Employee telework has tax ramifications

With many employees no longer working at the business’s physical office locations, businesses need to evaluate their evolving footprint and the operational, legal, and tax implications a hybrid workplace presents.

Employees working across state lines can now expand a business’ pre-pandemic boundaries, for example. In these cases, businesses should consider whether the presence of employees trigger physical presence nexus in new jurisdictions, which can potentially create a host of costly new tax compliance obligations and liabilities.