TAX2216. The surprising state tax consequences triggered by employees who work from home

To submit a question or participate in polling, click the link above. The COVID-19 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 state tax consequences of this new paradigm. Does the employee’s presence in another state mean that the employer is doing business (and subject to tax) in that state? What are the state tax concerns of an employee who is employed in one state while working in another? Can two states tax the same earned income (hint: yes they can)?

Learning Objectives:

• Identify the multistate business tax obligations created by employees working in other states
• Recall the state income tax rules that apply to employees who work remotely