Friday, April 16, 2010

So, Bucky, You Are Thinking of Permitting Employees to Telecommute

Employers were urged recently by not only the President’s Council of Economic Advisers to embrace workplace flexibility, including telecommuting, the First Lady and the President himself showed up at the workplace flexibility forum to deliver remarks endorsing such ideas. So, being a good citizen, you are considering encouraging telecommuting. After all, Al Gore would give you gold stars for reducing your carbon footprint. But, wait a minute—what about the tax implications? The South Florida Business Journal, last Friday, has a fascinating article that is just the tip of the iceberg in terms of some tax issues that employers considering telecommuting, ought to consider. The article points out that, in a recent tax ruling, Colorado imposed on a Miami-based company with one telecommuter in Colorado, income tax obligations and sales tax obligations. The article indicates that state income tax authorities, in this dismal economy, are increasingly aggressive and creative in finding ways to generate revenue, and imposing tax obligations on companies located elsewhere with a single employee in the state who telecommutes may be enough to permit significant taxes being imposed.