Podcast with Jennifer Karpchuk on “Tax Implications of a Remote Workforce”
In a podcast episode that aired on September 16, 2021 on Tax Warrior Perspectives, Philadelphia-based Shareholder Jennifer Karpchuk discusses how businesses with a remote workforce are trying to navigate the complex world of state and local taxes (SALT).
The podcast highlights that SALT experts became front and center as companies struggled to become compliant. Karpchuk explains how these nuanced tax laws impact employers and employees and outlines some of the SALT impacts and considerations of a remote workforce.
“At a macro level the trend we see right now is that human resources are guiding what companies are doing,” explains Karpchuk. “A lot of times they aren’t consulting with their tax consultants or outside tax counsel or advisers. It makes sense in a way because companies are really trying to be flexible and trying to accommodate their employees who are working remotely or who have been working remotely for 16, 17 months in a lot of cases. So, the trend is to continue to allow for some amount of flexibility the problem with the remote or semi-remote workforce is that they are creating that all-powerful nexus or connection with the state. Once they do that there are tax implications that companies need to be aware of. Whether that is for income tax purposes and with that the potential loss of Public Law 86272 protection or sales tax purposes, gross receipts tax purposes, local business tax purposes which a lot of companies forget about and then you have your employment taxes. So, there is just a whole host of issues that come up when you employees even when you have remote employees in a state or locality. And again a lot times what we are seeing right now is that companies are forgetting about that.”
Click here to listen to this podcast episode.