Non-Resident and Mobile Workers: State Tax Traps for Employers

Anticipating and Avoiding Unnecessary Withholding Tax Duties and Nexus Triggers

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, April 25, 2017
Recorded event now available


This webinar will familiarize corporate tax professionals with differing state policies on withholding tax obligations for non-resident employees or those employees who work in other states periodically. The panel will outline a framework for companies to avoid unplanned and unwanted nexus, taxes or administration.

Description

Most large and mid-sized companies periodically send employees off to visit customers, company sites or sales prospects in other states. Odds increase every year that those visits will trigger unwanted state withholding tax registration or exceed P.L. 86-272 nexus protections.

Many states impose withholding tax administrative duties if an out-of-state firm sends staff there for even a few days a year or permits an employee to telecommute. Costly withholding registration can lead to audits that scrutinize for even more tax obligations. Congressional efforts to set a minimum physical presence standard for states have stalled.

Tax specialists must grasp rules in each state for potential tax implications due to visits to that state by non-resident employees—and keep pace with developments like the MTC model law and others. Tax considerations must play a prominent role in decisions about where to send people and how often.

Listen as our panel of veteran state tax advisers deconstructs the trend toward non-resident tax allocation with the use of specific state policies and examples of real taxpayers to prepare you to properly respond to that trend.

Outline

  1. Principals of state tax and nexus in this area
  2. Latest developments in state positions
    1. Laws, regulations, court rulings
  3. Potential federal and multi-state solutions to the issue
  4. Particular issues with unemployment taxes
  5. Particular issues with withholding taxes
  6. Administrative challenges and options
    1. Trends in audit
    2. Background on HR, stock plan, relevant payroll systems
    3. Challenges with employee movement

Benefits

The panel will address these and other on-point issues:

  • Withholding tax issues: What are the de minimis standards for non-resident employee visits to different states requiring companies to register for withholding tax purposes? When does telecommuting trigger nexus for an out of state company? How much tax should be allocated to each state?
  • State corporate income tax issues: For which states can occasional employee visits for certain purposes actually exceed P.L. 86-272 protections? Can withholding tax registration start a domino effect toward an eventual corporate income tax bill?
  • Corporate tax department strategies: How can tax professionals effectively oversee and influence their companies’ use and management of traveling employees and telecommuters?

Learning Objectives

After completing this course, you will be able to:

  • Ascertain which key states have the tougest withholding tax rules, and possibly even exclude P.L. 86-272 protections
  • Discern the de minimis standards for non-resident employees in different states
  • Identify when to register for state withholding tax
  • Establish best practices for your company’s policies on traveling employees and telecommuters

Faculty

Mary Jo Dolson, Partner
Skoda Minotti, Tampa, Fla.

Ms. Dolson has more than 30 years of experience in the SALT arena and nearly every state, including corporate income, franchise, sales and use, and property taxes. She speaks often to professional groups on multi-state tax topics.

Debra Silverman Herman, Partner
Hodgson Russ, New York

Ms. Herman is widely recognized for her experience in state and local taxation. She works with a variety of clients to address the state and local tax impact of their multistate activities from both a planning and an audit and controversy viewpoint and on complex transactions. She counsels clients with respect to corporate income and franchise taxes, bank taxes, utility taxes, unincorporated business taxes, sales and use taxes, gross receipts taxes, excise taxes on real property transfers, rent and occupancy taxes, and withholding taxes. She is also a nationally recognized author on state tax topics.

Elizabeth Pascal, Partner
Hodgson Russ, Buffalo, N.Y.

Ms. Pascal concentrates her practice in tax law with a focus on New York State, New York City, and multistate tax issues. She assists individual and business clients with New York State and New York City audits, including residency, sales tax, unincorporated business tax, commercial rent tax, and corporate tax audits. She also helps clients successfully navigate New York State’s voluntary disclosure process.


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Program Materials

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Program Materials

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Customer Reviews

I enjoyed the speakers realistic and practical comments.

Shawndel Rose

Brown Smith Wallace

Very informative and great information!

Charles D. Shapero

Carr, Riggs & Ingram

The webinar was fast paced and comprehensive.

Lorraine Round

SAP

I thought that the speakers were very knowledgeable and their presentation materials will be good reference guides.

Claudia Del Castillo, CPA

Sol Schwartz & Associates

The program had excellent presenters that were extremely knowledgeable.

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State Income Tax Advisory Board

David Adler

Director of Multistate Tax Services

Deloitte Tax

Elizabeth Bowman

Tax Research Analyst

ADP Tax Credit Services

Stephanie Anne Lipinski-Galland

Partner

Williams Mullen

Don Griswold

Tax Group Partner

Crowell & Moring

Walter Pickhardt

Partner

Faegre & Benson

Richard Pomp

Professor of Tax Law

University of Connecticut

Michael Press

Managing Principal

M.R. Press Consulting

Tammy Propst

President

taxadvantagegroup

Richard Weiss

Tax Research Manager

ADP Tax Credit Services

Thomas Zaino

Managing Member

Zaino Hall & Farrin

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