This issue has been brought to the forefront as a result of the pandemic and a significant increase in remote workers. I will provide some additional commentary:
- States are (and have been) scrambling to review their tax laws to make sure they are able to obtain the maximum tax as a result of the remote tax environment; which isn't likely to change much going forward.
- Your company is taking the position that the benefits of your services are derived in OK, and as such, are withholding OK tax.
- This shouldn't be that big of a deal. When you complete your CO tax return, you will be taxed on all of your income, however, you will then get a credit for taxes paid to other states. This minimizes or eliminates your CO tax liability. The end result shouldn't be significant.
- This whole area may change in the next two years as a result of New Hampshire suing Massachusetts. It is exactly on point to this issue and who has the "right" to tax remote workers; their home state , where the employees company is or where the benefit is provided.
- Your employer is most likely looking at this from a perspective of also having to file a return in Colorado and does not want to do so. Employers generally want to minimize their "nexus" with other states to avoid having to file in multiple states.
In summary, I believe bullet 3 above should really solve your issue.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
