While state and local governments have ended or relaxed mandatory work-from-home orders and are trying to bring back the in-person workforce, some employees remain hesitant to return to in-office work for numerous reasons. This trend may result in unanticipated tax obligations for employers and employees because many of the pandemic-related hold-harmless protections from withholding and other state tax obligations caused by remote workers have ended or will send soon. Understanding that the workforce likely has shifted in the long term, a number of states have attempted to address remote work issues by adopting legislation to provide clarity to employers and employees alike.
In this SALT@Work column for the Journal of Multistate Taxation and Incentives, Eversheds Sutherland attorneys Charlie Kearns, Chelsea Marmor and Fahad Mithavayani examine the shift towards remote work, the associated tax implications for companies and developments as employers, employees, and tax administrators react to this new work style.