House Passes Mobile Workforce Bill
The US House of Representatives has passed the Mobile Workforce Bill, simplifying tax compliance rules for individuals who work in multiple states.
The bill would establish a uniform national standard governing the withholding of state income taxes for non-resident employees. The bill passed by voice vote.
“The House’s passage today of H.R. 1864, the Mobile Workforce State Income Tax Simplification Act of 2011, is a critical step toward balancing and streamlining onerous recordkeeping and reporting requirements for workers who are required to file non-resident personal income tax returns because they work temporarily outside their home state,” said Barry Melancon, president and CEO of the American Institute of CPAs, in support of the U.S. House of Representatives for passing H.R. 1864.
Melancon added: “The bill would establish a uniform requirement that non-residents would have to work in a state for more than 30 days before becoming subject to out-of-state income taxes. The uniform standard would improve compliance and still guarantee that state governments could collect the taxes owed to them.
“The AICPA strongly supports H.R. 1864, and we thank the many state CPA societies from across the country who wrote to their members of Congress in support of the bill. We also thank Representative Howard Coble, a Republican from North Carolina, and Representative Hank Johnson, a Democrat from Georgia, for their leadership in successfully steering this legislation through the House.
Next, the bill’s proponents are now awaiting hearing at the Senate.