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CalCPA weighs in on Mobile Workforce legislation.

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 Withholding

Any tax that is taken directly out of an individual's wages or other income before he or she receives the funds.

Notes:
In other words, these funds are "withheld" from your wages.
, 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 An abbreviated form of the Latin Maxim de minimis non curat lex, "the law cares not for small things." A legal doctrine by which a court refuses to consider trifling matters.  threshold will help reduce the confusion of varying state requirements and significantly simplify compliance for all taxpayers, including CPAs.

Enacting HR 1864 will ease regulatory burdens by allowing employers to better evaluate which employees will need to withhold with·hold  
v. with·held , with·hold·ing, with·holds

v.tr.
1. To keep in check; restrain.

2. To refrain from giving, granting, or permitting. See Synonyms at keep.

3.
 income taxes in states outside of their residence. Additionally, the change will have a negligible impact on state revenues. CalCPA will be urging support for this important bill as it continues through the legislative process.

At press time, HR 1864 has been passed out of the House Judiciary Committee Judiciary Committee may refer to:
  • U.S. House Committee on the Judiciary
  • U.S. Senate Committee on the Judiciary
 and is awaiting hearing before the full house.

Stay abreast of this issue at www.calcpa.org/legissues.

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.
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Title Annotation:Advocating for the Profession
Publication:California CPA
Date:Jun 1, 2012
Words:288
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