Weekly Round-Up: Why State Taxation Is Hampering the Evolution of a Mobile Workforce

Companies and their employees face many deterrents to telecommuting, such as the system currently in place for taxing the income of multi-state employees, Nicole Belson Goluboff, author of The Law of Telecommuting (ALI-ABA 2001 with 2004 Supplement) and Telecommuting for Lawyers (ABA 1998) and the legislative advisor for the Telework Coalition, states.

Goluboff’s comments were part of a larger article in this week’s issue of the Bloomberg BNA Weekly State Tax Report in which she offers insight into the benefits of telecommuting, the challenges faced by both employees and employers, and offers a solution to the problem.

The deterrents in personal income tax policy include the undue confusion and compliance costs arising from determinations about where a multi-state worker has nexus and where her employer must withhold; the undue confusion and compliance costs arising from determinations about how a multi-state worker and her employer should apportion the worker's tax; and the steep tax penalty that a state may impose on a nonresident for choosing to work in more than one state,” she says.

However, the burdens surrounding the state taxation of multi-state workers can be eased by enacting the Mobile Workforce State Income Tax Simplification Act, with minor changes, together with the Multi-State Worker bill, Goluboff writes.

The complete article by Goluboff can be read here .

Continue the discussion on Bloomberg BNA’s State Tax group on LinkedIn :   What are your thoughts on the challenges faced by companies and their workers to telecommuting?

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library. 

In other developments…

A Constitutional Convention Poses Grave Risks , by the Center on Budget and Policy Priorities

Reviewing Rhode Island’s New Budget , by the Tax Foundation

District of Columbia – Emergency legislation brings significant changes to business, individual, sales and other taxes , by PwC

Compiled by Priya D. Nair

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