AICPA Urges House to Swiftly Pass Mobile Workforce Bill
H.R. 1864 Streamlines Compliance Requirements for Individuals Who Work in Multiple States
Published May 14, 2012
Washington (May 14, 2012) – The following is a statement by Barry C. Melancon, CPA, CGMA, president and CEO of the American Institute of CPAs, urging the U.S. House of Representatives to pass legislation this week that would establish a uniform national standard governing the withholding of state income taxes for non-resident employees.
“The AICPA urges all members of the U.S. House of Representatives to vote for H.R. 1864, the Mobile Workforce State Income Tax Simplification Act of 2011, which is scheduled to be voted upon on Tuesday. The measure would streamline tax withholding compliance requirements for employers and for their employees who work in multiple states.
“We currently have numerous state income tax withholding laws and varying de minimis exemption periods that make compliance extremely difficult and time consuming.
“This bill would enhance compliance by instituting a uniform rule for employees who work for more than 30 days in any one state outside their resident state. The change would make state income tax withholding easier to administer and would help ensure that states and local jurisdictions get the taxes they are owed.
“The AICPA has strongly supported enactment of this bill, and we want to thank Representative Howard Coble, a Republican from North Carolina and Representative Hank Johnson, a Democrat from Georgia, for their bipartisan leadership in moving the bill forward.”
The AICPA signed an April 24 coalition letter to House Speaker John Boehner and Minority Leader Nancy Pelosi to request that H.R. 1864 be considered by the House, citing the strong bipartisan support for the bill. The coalition represents more than 495 businesses and organizations that support the bill.
The AICPA testified in favor of the bill at a May 25, 2011 hearing by a subcommittee of the House Judiciary Committee and in November wrote members of the House Judiciary Committee encouraging them to approve the bill so it could be considered by the full House.