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To add to this, in over 17 states there are also city or county level income taxes[1] that you have to be set up to handle. Then there's the potential for each
by cosmie 6y ago
To add to this, in over 17 states there are also city or county level income taxes[1] that you have to be set up to handle.
Then there's the potential for each employee's address to be considered a nexus, since each of their homes becomes a de-facto company presence. Potentially subject to local registration, licensing and taxation by local municipal authorities, in addition to just the state level requirements. If you have a presence in the state, and your employee's official work location is that location, then you only have to deal with that local registration once wherever the presence is located. But if you don't have a location the state, or you have employees who are officially designated as work from home (rather than unofficially working from home while being designated as assigned to an office), then this quickly scale into a giant mess of regulation to navigate[2].
[1] https://taxfoundation.org/local-income-taxes-city-and-county-level-income-and-wage-taxes-continue-wane/ https://taxfoundation.org/local-income-taxes-city-and-county...
[2] https://smallbiztrends.com/2018/04/remote-employee-compliance.html https://smallbiztrends.com/2018/04/remote-employee-complianc...