Thursday, May 17, 2012

Possible relief for employees working in multiple states!

Employees who live in one state but who travel to and work for an employer in other states are currently subject to the the income tax laws of the other states while occupying space in the other state.  Recent legislation has passed the house that would give these "traveling" employees some relief. 
The U.S. House of Representatives has passed the Mobile Workforce State Income Tax Simplification Act of 2012, which, if enacted, would prohibit an employee’s wages from being subject to personal income tax or withholding and reporting requirements in any state other than the employee’s state of residence and a state in which the employee is present and performing employment duties for more than 30 days during a calendar year. The Act would not apply to professional athletes, professional entertainers, or certain public figures. It would be effective January 1 of the second year after the date of enactment.