Remote Work Increases Complexity of Compliance

Employers should be aware of compliance issues beyond income tax when dealing with US domestic remote workers, a payroll practitioner said May 19.

Becky Harshberger, CPP, vice president and practice lead for payroll tax at Entertainment Partners, reminded employers to always be aware of where their employers are working. “Nothing is cut and dry, but do you really know if they’re physically working in their house?” she asked.

For income tax, research should start with states’ definitions of residents and nonresidents, Harshberger said. “If you’re newer to payroll, that’s how you start the research,” she said.

For nonresidents, the work ...