Remote work and its tax implications

Remote work opened up a whole world of possibilities.
Especially for the people living in states with a higher cost of living.
They can now move to much more affordable areas.
And keep their well-paying jobs.

Good for the employees.
And good for the companies.

All these advantages come with a few challenges as well.
One of the major one being taxes.

Nexus
As a company, when one of your employee is working remotely from another state, then the tax authority of that state can impose taxes on your business.
Why?
Because your remote employee can establish nexus (connection) between your business and your employee’s home state.
And this triggers tax obligations for your business.

The solution?
Keep informed — know the tax requirements.
In situations like these the rules require that the connection must be “substantial” before nexus applies.

Yes, remote work can create some tax complexity.
But, overall, it’s a win/win — for the company and its employees.

Mariana Fieraru

Mariana Fieraru, an Eastern European transplant, fell in love with her new home shortly after landing in New York. She "discovered" pizza! Years later she still loves pizza. And so do her two feathered-kids, Sunny and Flipper

Mariana worked on both, the east and the west coast.
Big or small, each project she worked on helped define the importance of gaining and sustaining a competitive edge in an increasingly complex business environment.

Business know-how, love of teaching and writing – all combined in 2006 to form OBI.
Its mission: to make learning fun! And easy.

Through its training, consulting, and publications OBI builds bridges of knowledge to take you from where you are to
where you want to go. Using a mix of serious, informal, analytical, and optimistic approach, OBI truly makes learning fun.

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