Article by Jennifer Karpchuk on “As Nexus Waivers Wane, Know the Tax Implications of Remote Workers”
In an article published on July 9, 2021, in CPA Now, Philadelphia-based Shareholder Jennifer Karpchuk discusses the importance of understanding the tax implications of remote workers as the nexus waivers wane.
“During the pandemic, states took varying approaches to nexus: some waived general nexus provisions, others overtly stated that they were not changing their positions on nexus, while others remained silent,” explains Karpchuk. “Of the states that issued nexus waivers in light of COVID-19, those waivers were never intended to be indefinite.”
Karpchuk further explains that many of these waivers will soon or have already come to an end. For example, in Pennsylvania the nexus waiver was in effect until June 30, 2021, or 90 days after the Proclamation of Disaster Emergency in Pennsylvania was lifted, whichever came first. With the June 30 date passed, remote workers in Pennsylvania have triggered nexus for tax purposes in Pennsylvania.
“The state and local tax considerations of a remote workforce can be vast, extending to sales and use taxes, corporate income taxes, gross receipts taxes, franchise taxes, withholding taxes, and even some credits,” says Karpchuk.
Karpchuk writes that there are many state and local tax angles to consider when continuing with a remote workforce and that as nexus waivers start to disappear, taxpayers must carefully evaluate all potential implications of a continued remote workforce and ensure the appropriate compliance.
To read the full article, you may click here.