House Passes H.R. 1393, The Mobile Workforce State Income Tax Simplification Act of 2017

By: Michael J Bateman, CPP ~ Government Liaison Officer

On June 20th, the US House of Representatives passed legislation to simplify state income tax rules for employees who travel across state lines.

Currently states have inconsistent and varying standards for determining when an employer must withhold state income tax from employees who travels outside their state of residence for business purposes.

This bill will simplify the obligation for employers and workers who operate over state lines by prohibiting states from imposing individual income taxes and employer withholding obligations on income earned for the performance of employment duties by nonresidents of the state, unless the nonresident was present and performing employment duties in the state for more than 30 days in a calendar year.

The Mobile Workforce State Income Tax Simplification Act of 2017 passed by voice vote in the House, but still awaits action in the Senate, where it has also been introduced.

“The House has taken a major step toward streamlining the state income tax reporting and filing process today,” Bishop said in a statement. “Currently, employers and their traveling employees must navigate their way through a complicated maze of varying state income tax laws when they leave their home state for work. By simplifying these requirements across America, we can reduce compliance costs and confusing paperwork for everyone involved. I applaud the House for passing our bipartisan legislation and urge the Senate to join us in supporting our mobile workforce and economy.”

Call to Action
We need your assistance in getting this important legislation passed thru the Senate by asking Senators Michael Bennett and Cory Gardner to sign on as a cosponsor of the Mobile Workforce State Income Tax Simplification Act (H.R. 1393 / S. 540). All you have to do is click the link below, click on ‘Contact Congress’ and input your name and address, and the Mobile Workforce Coalition will do the rest. There are options to share personal stories, too. Voice your support now!