Federal Law May Simplify Road Warrior Payroll Taxes

Road Warrior TaxPayroll taxes can be complicated enough when all your employees are located in one state.  However, if you have employees that travel outside state borders as part of their business activities, further complications can arise as you track dates of travel, and to which states. The way it works now, states have varied standards for requiring workers to file personal income tax returns when those employees work for periods of time in a state where they don’t live. The rules also dictate how employers withhold income tax for those employees.

Simplification of payroll taxes for “road warriors”

Corporations would like to see a streamlined standard for withholding an d collecting income taxes on nonresidents and are backing federal legislation that would make all state tax rules conform. Council on State Taxation (COST) officials say it’s a nightmare for businesses to keep up with the different regulations, state by state.

Senate Bill 1645 and House Resolution 1129 address these concerns and are both known as the Mobile Workforce State Income Tax Simplification Act. These two identical bills seek to establish a federal 30-day threshold for workers traveling to other states for work before a tax obligation results for the employee and the employer. The law, if passed, would greatly reduce the administrative burden on payroll departments tasked with tracking employee travel to nonresident states.

For more information about the Bill / HR, and Frequently Asked Questions about these “road warrior” payroll taxes, click here.

Payroll processing experts

PayVision Online are experts in payroll processing for all your employees, even your “road warriors”. If you have questions about payroll taxes, withholdings, or any other payroll services – our payroll specialists can help.  Call us at 214-442-5888 or contact us to learn more about how you can be “worry free” on your next payday.