Bill > S1443

This bill, called the "Mobile Workforce State Income Tax Simplification Act of 2025," aims to standardize and limit how states can tax income earned by employees who work in multiple states. The bill establishes that an employee's wages can only be taxed by two states: the state where the employee resides and any state where the employee performs work for more than 30 days in a calendar year. Employers can rely on an employee's self-reported expected work location for tax purposes, unless there is evidence of fraud or collusion. The bill provides specific definitions for key terms like "employee," which excludes professional athletes, entertainers, production employees, and certain public figures. Importantly, the bill establishes rules for determining what constitutes a workday in a particular state, such as counting the state where the employee performs more work duties. If an employee works in their resident state and only one other state in a day, they are considered to have worked more in the non-resident state. The bill will take effect on January 1 of the second calendar year following its enactment and will not apply to tax obligations that accrued before its effective date, providing clarity and predictability for employers and employees who work across multiple states.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1443/all-info