3 ms·

Because the business engagement not meaningfully in that state, if the only interaction is with a an employee with a computer screen in the state. I get, from

Because the business engagement not meaningfully in that state, if the only interaction is with a an employee with a computer screen in the state. I get, from a legal perspective, that that's not fully aligned with all court precedent, but it's OK to call it dumb that CA has any say over this situation.

pavlov 5y ago
Does the employee pay tax to California? Then they're employed in California. That doesn't seem complicated.
- bpodgursky 5y ago
  Nobody is questioning that the employee should pay income tax. The question is whether the 1-person remote "business" has a nexus in CA and should be the treated the same as a company with a warehouse and 500 employees. I'm not sure what you're missing here. I'm calling it dumb and inefficient. Yes, CA seems to have the legal right to set up a dumb system. That doesn't mean it's a Good Thing.
  - dragonwriter 5y ago
    > The question is whether the 1-person remote "business" has a nexus in CA It does; that nexus consisting of 100% of its labor force working in the state. > and should be the treated the same as a company with a warehouse and 500 employees That's not the question, since a company with a warehouse and 500 employees in California is not treated the same, as it is subject to a whole lot of rules and mandates that a single-employee remote-only foreign-HQ’d business is not.
  - vkou 5y ago
    If I open a branch in California, and hire one person, is my firm subject to California's laws? Yes, obviously. The part of my firm that is operating in California is. Why does not having a physical location for the office change anything?
- jleyank 5y ago
  Don’t forget that city and or county taxes can get involved as well as state and federal. Hence contractors. When I talked to euro companies as a n American it was never hire w/o moving to eu. Could contract but then it was all my problem.

pavlov 5y ago

Does the employee pay tax to California? Then they're employed in California. That doesn't seem complicated.

bpodgursky 5y ago
Nobody is questioning that the employee should pay income tax. The question is whether the 1-person remote "business" has a nexus in CA and should be the treated the same as a company with a warehouse and 500 employees. I'm not sure what you're missing here. I'm calling it dumb and inefficient. Yes, CA seems to have the legal right to set up a dumb system. That doesn't mean it's a Good Thing.
- dragonwriter 5y ago
  > The question is whether the 1-person remote "business" has a nexus in CA It does; that nexus consisting of 100% of its labor force working in the state. > and should be the treated the same as a company with a warehouse and 500 employees That's not the question, since a company with a warehouse and 500 employees in California is not treated the same, as it is subject to a whole lot of rules and mandates that a single-employee remote-only foreign-HQ’d business is not.
- vkou 5y ago
  If I open a branch in California, and hire one person, is my firm subject to California's laws? Yes, obviously. The part of my firm that is operating in California is. Why does not having a physical location for the office change anything?
jleyank 5y ago
Don’t forget that city and or county taxes can get involved as well as state and federal. Hence contractors. When I talked to euro companies as a n American it was never hire w/o moving to eu. Could contract but then it was all my problem.