Pitfalls and Pathways for a Remote Workforce:
What Tax Departments Should Know
As a result of the COVID-19 pandemic, the number of employees working remotely has exploded. However, these arrangements can trigger a variety of employment and corporate income tax issues. Enforcement efforts may pick up with increased IRS funding, the expiration of COVID-19 related federal funding for state and local governments, and employers’ return-to-office efforts.
IPB's latest alert outlines some key issues for tax departments to keep in mind, including reimbursement for home office expenses, tax treatment of travel benefits fore remote workers, state income tax withholding implications, and state nexus and permanent establishment concerns.