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Bill > S604

US S604

US S604
Mobile Workforce State Income Tax Simplification Act of 2019

summary

Introduced
02/28/2019
In Committee
02/28/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

A bill to limit the authority of States to tax certain income of employees for employment duties performed in other States. This bill prohibits the wages or other remuneration earned by an employee who performs employment duties in more than one state from being subject to income tax in any state other than (1) the state of the employee's residence, and (2) the state within which the employee is present and performing employment duties for more than 30 days during the calendar year. The bill exempts employers from state income tax withholding and information reporting requirements for employees not subject to income tax in the state under this bill. For the purposes of determining penalties related to an employer's state income tax withholding or reporting requirements, an employer may rely on an employee's annual determination of the time expected to be spent working in a state in the absence of fraud or collusion by such employee. For the purposes of this bill, the term "employee" excludes professional athletes; professional entertainers; production employees who perform services in connection with certain film, television, or other commercial video productions; and public figures who are persons of prominence who perform services for wages or other remuneration on a per-event basis.

AI Summary

This bill, the Mobile Workforce State Income Tax Simplification Act of 2019, limits the authority of states to tax the income of employees who perform work duties in multiple states. The key provisions are: 1. Wages or other remuneration earned by an employee who works in more than one state are only subject to income tax in the state where the employee resides or the state where the employee is present and performing work duties for more than 30 days during the calendar year. 2. Employers are exempt from state income tax withholding and information reporting requirements for employees who are not subject to income tax in a state under this bill. 3. Employers can rely on an employee's annual determination of the time they expect to spend working in each state, unless the employer has actual knowledge of fraud or collusion. 4. The bill excludes certain categories of workers, such as professional athletes, entertainers, production employees for films/TV, and public figures, from the definition of "employee" for the purposes of this legislation. The bill takes effect on January 1 of the second calendar year after its enactment and does not apply to tax obligations that accrued before the effective date.

Committee Categories

Budget and Finance

Sponsors (39)

John Thune (R)*,  Tammy Baldwin (D),  John Barrasso (R),  Richard Blumenthal (D),  Cory Booker (D),  John Boozman (R),  Sherrod Brown (D),  Maria Cantwell (D),  Shelley Moore Capito (R),  Ben Cardin (D),  Susan Collins (R),  Catherine Cortez Masto (D),  Mike Crapo (R),  Ted Cruz (R),  Joni Ernst (R),  Deb Fischer (R),  Maggie Hassan (D),  John Hoeven (R),  Cindy Hyde-Smith (R),  Johnny Isakson (R),  Angus King (I),  Amy Klobuchar (D),  Patrick Leahy (D),  Mike Lee (R),  Chris Murphy (D),  Patty Murray (D),  Gary Peters (D),  Rob Portman (R),  Jack Reed (D),  Jim Risch (R),  Jacky Rosen (D),  Marco Rubio (R),  Brian Schatz (D),  Jeanne Shaheen (D),  Thom Tillis (R),  Pat Toomey (R),  Chris Van Hollen (D),  Sheldon Whitehouse (D),  Roger Wicker (R), 

Last Action

Read twice and referred to the Committee on Finance. (on 02/28/2019)
(3 Companion Bills)

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