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Showing posts from April, 2014

The Mobile Workforce SIT Simplification Act: Fixing The Conundrum of State Nonresident Payroll Withholding Rules

Federal Legislation With State Taxation Impact:  On April 29th the U.S. House Judiciary Committee will hold a hearing to discuss a federal solution to the lack of uniformity that exists among states as it relates to an employer's responsibility to withhold state income tax from the wages of its mobile workforce in non-resident states. 

One reason this federal legislation is being seriously considered stems from the fact that many companies are expanding their multi-state (and international) footprint. This expansion is often accompanied with the deployment of a mobile workforce, and a requirement to withhold and remit state income tax on the wages of employees who perform services in non-resident states.  

As states continue to search for revenue sources and, some would argue, transfer their tax burden to out-of-state business and individual taxpayers; non-resident payroll withholding is an area that employers who wish to be compliant cannot ignore. Unfortunately, as is the case wit…