Webinar Details $219
- Webinar Date: February 27, 2025
- Webinar Time: 2:00pm - 3:40pm EST live
- Webinar Length: 100 Minutes
- Guest Speaker: Vicki Lambert
- Topic: Taxation and Accounting, Payroll, Human Resources
- Credit: ATAHR 1.5, ATAPR 1.5, ATATX 1.5, CPE 2.0, HRCI 1.5, SHRM 1.5, RCH 1.5
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This webinar discusses the issues surrounding employees working anywhere outside the traditional office.
BackgroundBefore the pandemic, we all normally worked together in the same office at the same time. Then, suddenly, Covid hit. And everything changed. Hundreds of thousands of employees scattered to the four winds. Some just went home from the office and stayed there. Others moved their home, maybe to be closer to family for the duration. And we all thought that after Covid was over everything would return to as it was. But has it and will it?
Many employees discovered that they enjoyed working from home and were even more productive, while still others longed to return to the office. 21st-century technology allowed us to work from anywhere during the pandemic and will continue to allow employees and employers the freedom to work from anywhere. Unfortunately, as we come to a close on the major upheaval of the pandemic and start to settle into the new normal of office life, the compliance issues are not as easy to address as the technology ones were at the beginning.
During the pandemic, many states did not enforce their taxation rules because they too assumed that the moves by employees were temporary. Why set up as an employer in a state that your employee will only be there for 2 months, never to return to work there again? As the dust settles, we are discovering that employees working totally outside of the standard office or as a hybrid employee (part-time in office, part-time at home) is becoming the new norm. The states are reacting to this new business model. No more free pass on taxing employees working from home which happens to be across the state line. By 2022 all states reverted back to their withholding requirements for state income tax to be honored as it would have been pre-Covid. So just what are those taxation requirements? What if the employee works as a hybrid, coming into the office a couple of days per week? What if they work from home and only come into the office once a month, a quarter, or even once a year? Does that alter the requirements? And is state income tax the only compliance issue?
Where an employee is physically located determines which state’s wage and hour laws apply. An employee now living and working from home in Indiana would be subject to Indiana wage hour laws even if the employee used to work in Illinois and the employer is still located in Illinois. Overtime rules, minimum wage rates, permitted deductions from paychecks, and even paystub requirements are governed by where the employee is physically performing the work. The same applies to garnishments for child support and creditors. Payroll must make determinations on all these compliance issues in the age where employees can work from literally anywhere.
Topics Covered:- State income tax withholding requirements for employees working from anywhere
- Local tax issues
- Who gets the state unemployment insurance for hybrid workers
- Which wage and hour laws apply when employees work from anywhere
- Do wage hour laws or tax laws change if the employee comes into the “office” once a week, month, or quarter
- Which sick pay laws apply for hybrid employees
- What compliance issues arise concerning child support and creditor garnishments
- Travel pay issues for hybrid employees
- Payroll Executives/ Managers/ Administrators/ Professionals/ Practitioners/ Entry Level Personnel
- Human Resources Executives/ Managers/Administrators
- Accounting Personnel
- Business Owners/ Executive Officers/ Operations and Departmental Managers
- Lawmakers
- Attorneys/ Legal Professionals
- Any individual or entity that must deal with the complexities and requirements of Payroll compliance issues
Level: Basic
Format: Live webcast
Instructional Method: Group: Internet-based
NASBA Field of Study: Accounting
Program Prerequisites: None
Advance Preparation: None
- Introduction
- Our Focus For Today 00:01:11
- Determining If The Company Is An Employer In The State And Liable For State Income Taxes 00:06:57
- State Income Tax 00:07:12
- Determining State Withholding Liability—Are You An Employer? 00:07:45
- In Other Words… 00:09:29
- Resident vs. Nonresident 00:10:36
- Telecommuting 00:16:36
- Telecommuting - Convenience Of The Employer” Rules 00:20:36
- Arizona Example 00:23:19
- Arizona 00:25:45
- Arizona Cont’d 00:26:03
- Arizona Example that Meets The Criteria For Not Withholding AZ SIT 00:26:30
- California Example 00:27:36
- Connecticut Example 00:28:30
- Maine Example 00:29:19
- Maine Example Cont’d 00:29:56
- Another Example: Nebraska 00:30:13
- Local Tax Issues 00:30:55
- PA Example—Act 32 00:31:24
- PA Example—Act 32 Cont’d 00:32:16
- PA Example—Act 32 Cont’d 0033:10
- PA Example—Act 32 Cont’d 00:33:44
- State Unemployment Insurance - Determining The State 00:36:37
- Four Factor Test for SUI 00:37:48
- Four Factor Test for SUI Cont’d 00:39:23
- Localization Of Services 00:42:13
- Example 00:42:50
- Base of Operations 00:43:16
- Example 00:44:08
- Place of Direction or Control 00:44:35
- Example 00:45:07
- Place of Residence 00:45:36
- Example 00:46:14
- Reciprocal Coverage Agreements 00:46:29
- Example 00:48:25
- State Wage and Hour Laws 00:50:07
- States Setting Minimum Wage 00:52:58
- Minimum Wage by State 00:53:02
- Current State Minimum Wages 00:53:41
- Tip Credit Against Minimum Wage 00:55:32
- Tip Credit Against Minimum Wage - Map 00:57:46
- Meals and Lodging Credits Against Minimum Wage 00:58:09
- Meals and Lodging Credits Against Minimum Wage - Map 00:58:42
- State Requirements 00:59:13
- State Updates CA Meals & Lodging 00:59:46
- State Update NJ 01:01:37
- Meals and Rest Periods -State Setting Requirements 01:01:59
- Meals and Rest Periods 01:02:59
- Meal Periods by State 01:03:54
- Rest Periods 01:04:16
- Frequency of Wage Payments - State Setting Requirements 01:04:53
- Frequency of Wage Payments 01:05:17
- Permitted Payroll Frequencies 01:05:59
- Max Period Permitted for Nonexempt Employees for Private Sector Employers 01:07:24
- State Setting Requirements - Salary Levels And Job Duties Test 01:08:28
- Where the States Stand— Current Rules for EAP Employees 01:09:09
- Sample: Where the States Stand— Current Rules for EAP Employees 01:11:15
- Sample: Where the States Stand— Current Rules for EAP Employees - 2024 01:11:31
- For Example: AK 01:12:43
- For Example: CA 01:13:22
- For Example Connecticut - Executive Exemption 01:13:40
- For Example: Connecticut - Criteria 01:13:48
- For Example: Washington 01:14:03
- Mandatory Sick or Paid Leave 01:15:00
- State Flow Chart 01:15:08
- For Example: AZ vs NV 01:15:55
- Child Support and Creditor Garnishments 01:17:39
- Creditor Garnishment Limits by State 01:18:29
- States With Unique State Rules 01:19:30
- Limits on Child Support 01:22:00
- Child Support Limits by State 01:22:34
- Travel Pay Issues 01:22:59
- State Watch for Travel Pay 01:23:59
- California— But of Course 01:27:03
- California 01:28:30
- Example 01:28:53
- Arkansas 01:29:52
- Iowa 01:30:04
- Other States…Colorado and New Jersey 01:30:27
- Other States…New York and Vermont 01:30:42
- Travel Pay by State 01:32:05
- Useful Links 01:34:51
- Attendee Questions 01:35:42
- Presentation Closing 01:51:00
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Vicki M. Lambert, CPP
Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations.With over 35 years of hands-on experi [...]
ATAHR Credit
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HRCI Credit
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RCH Credit
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- Child Support 01:17:40, 01:22:01
- Consumer Credit Protection Act (CCPA) 01:22:07
- Department of Labor (DOL) 00:57:43
- Disposable Income 01:18:29, 01:22:14
- Exempt 00:05:31, 00:05:44, 00:09:04, 00:35:56, 01:14:22
- Exempt Employee 00:05:30, 01:08:35
- Fair Labor Standards Act (FLSA) 01:12:43, 01:25:03
- Form W-4 00:35:54
- Garnishment 00:06:32, 00:50:40, 01:18:23, 01:19:20, 01:20:02, 01:22:13
- Liability 00:07:49, 00:09:20
- Minimum Wage 00:05:25, 00:51:34, 00:55:39, 00:58:40, 01:18:31
- Nexus 00:09:30, 0022:54, 00:49:22
- Non-exempt 00:09:04
- Overtime 00:51:39
- Portal-to-Portal Act 01:25:00
- Reciprocal Agreements 00:46:39
- State Unemployment Insurance (SUI) 00:37:23, 00:39:57, 00:43:00, 00:59:55
- Temporary Disability Insurance (TDI) 00:51:58, 00:59:56
- Travel Pay 00:06:42, 01:23:12, 01:26:19, 01:32:03
- Wage 00:04:50, 00:09:03, 00:50:07, 01:02:00, 01:14:27, 01:27:42
Child Support: Child support is an ongoing, periodic payment made by a parent for the financial benefit of a child following the end of a marriage or other similar relationship.
Consumer Credit Protection Act (CCPA): The Consumer Credit Protection Act (CCPA) is a piece of federal legislation that puts in place consumer protections against lenders. Passed in 1968, the law requires lenders to explain the actual cost of borrowing money in terms the consumer understands.
Disposable income: Disposable income is the portion of an employee's paycheck that is subject to garnishments. This portion is what remains after the following amounts are deducted from their gross earnings for a given pay period. Voluntary deductions, such as 401(k) contributions, are considered part of disposable income.
Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage
Exempt Employee: An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.
Fair Labor Standards Act (FLSA): The Fair Labor Standards Act of 1938 29 U.S.C. § 203 is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor".
Form W-4: Form W-4 (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.
Garnishment: A legal summons or warning concerning the attachment of property to satisfy a debt
Liability: In financial accounting, a liability is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.
Minimum Wage: The lowest wage paid or permitted to be paid specifically fixed by a legal authority or by contract as the least that may be paid either to employed persons generally or to a particular category of employed persons.
Nexus: The term nexus is used in tax law to describe a situation in which a business has a "nexus" or tax presence in a particular state or states. A nexus is basically a connection between a taxing jurisdiction, like a state, and an entity like a business that must collect or pay the tax.
Non-exempt: Non-exempt employees are workers who are entitled to earn the federal minimum wage for every hour they work. Such workers likewise qualify for overtime pay, which is calculated as one-and-a-half times their hourly rate, for every hour they work, above and beyond a standard 40-hour workweek.
Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.
Overtime: Overtime is time and a half of what an employee earns for every hour worked over 40 in a workweek. The FLSA salary threshold is the minimum salary employers must pay employees for them to be exempt from overtime wages.
Portal-to-Portal Act: An amendment to the Fair Labor Standards Act (FLSA) clarifying that certain activities are generally not compensable working time under the FLSA. The Portal-to-Portal Act provides that employers are not required to pay for the time employees spend on activities or traveling occurring before or after they perform the principal activities for which they are employed.
Reciprocal Agreements: A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.
Resident Alien : A resident alien is a foreign person who is a permanent resident of the country in which he or she resides but does not have citizenship. To fall under this classification in the United States, a person needs to either have a current green card or have had one in the previous calendar year.
State Unemployment Insurance (SUI): The Federal-State Unemployment Insurance Program provides unemployment benefits to eligible workers who are unemployed through no fault of their own.
Travel Pay: Travel Pay is payment for expenses employees spend traveling for work-related activities. This could include airfare, trainfare, gas and milegae, and meals.
Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.