We live and work in an interconnected, mobile economy. The modern workforce isn’t stationary—many people travel all over the country to do their jobs. Right now, employees who travel outside of their states of residence for business purposes are subject to onerous administrative burdens because, in addition to filing federal and resident state income tax returns, they may also be legally required to file an income tax return in every other state into which they traveled, even if they were there for only one day. These employees and their employers are forced to comply with a patchwork of confusing, outdated, and sometimes predatory nonresident state income tax laws.
The Mobile Workforce State Income Tax Simplification Act, a bill with bipartisan support in the House and Senate, would create a simple, streamlined system that makes it easier for employers and employees to comply with and pay nonresident state income taxes when they travel for work. We invite you to learn how the Mobile Workforce Coalition, in partnership with our Congressional cosponsors, proposes to fix the current system.
States currently have inconsistent, varying standards and requirements for employees to file personal income tax returns when traveling to a nonresident state for temporary work periods, and for employers to withhold income tax on employees who travel outside of their state of residence for temporary work periods.
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.
There are many ways you can get involved with the Mobile Workforce Coalition. We have several sponsorship opportunities, ready-made lobby materials to help you when visiting with your Representative or Senator, easily sharable social media graphics, and contact information to send your Representative or Senator a message, tweet, or phone call.