Wage Allocation for NYS Income Tax Purposes
Telecommuting is on the rise. Recently, we've seen large shifts in where employees work largely due to COVID-related changes. Even now, as stay-at-home orders have been lifted, telecommuting for at least part of the workweek has become the new normal. At the same time, we see increasingly aggressive audit enforcement by New York State and other state tax departments against non-residents. These audits involve confusing and often contradicting state income tax allocation rules. Consequently, taxpayers may find themselves out of compliance in one or more states. The convergence of these issues has created a whole new level of concern due to the proliferation of telecommuting.
This course will focus on wage allocation rules for NYS income tax purposes, with a review of the relevant requirements, issues, and traps that must be carefully managed. Presenter Ariele R. Doolittle, Esq., brings significant experience in this area. She will discuss different considerations and approaches to safely navigate these dangerous waters.
Learning Objectives:
- Summarize state residency rules
- Identify state resident credit considerations
- Recognize how to allocate different types of compensation for state income tax purposes
- Determine optimal approaches to compliance
