The way we work is changing, and tax codes have not caught up. The coronavirus pandemic has dramatically accelerated a trend toward remote, flexible, and multistate work arrangements, but existing tax codes often penalize employers and employees alike as companies provide workers with greater flexibility.

Not only will many workers face filing requirements in multiple states, but in some cases, so-called “convenience rules” will obligate them to pay taxes on the same income to two states, with no offsetting credits. Even working remotely for a single day in some states is enough to trigger filing obligations. Hybrid work arrangements, moreover, will yield far more employees working in an office in one state some days, and from home in a different state for others. For businesses, an employee’s decision to work remotely from another state can establish tax nexus that did not exist previously and can sometimes result in the company’s income from services being taxed in two states.

As Americans settle into a much more workplace-flexible new normal, many taxpayers—employers and employees alike—continue to grapple with the tax implications. Our panel of tax experts is here to explain the issues facing businesses and workers, discussing key questions such as:

• What can cause a worker to trigger business tax liability where the business previously lacked nexus?
• Under what circumstances can remote workers lead to double taxation of business income?
• How should a business withhold for employees that live and work in a different state than its offices?
• In the absence of federal legislation, would workers need to file an income tax return in every state they worked in, even if only for a day?
• What reforms could state tax codes incorporate to prepare for an increasingly remote workforce to attract mobile workers but also address revenue needs?

Learn more at: https://taxfoundation.org/events/talking-tax-reform-mobile-workforce-nexus-telework/