NU Online News Service, Nov. 22, 11:12 a.m. EDT
A House panel has passed legislation sought by business interests, including the American Insurance Association, that imposes a uniform 30-day presence requirement for non-resident personal income-tax returns.
Willem Rijksen, an AIA spokesman, says the trade group supports the legislation because the current system, which requires compliance with varying state tax requirements for non-residents who may work just one day in a particular jurisdiction, is too burdensome.
"A uniform 30-day presence requirement for non-resident personal income-tax returns will benefit both employers and employees," he says.
The bill is H.R. 1864, the Mobile Workforce State Income Tax Simplification Act. It passed the House Judiciary Committee last Thursday by voice vote.
The proposed legislation says that, consistent with current law, the legislation provides that an employee's earnings are subject to full tax in his/her state of residence. An employee's earnings would also be subject to tax in the state(s) within which the employee is present and performing employment duties for more than 30 days during the calendar year.
Under the legislation, certain uncommon types of employees, including professional athletes, professional entertainers, and certain public figures, are not covered by the bill and remain subject to each state's laws.
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