A bipartisan bill introduced in the Senate on November 5 that would simplify and standardize state income tax collection for employees who travel across state lines for temporary work assignments has received support from more than 250 organizations and business groups, including the American Institute of CPAs (AICPA).
The legislation, Mobile Workforce State Income Tax Simplification Act (S. 1645), which was introduced by US senators Sherrod Brown (D-OH) and John Thune (R-SD), would also help employers that have to file withholdings and reporting requirements. According to the two lawmakers, there are forty-one different state income tax reporting requirements, which employees and employers currently face, that vary based on length of stay, income earned, or both.
While some states require income tax filing for as little as one day of work in the state, the Mobile Workforce State Income Tax Simplification Act would establish a thirty-day threshold to help ensure that an equitable tax is paid to the state and local jurisdiction where the work is being performed.
AICPA Backs Income Tax Simplification Bill for Mobile Workforce | AccountingWEB