Telework tax traps managers should avoid
Out-of-state teleworkers could cause hidden tax worries for their employers.
Teleworkers can face some tricky tax situations if they cross state lines or international borders, according to a report by Gigaom.
Companies have been found liable for state corporate tax “when the only connection to that state was that they had an employee telecommuting in that state,” Matthew Bobman, a New York City certified public accountant tells The Wall Street Journal.
A possible solution is to “have the teleworker resign, form a C or S corporation and invoice the ex-employer for work,” says Bobman. Click here for the full story.