WFH? The Tax Authorities May Have a Surprise for YOU!

By Jim Elliott, President
James G. Elliott Co., Inc.

June 1, 2021

With the help of our HR, tax, and legal advisors, we have been investigating some of the unexpected implications of staff working from home instead of an office.  There may be serious tax consequences for both employers and employees.  

Here’s just one example: An article dated December 11, 2020 in the Journal of Accountancy reports that 55% of respondents who worked remotely in 2020 were not aware of potential tax consequences.  A survey conducted for the AICPA by the Harris Poll also revealed that 47% don’t realize that each state has its own laws about remote work.  With offices in three states, we must learn about the pertinent laws in each.

“New York, for example, has already issued guidance in FAQs saying that out-of-state telecommuters working for Empire State employers will still be considered as working in New York for state tax purposes unless the employer ‘has established a bona fide employer office at your telecommuting location.’ “  

https://www.journalofaccountancy.com/news/2020/dec/surprise-tax-bills-for-some-teleworkers.html

I strongly urge you to learn about these issues before they affect you-- and your people-- unexpectedly.