#WORKING REMOTELY FROM HOME IN MA PROFESSIONAL#

#WORKING REMOTELY FROM HOME IN MA PROFESSIONAL#

The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. Kristie Lowery ( Kenneth Hausser ( Debera Salam ( by NTD’s Tax Technical Knowledge Services group Carolyn Wright, legal editor.Workforce Tax Services - Employment Tax Advisory Services Supreme Court has twice declined to hear challenges on the constitutionality of the rule.įor additional information concerning this Alert, please contact: It is doubtful that New Hampshire law will deter states like New York from enforcing the convenience of the employer rule however, it does present a different set of facts should challenges reach the U.S.

( See EY Tax Alert 2021-1316.)Īlthough the Massachusetts income tax on the wages of New Hampshire's remote workers is no longer required, several states (and localities) have permanently adopted the convenience of the employer rule (e.g., New York).

Supreme Court contesting the Massachusetts income tax imposed on its remote workers. Prior to the Septemexpiration of the Massachusetts temporary rules, New Hampshire filed a case with the U.S. ( See EY Tax Alert 2020-1081.) The effect of the Massachusetts temporary rule was the imposition of Massachusetts income tax on New Hampshire remote workers who were otherwise not subject to a state personal income tax. The law is primarily intended to protect New Hampshire teleworkers from nonresident states that require income tax and withholding regardless of the physical work location if the employee works for an employer within the nonresident state (i.e., convenience of the employer rule).Ī controversy arose during the COVID-19 emergency when Massachusetts adopted temporary rules that required Massachusetts employers to continue to withhold Massachusetts income tax for employees working remotely in New Hampshire. 1097, which declares that income earned or received by New Hampshire residents for services performed entirely within the state shall not be subject to the personal income tax of any other state. New Hampshire Governor Chris Sununu signed into law H.B. Supreme Court has twice declined to hear cases concerning the constitutionality of the convenience of the employer rule. It is unlikely the legislation will deter states like New York from enforcing the convenience of the employer rule.

New Hampshire legislation seeks to protect residents who work for out-of-state employers by prohibiting nonresident states from imposing an income tax on services performed within the state.New Hampshire law prohibits nonresident state income tax on residents working remotely for out-of-state employers

Working remotely from home in ma