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Comment by thedevelopnik | Hacker News Reader

NY and some other states apparently demand income tax payment from fully remote workers if the company’s office is in that state.

I took a fully remote job with a non-profit in NY on 1/2/2021. I live and work in CO. Looks like I might have to hire a CPA for the first time ever. I’m definitely contacting my Congress-people.

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I'm curious, are you double-taxed by both NY State and Colorado State income taxes? I'm not a lawyer but I imagine this raises compelling questions about the power of one US State over the resident of a different State. Supreme Court worthy, perhaps?

That’s why I’ll have to hire a CPA. It wasn’t totally clear to me from that article if it’s double taxation or if NY is just trying to claim taxes I would otherwise owe to CO. And you’re basically under threat of an apparently extra painful audit from NY.

My tax attorney said that California does this as well. I am moving to a state with no state income tax, but California apparently will push for me to pay their tax since our corporate HQ is in California, even though we have offices in other states and countries. Our employees in those other states don't pay California taxes. The situation can get really muddy apparently.

I've heard the CA Franchise Tax Board is ruthless. Worse than the IRS because the CA people don't have to answer to your congressperson but the IRS does.

This is news to me. Is it because you're in California currently? I just got hired by a California based company but I'm from Washington, I'll be remote and if I ever go to the office it will be in Washington.

Yes, in Cali currently. I suspect you won't have the same issue. Our folks in other states don't have this issue either.

It's explained at the end of the Eagles song Hotel California:

    We are programmed to receive.
    You can check-out any time you like,
    But you can never leave!

new hampshire vs massachusetts

Which state collects unemployment and workmen’s compensation insurance?

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