Agencies are facing new tax compliance challenges as a larger portion of their workforces are working remotely either temporarily or permanently. Depending on circumstances, some agencies may not experience a large increase in overall income tax liability with the rise of telework, but they may need to be diligent in ensuring their income is apportioned correctly to states where new remote employees are based. In particular, agencies’ primary concerns may center on income apportionment and withholding obligations for employees.

The Tax Foundation in partnership with H&R Block and the Eversheds Sutherland recently produced a helpful webinar with associated materials which explains the everchanging compliance in this area, highlighting policy issues such as the “convenience rule”, telecommuting nexus, sales and use tax considerations and more.

We highly recommend a listen.