CalCPA weighs in on Mobile Workforce legislation.

• Position: Advocating for the Profession

CalCPA has written a letter to all 53 California Congressional Representatives urging them to support House Resolution 1864, the Mobile Workforce State Income Tax Simplification Act of 2011. This important bill would create a uniform standard for determining when an employee's earnings would be subject to state income tax and withholding, reducing the complexity of tracking varying state requirements.

HR 1864 uses a uniform threshold for when an employee's earnings would be subject to state income tax and withholding when the employee performs work in a state for more than 30 days during the calendar year. Specifically the bill will limit state taxation of the compensation of any employee who performs duties in more than one state to the state of the employee's residence and the state in which the employee is physically performing duties for more than 30 days.

CalCPA believes the 30-day de minimis threshold will help reduce the confusion of varying state requirements and significantly simplify compliance for all taxpayers...