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In September, the U.S. House of Representatives passed the Mobile Workforce State Income Tax Simplification Act (H.R. 2315). The act provides a 30-day safe harbor against nonresident income tax withholding for employees who travel across state borders on business travel.

The struggle to comply with the myriad state thresholds triggering income tax withholding, combined with the fact that payroll systems are generally not equipped to track employee travel, has driven the APA to support this legislation through five consecutive sessions of Congress.

Focus on the legislation moves now to the Senate, where the companion bill (S. 386) lists more than half of all senators (51) as cosponsors. Despite such support, the bill’s passage and enactment are not assured. The APA continues to work closely with the Mobile Workforce Coalition to build even greater support. Further details of the legislation can be found on the Mobile Workforce Coalition’s website.

Check back with Pay News Now as we continue to closely follow the progress of the Mobile Workforce State Income Tax Simplification Act in the Senate.

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