Next up today, remote work.
Growing concerns about the tax liabilities from work-from-home. Tax laws aren’t built for telecommuting. As a general rule, income taxes are owed where you work… not where you live. With workplaces disrupted, tax bases are moving around. An example – New Hampshire is suing Massachusetts over asking workers to pay income taxes on work completed outside of the state. Why? Because New Hampshire has no income tax. Massachusetts says work that WOULD have been done in their state is taxable. This fight isn’t just there – New York and New Jersey will have issues too, among others.
But how about this – the hybrid work week is going to stay. Slack asked workers about the model. 63% like the hybrid working model, 20% want to work from home full time, and just 12% want to go back to the office. The numbers are even better among younger people.
Why do we care?
With this fight, changes to work will be codified. Once codified, they are not going back. There is money to be made soon in consulting around the changes to come, as IT systems will change and be needed. That may be just as simple as the payroll providers adapting… but that’s a threat too. Many of those providers are offering iT services now.
Ignoring that change will come with peril. Layer in the fact that employees like this… and those younger employees like it a A LOT.