, including civil and criminal tax controversies, with an emphasis on New York State tax litigation. Ariele’s experience includes personal income, franchise, sales and use, and fuel taxes. She has successfully represented clients before state agencies and in state and federal court actions and appeals. Ariele also advises clients on tax planning, residency planning and other administrative law matters. Prior to joining Hodgson Russ, Ariele was a law clerk at the New York State Division of Tax Appeals and Tax Appeals Tribunal.
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.