(From Reuters) Employers and payroll professionals face complex challenges in managing remote and hybrid work arrangements. Kim Wylam and Timothy J. Beary from Baker Tilly highlighted the top three remote work tax challenges:
- Remote work often leads to multiple tax nexus points, requiring employers to collect tax withholding on employees' income and report it to the proper tax jurisdiction.
- States have differences in their employment laws, creating complexity regarding compliance with leaves of absence, paid sick and disability leave, break time and pay transparency laws.
- Employees may not always notify their employer when moving to another state, potentially resulting in compliance issues.
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