Throughout the pandemic, the American Institute of CPAs (AICPA) has actively advocated for legislation to (a) provide taxpayers relief from inconsistent state and local income tax and withholding rules impacting employees and employers, and (b) create a uniform national standard to simplify and enhance compliance with various state and local tax laws, thereby reducing these burdens.
During votes last week on amendments to S. Con Res 5, the Fiscal Year (FY) 2021 budget resolution in the U.S. Senate, an amendment, introduced by Senator John Thune (R-SD) and supported by Senator Sherrod Brown (D-OH), reflected bipartisan legislation that would provide state tax filing relief to American employees and businesses during the pandemic.
“The AICPA recognizes the importance of mobile workforce legislation and we applaud the work by Senators Thune and Brown to advance this bipartisan amendment to the FY2021 Budget Resolution,” said AICPA Vice President of Taxation, Edward Karl, CPA, CGMA. “Legislation on mobile workforce will help simplify processes for employers, employees, and state and federal governments, and the AICPA strongly supports this effort.”
The recent pandemic has created an influx of remote workers, many of which travel and work outside their resident state, triggering state tax liabilities in multiple states. This creates an administrative burden for employees and their employers.
Mobile workforce legislation has previously passed the U.S. House of Representatives; however, this is the first time the U.S. Senate has taken a unanimous, positive vote on the topic of mobile workforce taxation. The AICPA looks forward to the introduction of bipartisan legislation in the 117th Congress.
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