close back

U.S. interstate business travel – Yet another tax headache!


Warning: array_push() expects parameter 1 to be array, null given in /home/msigts/public_html/wp-content/themes/msi-parent-theme/content-page.php on line 28

Blog

Move for Hunger

MSI and Move for Hunger Announce Collaborative Effort to Help Feed Families in Need

12 February 2018 / By Nick Royle / Business  / Domestic Relocation  / Global Talent Mobility  / HR  / Relocation  / Talent Mobility  / 

MSI has partnered with Move for Hunger to help fight hunger and provide much-needed assistance to food banks across the…

Read More
reskilling

Reskilling Yields High Returns for Both Businesses and Economies – a Win-Win for All

29 January 2018 / By Nick Royle / Business  / HR  / Talent Management  / 

Over the past decade or so, as landlines became increasingly obsolete, telecom giant AT&T faced a massive human capital challenge.…

Read More

More Blogs


Warning: array_push() expects parameter 1 to be array, null given in /home/msigts/public_html/wp-content/themes/msi-parent-theme/content-page.php on line 28

MSI News

Move for Hunger

MSI Global Talent Solutions and Move for Hunger Announce Collaborative Effort to Help Feed Families in Need

Hampton, NH February 12th 2018 – MSI Global Talent Solutions, a professional services organization dedicated to helping companies create human…

Read More
MSI

MSI Global Talent Solutions Launches New Website

Hampton NH, January 5th 2018 — MSI launches new website to showcase its global human capital advisory business. MSI Global…

Read More

More News


Warning: array_push() expects parameter 1 to be array, null given in /home/msigts/public_html/wp-content/themes/msi-parent-theme/content-page.php on line 28

Twitter

Read More


Warning: array_push() expects parameter 1 to be array, null given in /home/msigts/public_html/wp-content/themes/msi-parent-theme/content-page.php on line 28

Whitepapers

An introduction explaining what these whitepapers are about & why people should register should go here

high-risk travel

Keeping Employees Safe in High Risk Locations

Keeping their global business travelers and assignees safe when visiting high-risk travel locations has become much harder for companies than…

Download

Enforcing Restrictive Covenants in Foreign Locations

Anytime a company sends an employee on assignment, there are multiple issues to consider when dealing with the host country’s…

Download

Read More


Warning: array_push() expects parameter 1 to be array, null given in /home/msigts/public_html/wp-content/themes/msi-parent-theme/content-page.php on line 28

Webinars

GDPR – Will you be ready?

Summary: What is the GDPR?  Who needs to comply? In this session we reviewed the highlights of the new General…

Read More

Global Talent Strategy: Modernization to Facilitate Success

Summary: Organizations continue to be impacted by the evolution of advancing technologies, shifting political climates and high competition for quality…

Read More

Read More


Warning: array_push() expects parameter 1 to be array, null given in /home/msigts/public_html/wp-content/themes/msi-parent-theme/content-page.php on line 28

Warning: array_push() expects parameter 1 to be array, null given in /home/msigts/public_html/wp-content/themes/msi-parent-theme/content-page.php on line 28

Glossary

  1. A
  2. B
  3. C
  4. D
  5. E
  6. F
  7. G
  8. H
  9. I
  10. J
  11. L
  12. M
  13. N
  14. O
  15. P
  16. Q
  17. R
  18. S
  19. T
  20. U
  21. V
  22. W
  23. X
  24. Y
  25. Z

Read More

U.S. interstate business travel – Yet another tax headache!

6 February 2017 / By Nick Royle / export  / Global Compensation & Payroll Administration  / HR  / Tax  / 

Not that long ago, interstate business travel in the United States wasn’t yet the tax headache it’s become today. In fact, many who traveled beyond their home states for business didn’t realize they could be taxed by other states on the income they earned while there. Many employers, who would have been required to withhold and report on this income, were also largely unaware.

Now though, awareness has increased exponentially, due to a greater likelihood of financial consequences for noncompliance. As the result of new technologies that have made it faster and easier to identify tax violations, states with income taxes are now generating substantial additional revenue by penalizing those not in compliance.

Yet another tax headache!

In some instances, penalties can be significant. One company, for example, recently received a $10 million assessment for withholding and reporting violations in New York.

As might be imagined, this has created numerous challenges for companies with many U.S. interstate business travelers. Because there’s considerable variation from state to state around withholding thresholds and requirements (or a lack of them), staying compliant can be an enormous and highly complex task.

To manage this, many have found it helpful to bring in compliance specialists, who can help determine the size of the issue, identify risks and objectives, define mitigation processes, and promote collaboration among all applicable departments (e.g., mobility, HR, payroll, finance, and tax). Third party consultants can also facilitate senior leadership buy-in, which will further promote compliance efforts and clarify the benefits to the company.

In addition, companies wishing to successfully mitigate their risk are implementing rigorous data management processes. Components include maintaining accurate employee location data and amounts and types of compensation. In addition to base salary, the latter includes long-term bonuses and awards and equity awards/stock options.

In order to streamline this task, many are using travel tracking technology. This not only saves time and money, but mitigates risk even further: should there be an audit, it attests to the fact that a company is making a good faith effort to be compliant.

Register

Create an Account


Already have a user account?

Thank you for registering!

The page will reload soon and you will be able to see our premium content.

Close