PBA Tip of the Day brought to you by Emily A. Griffin, CPA, MST with Desert Foothills Accounting & Tax Services, PC (623) 551-3100
What tax implications does having employees that work in multiple states? Emily has the answer.
A new bill in the U.S. Congress would simplify complex tax reporting rules that employers and employees face as a result of numerous state income tax laws. The Bill would simplify compliance when an employee works outside their home state. Under the new bill, earnings would not be subject to state income tax withholding outside an employee’s home state unless the employee work in that state for more than 30 days. Most states allow a credit for an individual who is taxed on income in their home state and also in a state that they work in outside the home state. The rules are complex and can lead to double taxation on income if one is not careful. Contact Emily for more information.