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Remote Workers Need State Tax Filing & Withholding Relief

September 8, 2020

The VSCPA has joined more than 120 employers and organizations across the nation in signing a letter to Congressional leaders urging them to support state tax filing and withholding relief for remote workers during the pandemic by enacting Section 403 of S.4318, the American Workers, Families and Employers Assistance Act, and a related measure, S.3995, the Remote and Mobile Worker Relief Act.  

Like many states, Virginia does not generally attempt to tax nonresident teleworkers when they are physically located in another state. The accounting profession has been consistent in its support of state tax filing relief for remote workers, working with the Council on State Taxation and others to advocate for its inclusion in federal legislation.

With an unprecedented number of workers working remotely, now more than ever it is necessary to adapt to our current economic reality. The VSCPA believes that this legislation is critical to the fiscal health of Virginia, our businesses and our taxpayers and we are asking Congress to provide the relief our country needs. Through reciprocity agreements and by operation of law, Virginia does not tax certain residents of Kentucky, Maryland, Pennsylvania, West Virginia and the District of Columbia that work in Virginia. In return, such states provide a corresponding exemption to certain Virginia residents.