Comments on: A Taxing Time for Telecommuters http://www.realtechnews.com/posts/2061 Independent Tech News and Product Reviews from former VP and head of CNET.com and Longtime Computer Shopper Columnist, Alice Hill author of the popular "Hard Edge" column. Originally named AliceandBill.com. Wed, 03 Dec 2008 23:52:07 +0000 http://wordpress.org/?v=2.0.4 by: ed3 http://www.realtechnews.com/posts/2061#comment-4472 Thu, 03 Nov 2005 20:26:56 +0000 http://www.realtechnews.com/posts/2061#comment-4472 Actually, the way around it is to have a regional office in the state the worker(s) is/are in. The worker can then be "based" from the regional office and only the tax rules of the state the office is located would apply to the workers. Heck, designate the worker's home as a regional office! I ran into a similar situation. I live in TN (no state income tax, yet) and worked for a telecommunications provider which was headquartered in Chicago, IL. Naturally I did not pay IL state income tax on my regular paycheck since I worked at the local regional office. However, one year they paid us bonuses in stock. I was told I either had to pay $XX or sell the equivalent amount of stock to pay IL state income tax. The way it was explained to me, since the stock was purchased in the state of IL and awarded to me via IL, I owed IL state income tax. I ended up having to sell half my stock to cover the tax. In hindsight I wish I would have contested it. I'm sure they could have purchased the stock through a local broker or somesuch. Actually, the way around it is to have a regional office in the state the worker(s) is/are in. The worker can then be “based” from the regional office and only the tax rules of the state the office is located would apply to the workers. Heck, designate the worker’s home as a regional office!

I ran into a similar situation. I live in TN (no state income tax, yet) and worked for a telecommunications provider which was headquartered in Chicago, IL. Naturally I did not pay IL state income tax on my regular paycheck since I worked at the local regional office.

However, one year they paid us bonuses in stock. I was told I either had to pay $XX or sell the equivalent amount of stock to pay IL state income tax. The way it was explained to me, since the stock was purchased in the state of IL and awarded to me via IL, I owed IL state income tax. I ended up having to sell half my stock to cover the tax. In hindsight I wish I would have contested it. I’m sure they could have purchased the stock through a local broker or somesuch.

]]> by: Stephen http://www.realtechnews.com/posts/2061#comment-4468 Thu, 03 Nov 2005 16:47:41 +0000 http://www.realtechnews.com/posts/2061#comment-4468 Telecommuters don't really face double taxation. What would happen is that if you pay NY state taxes, then you would probably be able to credit them against your state of residence income tax. The way to get around this provision in the NY state tax alw is to make sure that the telecommuting aspect of your job is written into your contrat or job description as a requirement. That way it would not be for YOUR convenience. Telecommuters don’t really face double taxation. What would happen is that if you pay NY state taxes, then you would probably be able to credit them against your state of residence income tax.

The way to get around this provision in the NY state tax alw is to make sure that the telecommuting aspect of your job is written into your contrat or job description as a requirement. That way it would not be for YOUR convenience.

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