This bill would eliminate the need for an employee who travels for an extended period of time because of work to file an income tax return in the state they travel to unless they spend more than 30 days working in that state. Workers would only owe income tax in the state they reside in, and a state in which they work for more than 30 days during the calendar year.
Employers would be exempt from state income tax withholding and information reporting requirements for employees not subject to income tax in that state. When determining penalties related to state income tax withholding requirements, employers would be allowed to rely on an employee’s annual determination about how much time they’ll spend working in a state in the absence of fraud or collusion on the employee’s part.
This legislation would exclude the following professions from the definition of “employee”:
Production employees who perform services in connection with certain film, television, or other commercial video productions;
Public figures who are persons of prominence who perform services for wages or other remuneration on a per-event basis.
This legislation would take effect on January 1 of the second calendar year that begins after the enactment of this bill, and wouldn’t apply to any tax obligation accrued before the effective date.