On April 7, 2021, the New York Legislature passed the New York Budget Bill for fiscal year 2022 (S2509âC/A3009-C) (the âEnacted Budgetâ), ushering in a slew of tax increases for businesses and high-income earners. As of the time of publication of this post, New York Governor Andrew Cuomo had not yet signed the Enacted Budget, but has indicated that he will do so. The Enacted Budget is the result of a months-long negotiation process that…
The New York State Department of Taxation and Finance (âDepartmentâ) recently published guidance stating that a nonresidentâs income will be sourced to New York State unless the nonresidentâs remote work location meets the âbona fide employer officeâ exception to the âconvenience of the employer test.â Specifically, the Department addressed a question in its FAQs regarding how to source income for Personal Income Tax purposes where a nonresidentâs primary office is in New York, but the…
Many employees continue to telecommute due to the COVID-19 outbreak. As discussed in our previous blog post on state tax nexus and apportionment issues, out-of-state employers may need to consider whether a telecommuting employeeâs activities could create nexus, exceed Public Law 86-272 protections, or impact the employerâs state income tax apportionment factor (particularly in states with a payroll factor or a sales factor where receipts are sourced based on cost of performance).
Many employees are now telecommuting due to the COVID-19 outbreak. In our previous blog post, we discussed employersâ potential withholding issues as a result of employees working remotely. In this blog post, we will discuss potential nexus and apportionment issues due to employees working remotely.