Taxes amd Telecommuting: A Costly Combination?
Wednesday November 2, 2005
It may turn out to be very costly for those telecommuters who are employees of companies that are situated in New York State. As reported by C|Net News.com the U.S. Supreme Court will not hear the appeal of Tennessee resident Thomas Huckaby.
While there are other States with similar legislation to New York, it is only New York that has been vigilant about collecting taxes from out-of-state telecommuters. My concern though. is that perhaps other States will now become more interested in collecting taxes from telecommuters who reside in another State.
By no means is this a completely losing battle on the side of telecommuters. Senators Chris Dodd (D-CT) and Joe Lieberman (D-CT) , and Representatives Chris Shays (R-CT), Tom Davis (R-VA) and Rosa DeLauro (D-CT) have worked to introduce legislation which would correct this type of legislation. The proposed Act is The Telecommuter Tax Fairness Act of 2005. Senate Bill: S. 1097, House Bill: H.R. 2558.
To show your support or to read press releases associated with this proposed legislation you can visit The Telework Coalition and learn how to get your voice heard in support of this.
It is important to note that at this time, the tax legislation in New York State does only apply to employees of a company not independent contractors, whether that could change is anyone's guess at this point. I am hopeful that The Telecommuter Tax Fairness Act will be passed and then this will one less hurdle to face by telecommuters and their respective employers.
While there are other States with similar legislation to New York, it is only New York that has been vigilant about collecting taxes from out-of-state telecommuters. My concern though. is that perhaps other States will now become more interested in collecting taxes from telecommuters who reside in another State.
By no means is this a completely losing battle on the side of telecommuters. Senators Chris Dodd (D-CT) and Joe Lieberman (D-CT) , and Representatives Chris Shays (R-CT), Tom Davis (R-VA) and Rosa DeLauro (D-CT) have worked to introduce legislation which would correct this type of legislation. The proposed Act is The Telecommuter Tax Fairness Act of 2005. Senate Bill: S. 1097, House Bill: H.R. 2558.
To show your support or to read press releases associated with this proposed legislation you can visit The Telework Coalition and learn how to get your voice heard in support of this.
It is important to note that at this time, the tax legislation in New York State does only apply to employees of a company not independent contractors, whether that could change is anyone's guess at this point. I am hopeful that The Telecommuter Tax Fairness Act will be passed and then this will one less hurdle to face by telecommuters and their respective employers.
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