Bradley partner Bruce Ely was quoted in the Birmingham Business Journal on the potential tax impact of companies implementing work-from-anywhere policies.
Ely said several states have withdrawn or announced plans to soon withdraw their safe-harbor protections, which could leave both remote workers and their employers at risk.
“Not only do employers need to know where their employees are physically working from these days, or plan to work, they also must monitor the status of various ‘safe harbor’ notices or rulings that many states have issued during the Covid pandemic,” Ely said.
Additionally, Ely said it’s a good idea for workers to pre-clear moves to other states with their employer and be prepared to potentially be told “no.”
“One employee’s presence [in a state] might trigger an expensive filing and tax obligation,” he said.
The original article, “Playbook for 2022: How to avoid tax landmines with remote work plans,” appeared in the Birmingham Business Journal on January 5, 2021.