Scanlon Introduces Remote Worker Relief Act to Eliminate Tax Surprise for Remote Employees During COVID-19
Congresswoman Mary Gay Scanlon introduced the Remote Worker Relief Act to make it easier to file taxes as many workers have temporarily relocated due to COVID-19.
During this pandemic, over one third of America’s workforce is working remotely as a result of closed workplaces, public safety orders and mandates, and to take care of loved ones and children. But, due to this remote work, many employees are currently working in a different location than where their employer is located.
In many states, income taxes are based on where an employee's services are performed, not the location of their employer. Now, employees working remotely in a state other than where they typically work may unknowingly incur taxes in that state. The Remote Worker Relief Act will ensure that remote employees will continue paying state taxes in the jurisdiction of their place of work, not where they are temporarily residing.
“The Remote Worker Relief Act will provide certainty for workers, businesses, and state governments as we navigate one of the most challenging public health crises we’ve faced as a nation,” Congresswoman Scanlon said. “This bill maintains the status quo for state income taxes and income earned by remote workers living in a tax jurisdiction different from their place of work for the 2020 tax year. This will prevent remote workers from bearing the onerous burden of determining which states they may owe taxes to.”
This legislation was officially introduced on Friday, August 14, 2020. A copy of this bill can be found here.