We live and work in an interconnected, mobile economy. The modern workforce isn’t stationary—many people travel all over the country to do their jobs. And as businesses across the country adapt their post-pandemic operations, many companies are choosing to move to hybrid or fully remote models, allowing employees to work in a location of their choice and travel to the office only periodically. Many workers are embracing this newly-flexible environment by traveling across state borders while working remotely. But few realize that when a person crosses state lines for work, it can have major tax implications for both the employee and the employer.
Right now, employees who travel outside of their states of residence for business purposes are subject to onerous administrative burdens because, in addition to filing federal and resident state income tax returns, they may also be legally required to file an income tax return in every other state into which they traveled — even if they were there for only one day. In many states, employers are also required to begin withholding on behalf of the employee in those states, as well.
The Mobile Workforce Coalition works to create a simple, streamlined system that makes it easier for employers and employees to comply with and pay nonresident state income taxes when they travel. The Coalition works to advance this legislation in state legislatures and in the U.S. Congress to create a simpler system that saves resources for workers, employers, and states alike.
States currently have inconsistent, varying standards and requirements for employees and employers when it comes to nonresident state income taxes. Read More.
The Mobile Workforce State Income Tax Simplification Act provides for a uniform, fair, and easily administered law and helps to ensure that the correct amount of tax is withheld. Read more.
There are many ways you can get involved with the Mobile Workforce Coalition, including Steering Committee and Contributing Member opportunities. Read more.