Who knew you could have so much fun taking about tax and remote employees? Tax attorney, Jamie Szal explains the various tax implications for employers with remote employees during and after the pandemic. During the pandemic, states treated business with remote employees differently for tax purposes. For example, some states took a hard line approach and announced the pandemic-necessitated remote working created nexus for the employer for all purposes, while some states announced they would not enforce nexus against out of state companies by virtue of the pandemic-related in-state presence of telecommuting employees.
If your business has employees working outside of the state in which the company does business, it is important to determine what state the employee is actually working in, as there may be additional tax considerations. Some states have allowed a waiver period, and some did not. Some states have allowed a transition period, and some have not. In addition to identifying where the businesses employees were located during the pandemic, businesses should also take proactive steps to determine if it will allow its employees to continue working remotely going forward relative to tax and other compliance issues.
Now is the time to engage in strategic planning business considerations. Businesses who have not already don't so need to determine:
1. Where the employees have actually been working throughout the pandemic.
2. Will the business continue to allow a remote or hybrid workforce.
3. Where the businesses' employees will be working in September 2021.
4. What are the going-forward tax implications of the work environment.
5. Will the business hire remote employees.
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Disclaimer: The information on the Employment Experience is for educational purposes only. The information in this episode does not constitute legal advice, and does not create an attorney client relationship between either Jamie Szal or Karly Wannos. Karly Wannos is licensed to practice law in Florida only, and is not a CPA or accountant. Please consult with an attorney before making a