Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Remote Work Yields Savings, But Watch for Tax and Jurisdiction Issues
The pandemic helped to usher in a new wave of remote working — and given the rise of the Omicron variant, that wave seems unlikely to crest any time soon. While the rapid ascent of home offices may have initially come as a shock to more than a few corporate cultures, the truth is that business leaders who embrace long-term remote working can yield significant cost savings and boost employee morale. But first they need to strategize around any number of complex regulatory and compliance issues that can impact everything from business taxes to worker compensation — and often come as a not-so-pleasant surprise to employers without an in-house HR department.
Avoiding those conversations altogether may not be an option. Roughly four million Americans were already working from home well before COVID-19 forced businesses to close their office doors, and many more could be unwilling to return to a cubicle once the public health crisis has subsided. Making a conscious choice to lean into remote working could not only help organizations mitigate employee turnover, but also grant hiring managers access to a wider talent pool no longer constrained by geography — not to mention the savings on overhead costs like office space.
|Tax Considerations
That doesn't mean it will be easy. For starters, the ability to hire remote employees based in other states triggers a slew of challenging tax questions that will likely seem familiar to law firms or companies that are either located near state borders, have experience expanding into new states, or have employees who travel to job sites in other states. The "physical presence" rule dictates that employees pay taxes to the state in which their work is performed. For instance, if a company's head office is in State A but it has remote employee working from home in State B, it would be required to withhold unemployment and state taxes in State B, even if the business doesn't maintain a physical branch office there.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
How Secure Is the AI System Your Law Firm Is Using?
In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.
COVID-19 and Lease Negotiations: Early Termination Provisions
During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.
Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support
The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.
The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies
Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.
Authentic Communications Today Increase Success for Value-Driven Clients
As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.