McNees Minute: Remote work taxing policies

Sponsored Content: McNees Minute

Adam Koelsch, Esq.
akoelsch@mcneeslaw.com – 717-237-5305
It’s an understatement to say the pandemic has changed the way many businesses operate.  Stay-at-home orders forced many service industry employees to work from their residences, often in cities or even states different from where their employer’s offices are located.  Employers should be aware that changes in work location may have significant state and local tax ramifications.  For example, an employer may be required to register and withhold income taxes from their employees at the new locations.  Employers may even be considered doing business there, potentially subjecting them to additional business taxes.  Some state and local governments have announced policies stating that they will ignore pandemic-related changes in employee work locations for tax purposes.  But those policies are temporary and are often pegged to the expiration of government-declared emergency orders.  Employers who have implemented a remote work policy or are considering doing so should carefully evaluate the potential tax consequences and, if necessary, consult a knowledgeable accountant or attorney.

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