Federal Spotlight: Mobile workforce taxation

February 18, 2016

States currently have inconsistent standards and requirements for employees to file personal income tax returns when traveling to a nonresident state for temporary work periods, and for employers to withhold income tax on employees who travel outside their state of residence for temporary work periods. In Iowa, according to the Mobile Workforce Coalition, an employee’s tax liability begins on the first day of travel within the state. The multiple requirements for employers and employees who do business in more than one state is a regulatory burden and onerous on the employees. ABI is part of a coalition of more than 280 companies and organizations nationwide supporting a federal initiative to address the challenges.

The coalition is seeking more congressional cosponsors. If this issue affects you consider sending a letter to Sen. Chuck Grassley and Iowa’s other federal lawmakers asking them to become cosponsors. All you have to do is enter some brief contact info and the website does the rest. You can find it here: http://www.mobileworkforcecoalition.org/contact-congress/#/6.