New Jersey enacted Assembly Bill No. 4694 on July 21, 2023, adding a "convenience of the employer" rule in an effort to gain tax revenues from nonresidents assigned to a primary work location in New Jersey who work outside the state for their own convenience. The law became effective immediately and the convenience of employer rule applies for calendar year 2023.
Though states tax residents on their global earnings, they also typically provide their residents with a tax credit for taxes that were required to be paid to another state. States generally only tax nonresidents on income sourced to their state. Thus, resident states typically lose personal income tax revenues when a resident's income is sourced to another state.
Generally, the location where services are performed is the driving factor in sourcing an employee's wages to a state. However, one exception to the general rule is with respect to states that have convenience of the employer rules. A convenience of the employer rule states that wages paid to an employee are sourced to the employee's assigned work state (e.g., where the company is headquartered or maintains a brick and mortar facility) unless the work performed...
After years of relentless advocacy and sustained public pressure by residents of St. Catharines, the City has issued a sweeping Property Standards Order to the owners of the former General Motors ...