The American Institute of CPAs (AICPA) welcomed the introduction of the Mobile Workforce State Income Tax Simplification Act (S. 1645) in the U.S. Senate on November 5, 2013. The bill would simplify and standardize collection of state income taxes for employees who temporarily work across state lines.
“By establishing a 30-day threshold for tax liability, the measure – like its companion legislation in the House of Representatives – strikes a balance between interests of the states in taxing work done within their borders and the needs of businesses to be able to operate efficiently,” AICPA President and CEO Barry C. Melancon, CPA, CGMA, said. “It will ensure that the primary place of business for an employee is where that employee pays state income taxes.”
S. 1645 was introduced by Senators Sherrod Brown (D-Ohio) and John Thune (R-S.D.). Joining them in cosponsoring the measure were Senators Roy Blunt (R-Mo.), Susan Collins (R-Maine), Tim Johnson (D-S.D.), Robert Menendez (D-N.J.) and Rob Portman (R-Ohio).
The AICPA has been pushing Congress to enact a workforce mobility bill for more than five years.
“We are encouraged by the bipartisan show of support for this common-sense response to the taxation confusion experienced by mobile workers and their employers,” Melancon said about the introduction of S. 1645.
For information about the companion House bill (H.R. 1129) and the AICPA’s efforts, see the mobile workforce page on the AICPA’s website.