New York Convenience Rule

[Summit1]

A friend has been offered a job with a company that is located in NY. He will be working from GA. In his job offer they referenced the New York Convenience Rule. Does this mean he will need to have GA and NY tax withheld?

[Just-Lisa-Now-]

What does the NY Convenience Rule say?

[Summit1]

Due to the rise of remote working and telecommuting various states have adopted the Convenience of Employer Rule to regulate income tax withholding. Under the Rule, employees working for a business located in one state but perform from another state are subject to the tax laws of their employer's state. As a result, individuals working for a business located in states (NY) that have adopted the convenience rule are often subject to double taxation-they must pay income tax in their resident state as well as their employer's state. 

I am just trying to see if anyone has experience with this and if there are any exceptions to avoid the double taxation.

[Just-Lisa-Now-]

thats a terrible rule, I hope your client asks for a raise to offset some of this extra tax he'll be paying.

[BobKamman]

Why does this remind me of the Jack Paar joke about the Wayside Chapel?  Maybe because convenience is often paired with porcelain.  

[Summit1]

I agree...there are exceptions but I didn't want to get to deep into that. I advised this person to contact HR and get advice and also ask to speak with other employees that are working with this arrangement.

[Summit1]

Can't beat tax season humor!

[sjrcpa]

NY is like that.

The client should get a credit for tax paid to NY on their resident state return.

[Summit1]

Thank you for the information!