8180 NW 36th St., Suite 301, Doral FL 33166 (305) 517-3977 info@ia.tax

Is allowing my staff to work virtually creating new tax issues?

Working Remotely and Taxes
Since March of this year, many of us have transitioned our businesses to working remotely due to the impacts from Covid-19.  This has resulted in some of our staff working from home or other remote locations, and while we all struggled to get our companies set up to deal with this issue, most of have now settled into our new work environments.  Most all state governments recognize that this was necessary due to Covid-19, however my experience is that state governments are always looking to capture tax dollars when applicable.  This leads us to the concept of nexus for tax purposes.  Nexus is generally defined as having a physical or other legal connection to a state and requires a business owner to register for taxes there.  Now for some of us that only have employees working remotely in our company's home state, this isn't an issue.  But for others, we may have our business located in a state that closely borders other states. Prior to the Covid-19 pandemic, those employees commuted to your business location but are now working remotely in another state.  An example would be an employee that lives in CT and worked in NY prior to the pandemic, but is now working from home in CT.  Having an employee working remotely on a permanent basis in another state other than one you are registered to do business in will create nexus with that state.  
Now while we all hope that the Covid-19 situation goes away soon, some of us may have re-thought our business model and wish to keep workers remote and reduce our office space or not have one at all.  If this is your case and you have permanent employees working in a state that your business is not registered to do business in, please give us a call so we can provide you with a case by case verdict on whether you need to register for business in that state.  
As a company that employs staff that work remotely, this topic is near and dear to my heart and one that I have a lot of experience with.  So please if you have any questions, don't hesitate to reach out.

Mathew Shiebler, CPA

Matthew Shiebler, CPA is the President of Interactive Accountants, LLC a CPA Firm based in Doral. He is a licensed CPA in the states of Florida, New Jersey and New York and a member of the American Institute of Certified Public Accountants (AICPA). Since 1993, it has been his mission to help small and medium sized companies to comply with all their accounting needs. Whether it be taxes, finances or acquisitions and mergers, Matthew is well versed in all aspects. Matthew has unique experience in the hospitality and restaurant industries, law firms, medical practices, e-commerce, technology firms and start-ups. It is his passion to bring his experience and knowledge to all his clients.

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About Us

At Interactive Accountants, we have one primary goal. We help you minimize your taxes and measure your success. Throughout the years, we’ve helped hundreds of entrepreneurs by taking accounting matters off their plate, providing stellar ongoing tax advice and amazing customer support.

Contact Info

8180 NW 36th St., Suite 301, Doral FL 33166

(305) 517-3977