Major McGraw’s Post

As remote work becomes more common, employees are no longer confined to one state. But with this freedom comes the challenge of navigating different tax rules for out-of-state workers. Here's what to know about managing your remote team and streamlining payroll with the help of software and consultants.

Hey everyone! 👋 As small business owners, one of the biggest shifts we've seen recently is the move to remote work. It's been a game-changer in many ways, but it also brings some unique challenges, especially when it comes to taxes. Let's dive into it! 📊 Increased Deductions Remote work means more home offices. 🏠 This opens up opportunities for home office deductions, which can be a lifesaver. Make sure to document your expenses thoroughly to maximize these deductions. Multi-State Taxation If your team is spread across different states, things can get tricky. Each state has its own tax rules, and you might end up dealing with multi-state tax obligations. 🗺️ It's crucial to stay informed and perhaps even consult with a tax professional to navigate these waters. Employee Reimbursements With remote work, you might be reimbursing employees for home office expenses like internet, equipment, and more. 💻 These reimbursements can be deductible for the business, so keep track of them! Payroll Adjustments Don't forget about payroll taxes. If your employees have moved to different states, you need to adjust your payroll systems to comply with state-specific tax requirements. This is an area where getting it right is essential to avoid penalties. Personal Experience From our own experience at Square Accounting, embracing remote work has been a double-edged sword. While the flexibility is fantastic, the tax complexities can be overwhelming. Last year, we had to hire a tax advisor to ensure we were compliant across several states, and it was worth every penny. 💰 Conclusion Remote work is here to stay, and with it comes a new set of tax considerations. Stay proactive, keep excellent records, and don't hesitate to seek professional help when needed. What tax challenges or opportunities have you faced with remote work? Drop your thoughts in the comments! 👇 #smallbusiness #remotework #taxtips #homeoffice #businessgrowth #square #entrepreneurlife

Do you have remote employees? If so, do you know what tax implications work into the mix from remote work? In some cases, remote employees are working from homes that are in a different state than the one in which their employers are located. This is especially true in smaller states and in large metropolitan areas located near state lines, like Kansas City. If your company is growing and expanding into other states, or if you have employees who live across state lines, several considerations can help you anticipate and manage the state and local tax (SALT) implications. Read this post from my colleagues Susan Day and Jason Higgins for more information on your tax implications. #remotework #tax #smallbusiness

|| Cross-border and remote workers tax changes || The way people work has transformed due to the Covid-19 pandemic, leading to an increase in remote work, including cross-border arrangements. This shift benefits employers by expanding the talent pool and employees by offering a better work-life balance, eliminating long commutes, and providing more flexibility. However, it’s crucial to be aware that working across borders can result in tax responsibilities for both employers and employees. These obligations may be unclear at the start of the arrangement and correcting them can be costly. The rules governing cross-border work taxation have been updated and come into force from 1 April 2023. Find out more here: https://bit.ly/4911AZi

In the wake of the pandemic, remote work has skyrocketed, reshaping the landscape of business operations. As a payroll service provider co-founder, I've witnessed this transformation firsthand. With 35% of US workers now opting for full-time remote work and 41% embracing hybrid models, it's clear that the way we work has changed for good. Are you ready to join the remote work revolution? Craft a policy that aligns with your business needs and empowers your team for success. Let's embrace flexibility, innovation, and a brighter future together! #RemoteWork #FutureOfWork #BusinessTransformation #WorkplaceFlexibility #EmployeeEmpowerment #HybridWork #BusinessInnovation #WorkLifeBalance #PayrollVault #PayrollVaultFranchise

In the wake of the pandemic, remote work has skyrocketed, reshaping the landscape of business operations. As a payroll service provider co-founder, I've witnessed this transformation firsthand. With 35% of US workers now opting for full-time remote work and 41% embracing hybrid models, it's clear that the way we work has changed for good. Are you ready to join the remote work revolution? Craft a policy that aligns with your business needs and empowers your team for success. Let's embrace flexibility, innovation, and a brighter future together! #RemoteWork #FutureOfWork #BusinessTransformation #WorkplaceFlexibility #EmployeeEmpowerment #HybridWork #BusinessInnovation #WorkLifeBalance #PayrollVault #PayrollVaultFranchise

As remote work becomes more ubiquitous, tax law and other regulations will have to adapt. Here's an example of how some states produce a "double taxation" problem for remote workers.🔍 🏠 Remote Work's Tax Implications: With the surge in remote work since COVID-19, employees face new tax challenges. The location of both the worker and the employer can dictate tax liabilities, potentially leading to complex multi-state tax situations. 💼 Dual Taxation Risk: In most cases, working across state lines won't lead to double taxation due to credit systems. However, in states with 'convenience of the employer' rules, like New York, Connecticut, Delaware, Nebraska, and Pennsylvania, remote workers might face taxes in both their state of residence and their employer’s state. 📊 Understanding 'Convenience of the Employer' Rules: These rules allow certain states to tax non-resident employees of in-state companies. This can lead to scenarios where remote workers owe income tax to a state they don’t physically work in. 🔄 Reciprocity Agreements and Credits: Some states have agreements that simplify tax obligations based on residency, not work location. These reciprocity agreements, along with tax credits, help prevent double taxation. For example, a Maryland resident working remotely for a Pennsylvania company only needs to file taxes in Maryland, thanks to a reciprocity agreement. However, without such agreements, workers might need to file tax returns in both states but can often claim a tax credit to avoid double taxation. 🔑 Takeaway: Taxes can get complicated, but we need to understand the commitments in the short-run, and serve as a force for good to influence reforms that promote innovation and well-being longer run; employers should pay attention to these reciprocal agreements! #RemoteWork #TaxSeason2024 #StateIncomeTax #Telecommuting https://lnkd.in/eT3iZEap

Remote – or “virtual” – work has become ubiquitous since the pandemic sent millions of people home to work from dining room tables, couches and home offices. In some cases, employees are working from homes that are in a different state than the one in which their employers are located. This is especially true in smaller states and in large metropolitan areas located near state lines, like Kansas City. If your company is growing and expanding into other states, or if you have employees who live across state lines, several considerations can help you anticipate and manage the state and local tax (SALT) implications. Read this post from Susan Day and Jason Higgins for more information. #SALT #CPA #Tax #Accounting

Remote Work Taxes: Tax Implications for Out-of-State Employees Table of Contents: -Types of Remote Workers -How Are Remote Workers Taxed? -Payroll Taxes for Out-of-State Employees -Remote Work Tax Implications Employers Should Know -Reduce Tax Mistakes With Help From Paychex -Remote Worker Taxes FAQ

South Africa is undergoing significant changes in its approach to taxing remote workers and their employers, according to recent proposals by the National Treasury and the South African Revenue Services (SARS). Here's a summary of the key points: Removal of Distinction Between Remote and Non-Remote Workers: One major proposed change is to remove the current distinction between remote and non-remote workers. This means that employers of South Africa-based remote workers would be required to deduct pay-as-you-earn (PAYE) tax directly from their employees' salaries. Mandatory Registration for Foreign Employers: For foreign employers, the proposals include mandatory steps to comply with South African tax laws. These steps include registering for PAYE, UIF (Unemployment Insurance Fund), and SDL (Skills Development Levies), establishing a branch within South Africa, and obtaining a SARS income tax number. These requirements aim to ensure that foreign employers contribute to UIF and SDL at the standard rate of 1% of an employee’s remuneration. Residence-Based Tax System: South Africa employs a residence-based tax system, requiring all residents to pay tax on their global income, regardless of where it was earned. This system includes several tests to determine tax residency, such as the "physical presence" test and considerations for the source of income. For example, employment income from a company abroad is exempt from tax for the first R1.25 million if the individual spends a minimum number of days outside the country within a tax year. Contact me for details. Concerns Over New Regulations: The proposed regulations could potentially discourage foreign employers from hiring South African talent due to the added tax compliance complexities. This might adversely impact South Africa's attractiveness as a remote work destination and could lead to a reevaluation of employment contracts with South African workers. Public Commentary and Implementation: The proposed amendments were open for public commentary, with a deadline for submissions. The final bill, after considering public input, will be tabled in parliament for enactment. It's crucial for both remote workers and their employers, especially those based outside South Africa, to stay informed about these developments and prepare for compliance. These changes underscore a significant shift in how remote work is taxed in South Africa, with implications for both local remote workers and international companies employing South African talent. As these proposals are subject to legislative processes, those affected should monitor developments closely and consider consulting with tax professionals to navigate the new requirements effectively. _______________________________ Need assistance navigating the complexities of tax changes in South Africa? We have CA's that are also CFPs on the Virtual Adviser platform, ready and willing to help. info@virtualadviser.net