This session discusses the nexus, state income tax withholding, SUTA, and related issues raised by working from home across state lines during COVID-19.
There are significant compliance issues for employers when employees cross state lines in the course of employment. Frequently, multi-state employment issues arise when the employer has business locations in more than one state. However, issues also arise when individual employees perform services in more than one state, live in one state, and work in another, move from one state to another, or telecommute across state lines. Compliance issues directly related to payroll include identification of the states for which the business is liable for the collection and payment of income tax, and compliance with the rules for each state regarding tax collection, payment, and reporting. In addition, special rules are used to establish a state that is to receive the unemployment tax for a particular employee. A very significant non-payroll issue is whether the employment creates nexus, i.e. a business presence, within a particular state and whether the employer is subject to that state’s income, franchise, sales, and use, or other state business taxes imposed by the state and the related apportionment issues.
Understand nexus and how employment within a state may create nexus for an employer.
Understand the payroll tax and compliance implications of conducting business within a state.
Determine which state(s) to withhold for when employees work in multiple states under the general rule.
Determine which state(s) to withhold for when states that have reciprocal agreements or no state income tax are involved.
Know when a state or local withholding certificates or certificates of non-residency are required.
Determine which state is the State Unemployment Tax state when an employee works in more than one state.
Understand that state rules differ with regard to taxable income, withholding thresholds, wage reporting, and fringe benefits.
Learn how to avoid failure to withhold penalties.
5 to 10 minutes will be allotted for answering questions at the end. The presenter is willing to accept e-mail questions after the webinar is over for questions that are not answered during the webinar.
Why You Should Attend:
The creation of nexus in a new state or local tax jurisdiction creates tax and compliance issues for a business such as liability of business income, franchise, property, sale taxes, employment taxes, and apportionment, and reporting compliance issues. Employers can inadvertently create nexus when employees work within a taxing jurisdiction. Failure to properly withhold or pay taxes to the appropriate jurisdiction can lead to fines and penalties as well as employer liability and possible personal liability of employer officers and managers for under-withheld employee taxes. Correcting errors after the fact can be an expensive and time-consuming process. Employers must exercise due diligence in obtaining and documenting the information used to compute employee withholding in order to avoid penalties for withholding or reporting errors or missing information. This webinar will provide you with information on required documentation and ways to avoid problems and penalties.
Who Should Attend:
Payroll Supervisors and Personnel
Payroll Service Providers
Tax Compliance Officers
Employee Benefits Administrators
Officers and Managers with Payroll or Tax Compliance Oversight
Company / Business Owners
Public Agency Managers
Audit and Compliance Personnel / Risk Managers
Advanced Preparation: None
Program Level: Intermediate
Prerequisites: Basic knowledge of Taxation
Field of Study: Taxes, Accounting, Nexus
*You may ask your Question directly to our expert during the Q&A session.
** You can buy On-Demand and view it at your convenience.
Patrick Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988. He is licensed as an Enrolled Agent by the U. S. Treasury to represent taxpayers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including Payroll tax issues, FLSA compliance, information returns, and accounting.
This webinar has been approved for 1.5 HR (General) recertification credit hours toward California, GPHR, HRBP, HRMP, PHR, and SPHR recertification through the HR Certification Institute. The use of this seal is not an endorsement by the HR Certification Institute of the quality of the activity. It means that this activity has met the HR Certification Institute’s criteria to be pre-approved for recertification credit.
Edupliance is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This program is valid for 1.5 PDC for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit www.shrmcertification.org.
Edupliance is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.
Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
For more information regarding administrative policies such as complaint and refund, please contact our offices at 844- 810-1151.
PLEA SE NOTE:To receive credit through the NASBA for this program you MUST attend the Live program in its entirety and complete the required progress checks.
Number of CPE Credits Awarded for This Course: 1.5 (Accounting - 0.5, Taxation- 0.5, Nexus- 0.5)
Delivery Method: Group Internet Based