1

US companies need to know the location of their employees for tax and benefit purposes, while some US and non-US companies manage to allow some of/all their employees to work remotely. Assume that the company is based in California, United States and that one of their employees, Bob, is declared as working from California. If Bob goes outside California and keeps working for the company, from how many days outside California does it become a tax/benefit/etc. issue for the company?

I'm interested in both the case where Bob stays continuously outside for x days and the case where Bob goes back and forth California. I'm also interested in both the case where Bob goes to a different state in the United States and the case where Bob goes outside the United States. I'm not interested what the company's internal policies can be, but only regulations/laws that apply to the company.

Assume that:

  • the employee is either a US permanent resident or a US citizen;
  • the employee maintains their US federal and California tax residencies;
  • if the employee is a US permanent resident, they follow the USCIS policies to stay a US permanent resident.
  • Are you asking about issues relating to corporate tax, or issues relating to withholding of employee's income tax? – user102008 Aug 19 at 17:21
  • @user102008 Thanks, I'm interested in both. I am trying to understand the upper bound of the length of a stay outside CA that doesn't cause any tax issue to the employer. – Franck Dernoncourt Aug 19 at 17:22
1

This article lists that 13 states allow businesses to continue to withhold tax in the state where the employer is located, but it is unclear for other states.

It also lists 13 states where the an employee working remotely in another state does not create nexus and apportionment for the company's tax purposes.

| improve this answer | |

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.