Many businesses in the United States have started or expanded their work-from-home policies due to the coronavirus pandemic. These businesses cannot forget that many changes, including working remotely, come with tax consequences. As the workforce continues to disperse, states will take a closer look at how their bottom lines are impacted.
The fight over payroll taxes has already begun. New Hampshire is facing off with New York and Massachusetts over residents who previously commuted to Boston and New York City for work but are now working from home in New Hampshire.
On Jan. 25, 2021, the U.S. Supreme Court invited the U.S. solicitor general to file a legal brief expressing the views of the United States regarding New Hampshire’s motion for leave to file a bill of complaint in New Hampshire v. Massachusetts, which argues that Massachusetts’s regulation violates the federal commerce and due process clauses by taxing New Hampshire residents for work performed entirely in New Hampshire.