Washington, D.C. (March 8, 2017) – The American Institute of CPAs (AICPA) endorsed the Mobile Workforce State Income Tax Simplification Act of 2017 introduced yesterday in the U.S. House of Representatives and U.S. Senate. The companion bills, H.R. 1393 and S. 540, were introduced by Representatives Mike Bishop (R-Mich.) and Hank Johnson (D-Ga.) and Senators John Thune (R-S.D.) and Sherrod Brown (D-Ohio). H.R. 1393 was introduced with 22 original co-sponsors and S. 540 had 18 original co-sponsors.
“The AICPA strongly supports the Mobile Workforce State Income Tax Simplification Act of 2017,” said Barry C. Melancon, CPA, CGMA, president and CEO of the AICPA. “This legislation strikes an equitable balance, and we urge Congress to take swift action so the bill can become law and relieve the burden imposed on countless U.S. employers and employees by inconsistent state tax laws.”
The Mobile Workforce State Income Tax Simplification Act of 2017 would simplify the complex tax reporting rules employers and employees face as a result of numerous state income tax withholding laws and varying de minimis exemption periods when employees work outside their home states. The legislation would create a uniform national standard and would significantly simplify compliance with all the different state laws. The earnings of employees would not be subject to state income tax and withholding outside their home state unless the employee works in a state for more than 30 days during the calendar year.
“The AICPA appreciates the leadership of Representatives Bishop and Johnson and Senators Thune and Brown in championing the Mobile Workforce State Income Tax Simplification Act of 2017,” Melancon stated. “The large number of original co-sponsors on both bills is an indication of the broad, bi-partisan support for this legislation and a reflection of the momentum that built up on this issue in the last Congress that culminated in the House’s passage of similar legislation.”