The pandemic has revolutionized the workplaces and remote workforces will almost certainly survive the end of the pandemic. A Gallup poll last fall indicated that 61 percent of workers expect to work remotely at least part of the time in the future, and just 9 percent expect to work from home only minimally or not at all. With that in mind, employers and HR professionals must consider how to properly navigate the legal hazards stemming from our new normal. The following provides some key considerations in successfully managing a remote workforce.

Tax Issues

Remote workers can create a host of potential tax issues for employers. When an employee works outside the state or city where the employer has its normal business operations, the physical presence and activities of remote workers in another location may result in the employer becoming subject to:

• State income tax withholding and remittance requirements with respect to wages paid to employees for work performed while they were physically present in that state;
• State unemployment taxes;
• Sales and use taxes;
• Gross receipts, business privilege, business income, and/or franchise taxes; and/or
• State or local business licensing or registration requirements (which may or may not be tax-related).

Each taxing jurisdiction establishes its own rules about what activity triggers a particular type of tax, and the rules vary significantly between jurisdictions. Potential application of tax requirements must be evaluated in light...

Read Full Story: https://www.lexology.com/library/detail.aspx?g=e03d7807-ab6e-467b-b811-a2b6e9...