The Honorable Mark Warner
United States Senate
Washington, DC 20510
Dear Sen. Warner:
On behalf of the more than 11,000 members of the Virginia Society of CPAs (VSCPA), we are writing in strong support of the Thune-Brown Mobile Workforce deficit-neutral reserve fund amendment to the Budget Reconciliation bill that will be considered by the Senate this week.
The Thune-Brown amendment has no federal budget impact and supports the principles of their legislation, S. 386, which prevents unexpected or double taxation of employees as they travel outside of their home state for temporary work assignments.
Every work day in our country, thousands of Americans travel outside of their home state on business trips for temporary periods. Each state has its own set of requirements for filing non-resident individual income tax returns and commensurate rules for employer withholding on those employees. Most individuals are not aware of this patchwork of non-resident state income tax filing rules, and many employers are required to incur extraordinary expenses to comply with withholding requirements. States also expend considerable resources in processing de minimis tax returns and refunds for non-residents.
The Mobile Workforce State Income Tax Simplification Act, S. 386, is bipartisan legislation designed to enhance compliance with state personal income tax laws and simplify the onerous burdens placed on employees who travel outside of their resident states for temporary periods and on employers who have corresponding withholding and reporting requirements. The Mobile Workforce State Income Tax Simplification Act would establish a 30-day threshold and other fair, administrable and uniform rules to help ensure that the appropriate amount of tax is paid to state and local jurisdictions without placing undue burdens on employees and their employers. Identical legislation (H.R. 1864) was passed by voice vote in the U.S. House of Representatives during the 112th Congress.
On behalf of employers and their employees in our state who travel for business, we respectfully request that you support the Thune-Brown Mobile Workforce amendment during the Senate Budget Reconciliation process, and also support eventual passage of S. 386 during this Congress.
Thank you for your service to Virginia and to our nation. If you have questions, or if we can be of any further assistance, please contact me or VSCPA Government Affairs Director Emily Walker at [email protected] or (804) 612-9428.
Colette Y. Wilson, CPA
Virginia Society of CPAs