NTA2115. Working Remotely - Tax Issues for the Employer and the Employee

The pandemic triggered an exodus of workers from office buildings, as employees sought the safety of their homes and other remote locations. While some of this displacement was temporary, certain employees may continue to work remotely for years to come. This session will explore the tax consequences of this new paradigm. Does the employee's presence in another state or country mean that the employer is doing business (and subject to tax) in that state or country?  What are the state tax concerns of an employee who is employed in one state while working in another?  And how do the federal and state wage and fringe benefit rules apply to travel expenses to other work locations, including the office, equipment, tools, and other resources needed by employees to effectively work remotely?

Learning Objectives:

• To identify the business tax obligations that may be created when employees work in other states or countries.
• To understand the impact of state income taxes on employees who work in more than one state.
• To recognize the federal and state taxes on expenses commonly incurred as a result of remote working and how some of that taxation can be eliminated.