State Tax Traps for Employers and Employees Post-Wayfair

Nexus Triggers, State Withholding Rules, Personal Income Tax Allocation, Resident Credits and More

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


Conducted on Tuesday, January 15, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax professionals and advisers guidance on differing state rules on withholding tax obligations for employers and personal income tax allocation for employees operating or working in multiple jurisdictions in the post-Wayfair environment. The panel will discuss nexus triggers, key challenges under a variety of state tax rules, income tax allocation issues, resident credits and methods for maintaining compliance.

Description

The increase in employers and employees operating or working in other states triggers state withholding tax registration. With changes to nexus thresholds and filing obligations following the Wayfair decision, tax professionals and advisers must understand how these changes interact with the complex state tax rules and obligations regarding withholding, personal income tax allocation, and available resident credits.

For out-of-state employers, many states impose withholding tax administrative duties if the employer sends the employee to work in the other state or permits an employee to telecommute. With many companies registering in multiple states for sales taxes after Wayfair, they must now confront their obligations in those states with regards to employment taxes. Failure to adhere to such duties can lead to audits that may result in even more tax obligations. Employers must identify applicable state tax rules and filing requirements to avoid any unintended penalties.

For non-resident employees, tax advisors must also focus on the interplay between state employment tax obligations and personal income tax rules for traveling employees in multiple states. Employees must consider how to comply with a complex web of state rules for personal income tax allocation and any available exemptions or resident credits to minimize their tax liability.

Tax professionals and advisers must grasp rules in each state for potential tax and keep pace with state tax law developments in response to the economic nexus standards of the Wayfair case.

Listen as our panel discuss differing state tax withholding rules, personal income tax allocation, resident credits, and provide methods to ensuring registration, reporting and administrative compliance with state tax laws.

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Outline

  1. Principals of state tax and nexus in this area
  2. Recent state tax law developments post-Wayfair
    1. Specific issues with withholding and unemployment taxes
    2. Personal income tax allocation and resident credits
    3. Administrative challenges and options

Benefits

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

  • What is the impact of Wayfair on employer’s withholding obligations and compliance?
  • When does telecommuting trigger nexus for an out of state company?
  • Ensuring state tax withholding registration, reporting and compliance
  • What are the standards for non-resident employee visits to different states requiring companies to register for withholding tax purposes?
  • Personal income tax allocation and resident credits

Faculty

Pascal, Elizabeth
Elizabeth Pascal

Partner
Hodgson Russ

Ms. Pascal concentrates her practice in tax law with a focus on New York State, New York City, and multistate tax...  |  Read More

Silverman Herman, Debra
Debra Silverman Herman

Partner
Hodgson Russ

Ms. Herman is widely recognized for her experience in state and local taxation. She works with a variety of...  |  Read More

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$247