Taxing Remote Workers

What’s happening? Ohio is considering HB 157 (2021 | OH) which would prepaid a tax credit for local taxes imposed by the city in which a worker works but does not live. This largely applies to income taxes in OH. But this also applies when a worker lives in one state and works in another.

Why is this important? In the northeast there is a brewing lawsuit when Massachusetts passed a “convenience of the employer” rules, meaning they impose taxes on employees based solely on the employer’s location. New Hampshire, which has no income tax called it a tax grab for their residents incomes. 14 states are involved in the litigation.

How will this be important? The taxation impact of COVID isn’t dwindling this year or next.

Route Fifty | Ohio Lawmakers Approve Bill to Allow Teleworkers to Seek Commuter Tax Refunds