The Mobile Workforce State Income Tax Simplification Act

The Mobile Workforce State Income Tax Simplification Act provides for a uniform, fair, and easily administered law and helps to ensure that the correct amount of tax is withheld and paid to the states without the undue burden that the current system places on employees and employers. The Act provides a uniform 30-day threshold before the liability attaches and withholding is required. 

After 30 days, existing state laws will apply. Consistent with current law, the Act provides that an employee’s earnings are subject to full tax in his or her state of residence. Further, an employee’s earnings would be subject to income tax in the state(s) in which the employee is present and performing duties for more than 30 days during the calendar year. 

Nonresident employees who visit a state and perform employment duties for more than 30 days during a calendar year are subject to tax—and employers are required to withhold taxes—in the nonresident state from the commencement of the duties performed by the employee in the nonresident state. 

As under current law, nonresident employees who visit a state for longer than 30 days (and are therefore subject to that state’s nonresident filing and withholding rules) will still be able to take a credit against their resident state personal income tax liability for amounts paid to other states. 

This legislation does not cover certain uncommon types of employees, such as professional entertainers, professional athletes, qualified production employees, and certain public figures. They remain subject to each state’s laws. 

 

Bill Text

H.R. 1393 | S. 540
(identical language)

Previous Compromises

We've made every effort to incorporate feedback and address concerns in the Mobile Workforce State Income Tax Simplification Act.
Read about our compromises here.

Additional Information

Download information on precedents to Congressional action on this issue, in addition to past examples of support from state-level organizations.