Telecommute Taxes On The Table
17th April 2010
The “convenience of the employer” rule – the state tax doctrine that subjects interstate telecommuters to the risk of double taxation. Specifically, a state with a “convenience of the employer” rule can tax nonresidents who telecommute part-time to an employer within that state on the wages they earn at home, even though their home states can tax the same income.
For many people, the threat of owing taxes to two states can put a long-distance job out of reach. By making telework unaffordable for workers, the tax penalty also thwarts businesses and government agencies trying to tap the cost-saving and other economic benefits telework offers.