Compliance

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Multi-State Taxation

Employees who travel outside of their states of residence for business purposes are potentially subject to filing 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 These employees and their employers are forced to comply with a patchwork of confusing, outdated, and sometimes predatory nonresident state income tax laws.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 APA is part of the Mobile Workforce Coalition, a group that is pushing for passage of the Mobile Workforce State Income Tax Simplification Act (H.R. 1393, S. 540), a bill with bipartisan support in the House and Senate. These bills would establish a 30-day threshold before a state could impose tax on a nonresident employee’s wages. The legislation has been introduced a number of times since 2006. As part of APA’s support, it has submitted statements and urged lawmakers to vote for its passage.

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