H.R. 2315 is a bipartisan measure, strongly supported by the accounting profession, which provides a clear, uniform framework for when states may tax nonresident employees who travel to the taxing state to perform work. In particular, the bill prevents states from imposing income tax compliance burdens on nonresidents who work in the state for fewer than 30 days in a year. The uniform standard would substantially simplify state income tax reporting for employers and employees.
The visits CPAs made to their members of Congress last month, following the AICPA Spring Meeting of Council, helped build support for the bill’s approval and resulted in a significant increase in the number of co-sponsors ( see related story ). To date, there are 52 co-sponsors on H.R. 2315, which is the highest number of co-sponsors mobile workforce legislation has had in any Congress.
Committee Chairman Bob Goodlatte (R-Va.) applauded the Committee’s passage of the legislation and the leadership of Judiciary Committee members Rep. Mike Bishop (R-Mich.) and Rep. Hank Johnson (D-Ga.), who introduced H.R. 2315. Chairman Goodlatte said, “The Committee’s approval of the Mobile Workforce State Income Tax Simplification Act of 2015 is a significant victory for small and family businesses who are subjected to significant regulatory burdens just because they send employees across state lines to get a job done. The regulatory compliance costs divert the resources of these small businesses away from growth and the higher costs are ultimately passed on to consumers. To demonstrate the legal morass these rules create, one manufacturer testified before the Judiciary Committee this year that it had to issue 50 W-2’s for a single employee in a single year.”
In a written statement for the June 2 record of a House Judiciary subcommittee hearing on H.R. 2315, the American Institute of CPAs (AICPA) urged the subcommittee to approve H.R. 2315. The testimony stated, “The AICPA strongly supports H.R. 2315. We believe the bill provides relief, which is long-overdue, from the current web of inconsistent state income tax and withholding rules that impact employers and employees. We believe Congressmen Bishop and Johnson have reached a good balance between the states’ right to tax income from work performed within their borders, and the needs of individuals and businesses, and especially small businesses, to operate efficiently in this economic climate.”
The Mobile Workforce Coalition, the stakeholder group of which the AICPA is a leader, is pressing Chairman Goodlatte to schedule the bill for consideration by the House of Representatives as soon as possible. Sens. John Thune (R-S.D.) and Sherrod Brown (D-Ohio), the sponsors of similar legislation in the Senate, are watching the progress of the legislation in the House and continue to strategize for their bill's movement in the Senate.