I appreciate your responses, but I am not certain if I fully agree with point #2 in your decision tree. According to the language from the New York State Department of Taxation and Finance –
If a nonresident employee . . . performs services for his employer both within and without New York State, his income derived from New York State sources includes that proportion of his total compensation for services rendered as an employee which the total number of working days employed within New York State bears to the total number of working days employed both within and without New York State. . . . However, any allowance claimed for days worked outside New York State must be based upon the performance of services which of necessity, as distinguished from convenience, obligate the employee to out-of-state duties in the service of his employer.
In my case, the total number of working days employed within New York State is zero. However, it goes on to state that any allowance claimed for days worked outside New York State must pass the convenience rule test. The employer has asked employees to work from home, which could be seen as a perk (convenience), but it could also be argued that it is done to cut down on rental costs and therefore, deemed as a necessity. From what I read, New York State does not follow the physical presence rule, which taxes workers based on income earned in the state only if they are physically present on that work day.
Additionally, during the pandemic, the Department issued an FAQ stating that if a nonresident's primary office is in New York State, their days spent telecommuting during the pandemic are considered days worked in the state.
