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
Compiled by Priya D. Nair
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)