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Mobile Employees

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In a recent blog post, we discussed the tax withholding and reporting complexities that can arise when employees earn equity or deferred compensation while working in more than one state. Therefore, it is timely to report on an effort at the federal level to harmonize threshold tax requirements in multi-state employment scenarios. New 30-Day Rule On June 20, 2017, the “Mobile Workforce State Income Tax Simplification Act of 2017” (H.R. 1393) passed the House of…

Employees today are increasingly mobile and companies that grant equity or have deferred compensation programs are faced with complex withholding and reporting requirements in the various states.  Employees who move between states before a taxable event occurs with respect to their equity or deferred compensation are often subject to tax in both their state of residence and states where they provided services, but no longer reside (i.e., states where they are considered a nonresident). States…