• Skip to primary navigation
  • Skip to main content
  • Skip to footer
716-633-1373 8321 Main Street, Williamsville, NY 14221
Tronconi Segarra & Associates

Tronconi Segarra & Associates

Williamsville, Buffalo & Western New York CPA

  • Client Toolkit
  • Request A Proposal
  • Pay Securely Online
  • Home
  • About
  • Our Team
  • Services
    • Accounting & Auditing
      • Financial Statement Auditing
      • Fraud/Forensic Accounting & Auditing
      • Internal Auditing
      • Performance Auditing
      • Governance Services
    • Tax Services
      • Business Taxation
      • U.S./Canadian Border Services
      • Cost Segregation Studies
      • Estates/Trusts/Private Foundations
      • Individual Taxation
      • International Tax
      • State & Local Tax
      • Exempt Organizations
      • Employee Benefit Plan Services
    • Small Business
      • Bookkeeping / General Ledger Services
      • Franchisee Services
      • Accounting for PPP, EIDL & Other COVID-19 Relief Programs
    • Outsourcing
    • State & Local Tax
      • Services – Manage Risk
        • Nexus Study
        • Registration
        • Voluntary Disclosure/Amnesty
        • Tax Research
        • Tax Compliance
        • Audit Defense
      • Services – Add Value
        • Refund Study
        • Utility Study
        • Credits & Incentives
        • Transaction Planning
        • Due Diligence
        • Outsourcing
      • Insights
    • Transaction Advisory Services (M&A)
    • International / Cross-Border
      • International Tax
    • Consulting Services
      • Executive Level Services
      • Litigation Support Services
      • Valuation Services
      • Succession Planning
    • Governmental Services
  • Industries Served
  • COVID-19
    • ERTC Assistance
    • COVID-19 Resource Center
      • CARES Act
      • Families First Coronavirus Response Act (FFCRA)
      • Coronavirus Preparedness and Response Supplemental Appropriations Act
    • COVID-19 Tax Relief
    • Unemployment Insurance Benefits
    • State & Local Grant and Aid Programs
    • COVID-19 Webinars
    • COVID-19 Blog Posts
    • Paycheck Protection Program: Forgiveness Calculation Services
  • Blog
  • Careers
  • Contact

Considerations for a Remote Workforce

September 8, 2021

As the current work environment continues to evolve, employers are seeking out additional information on the ability to work remotely and what tax impact that has on the business and its employees.

Employers should begin by considering a few questions:

  1. In which state(s) do we have employees doing work at a company facility or in a home office?
  2. In which state(s) are we registered to do business for income tax, withholding tax or sales tax purposes?

Whether in an informal or detailed format, your responses should be clearly documented. This information will allow management to conduct a full risk analysis to determine if there is any tax exposure and how those risks should be addressed.

In most situations, the physical presence of an employee in a particular state is enough to create nexus, meaning a connection to that state, which may necessitate tax filings. Various states have provided some relief for employees temporarily working in another state given Covid-19, with the intent to return to the normal work location at some point. Those various state relief measures are set to expire at varying dates.

Some states follow the convenience rule, which says that any days worked in another state will only be considered actual days worked in that separate state if “it is for the convenience of the employer” and not the employee. There are five states that follow the convenience rule: New York, Connecticut, Pennsylvania, Delaware and Nebraska.

Other states have adopted reciprocal personal income tax agreements with one or more states, including the District of Columbia, that allow income to be taxed in the state of residence, even though it is earned in another state, as long as the income-source state is a party to the reciprocity agreement.

One final item to consider is state unemployment taxes, which may not line up with the states of withholding  in all cases. The rules for state unemployment tax are based on localization, base of operations, control, and then residency.

For additional information, please contact Michele Loretto, CPA, Manager, Small Business Department, at or 716.633.1373.

Filed Under: General Business, Human Resources, Tax

Contact Us

  • This field is for validation purposes and should be left unchanged.

Footer

Contact Information

Tronconi Segarra & Associates LLP
8321 Main Street
Williamsville, NY 14221
Phone: 716-633-1373
Fax: 716-633-1099

Ulrich City Centre
175 Walnut Street, Suite 2
Lockport, NY 14094
Phone: 716.438.2190
Fax: 716.438.2450

Contact Us

Links

  • Home
  • About
  • Services
  • Industries Served
  • Leadership Team
  • Blog
  • Careers
  • Contact

Copyright © 2023 Tronconi Segarra & Associates · Terms of Use · Privacy Policy · Site by OMA Comp