A bipartisan bill has been introduced in the Senate with the goal of simplifying income tax collections for taxpayers who work in multiple states.
Senators Sherrod Brown, D-Ohio, and John Thune, R-S.D., led a bipartisan group of senators Tuesday to introduce the Mobile Workforce State Income Tax Simplification Act, legislation that would simplify and standardize state income tax collection for employees who travel outside of their home state for temporary work assignments.
While some states require state income tax filing for as little as one day of work in the state, the Mobile Workforce State Income Tax Simplification Act would establish a 30-day threshold to help ensure that an equitable tax is paid to the state and local jurisdiction where the work is being performed while alleviating employees and employers from burdensome tax requirements.
“This common-sense legislation will help simplify and standardize tax filing for employees and employers that conduct business in multiple states,” Brown said in a statement. “This is a great example of government working to reduce burdensome and confusing barriers to help ease the cost of doing business for employers and their workers.”