<snip> > > Telecommuters employed by a company outside their home state may be at = > risk of having to pay extra taxes unless Congress adopts a bill = > protecting them, experts said Tuesday.=20 > > http://news.com.com/Telecommuters+Beware+the+tax+man/2100-1028_3-5927124.html <snip>
I have the same hope -- that I'm not too far outside the scope of the list. Please note that there are two types of Telecommuting, as I understand it, in the eyes of the law. 1) You are an employee of a company that is based outside of your residence state 2) You are an employee (or sub/contractor) whose employer has a situs in the state wherein you reside (in this case, if you are the company, you qualify). In the second case because the employer has a location in the state wherein the telecommuter is, NY would recognize that the income is not being directly earned from w/in their jurisdiction. Let me give an example to make sure that this is clear as mud: The TN employee of a NY employer was in the unfortunate situation of his employer not having some kind of location w/in TN. Therefore, NY asserts that the TN resident owes NY income taxes because of being directly employed from NY! Should the TN telecommuter have been self-employed, or been employed by a NON NY employer, that telecommuter would not have been subject to NY income tax because the employer did not have a NY tax nexus (Oh this gets really convoluted and painful). Now, please understand, I am not a lawyer, I do not play one on TV, and I did not stay at a Holiday Inn Express w/in the last 30 days. But because I do consulting work, this NY tax issue caused *MANY* people heart-burn and some of us needed to know the ramifications. Some years ago MD told us that we were subject to their corp & personal income tax even if we never set foot in the state if we did business with a company "based" in their state. That was rather frightening, because this would mean that any state could tax the income of any company whether they had any presence in that state. We didn't buy it and they didn't pursue it. Had this situation in NY been applicable to both situations 1 & 2 above, every multi-state company would have been filing amicus briefs. Later, Steve Thompson ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [EMAIL PROTECTED] with the message: GET IBM-MAIN INFO Search the archives at http://bama.ua.edu/archives/ibm-main.html
