Mobile Workforce State Income Tax Simplification Act of 2020

2/8/2022, 11:17 PM

Mobile Workforce State Income Tax Simplification Act of 2020

This bill prohibits the wages or other remuneration earned by an employee who performs employment duties in more than one state from being subject to income tax in any state other than (1) the state of the employee's residence, and (2) the state within which the employee is present and performing employment duties for more than 30 days during the calendar year.

The bill exempts employers from state income tax withholding and information reporting requirements for employees not subject to income tax in the state under this bill. For the purposes of determining penalties related to an employer's state income tax withholding or reporting requirements, an employer may rely on an employee's annual determination of the time expected to be spent working in a state in the absence of fraud or collusion by such employee.

For the purposes of this bill, the term "employee" excludes professional athletes, professional entertainers; production employees who perform services in connection with certain film, television, or other commercial video productions, and public figures who are persons of prominence who perform services for wages or other remuneration on a per-event basis.

Congress
116

Number
HR - 5674

Introduced on
2020-01-24

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

1/24/2020

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Mobile Workforce State Income Tax Simplification Act of 2020

This bill prohibits the wages or other remuneration earned by an employee who performs employment duties in more than one state from being subject to income tax in any state other than (1) the state of the employee's residence, and (2) the state within which the employee is present and performing employment duties for more than 30 days during the calendar year.

The bill exempts employers from state income tax withholding and information reporting requirements for employees not subject to income tax in the state under this bill. For the purposes of determining penalties related to an employer's state income tax withholding or reporting requirements, an employer may rely on an employee's annual determination of the time expected to be spent working in a state in the absence of fraud or collusion by such employee.

For the purposes of this bill, the term "employee" excludes professional athletes, professional entertainers; production employees who perform services in connection with certain film, television, or other commercial video productions, and public figures who are persons of prominence who perform services for wages or other remuneration on a per-event basis.

Alternative Names
Official Title as IntroducedTo limit the authority of States to tax certain income of employees for employment duties performed in other States.

Policy Areas
Taxation

Potential Impact
Income tax exclusion
Intergovernmental relations
State and local taxation
Tax administration and collection, taxpayers
Wages and earnings

Comments

Recent Activity

Latest Summary2/14/2020

Mobile Workforce State Income Tax Simplification Act of 2020

This bill prohibits the wages or other remuneration earned by an employee who performs employment duties in more than one state from being subject to income tax ...


Latest Action2/7/2020
Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.