The American Institute of CPAs (AICPA) is a charter member of the Mobile Workforce Coalition, a 280-member group seeking to protect America's traveling workforce by simplifying nonresident state income tax rules. The AICPA also co-chairs the Coalition’s advocacy arm.
States currently have inconsistent, varying standards and requirements for employees to file personal income tax returns when traveling to a nonresident state for temporary work periods, and for employers to withhold income tax on employees who travel outside of their state of residence for temporary work periods.
The Mobile Workforce Coalition’s goal is passage of the Mobile Workforce State Income Tax Simplification Act (H.R. 2315 and S. 386). The legislation provides for a uniform, fair, and easily administered law and helps to ensure that the correct amount of tax is withheld and paid to the states without the undue burden that the current system places on employees and employers. It provides a uniform 30-day threshold before the liability attaches and withholding is required. At the moment, a bipartisan group of 145 cosponsors in the House (134) and Senate (11) support the Coalition’s solution.
AICPA Director of Congressional & Political Affairs Brady King explained that the Coalition is actively strategizing with House and Senate staff on ways to advance the legislation. “State CPA societies – 21 of which are Coalition members – helped bump up the number of legislative cosponsors to a historic high,” he said. “We remain optimistic that the measure, which has already been approved by the House Judiciary Committee, will go to the House floor and then on to the Senate in the near future.”
Click here to view King’s short video about mobile workforce legislation.