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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 treat
by 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 agoIf 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?