@TomD8 As a telecommuter who has fought and lost against NY and owed interest and penalties and KNOW FOR A FACT my employer fought tooth and nail and got audited for telecommuters. you can continue to argue as I did for multiple years with CPA partners from major NYC firms THE BIG 4. NY DEFINITIONS MATTER as to what is performed in NY! NY says telecommuting is PERFORMED in NY.
FIRMS started opening offices in NJ just to get around this and NY is currently going after that saying the purpose of the office was to circumvent NY laws.
AGAIN. NY claims any work you do for a NY located company is DONE IN NY unless there is a meeting of the rules. so every point you make says performed in NY would include telecommuting unless you have a bonafide office that meets the rules.
I'm not responding any longer but, I promise this cost me hundreds of hours and thousands of dollars and I worked side by side with Big 4 partners and the top legal firm in NYC drafting letters to NY. NY says telecommuting by their definitions is PERFORMED IN NY so every argument fails unless you meet the rules. Note office in the home is no longer deductible and was one of our arguments, along with own phone number, own address, own office, met clients at home, not an officer, had no specific desk in NY, had not been in NY at all.... clients were all non-NY but, was paid by a NY OFFICE, and note our company had offices worldwide!
The only time your points matter is a person working for another NON-NY office of a company. Even this person who even visits NY for a few days to meet a client, they still have NY source income. Yet they are not NY employees so nonresidents with allocations but still owe NY. In this case the person WORKS FOR A NY only company, there is NO other offices they are assigned to. Assigned to a NY office, everything regardless of location, is considered performed in NY.
I suggest OP speak to a licensed CPA and their employer. NY audits every major company payroll now specifically for this.
While most states apply a “physical presence” test, New York applies a “convenience of the employer test.” In other words, in New York the income must be earned by work performed out of New York State for the necessity of the employer, rather than out of convenience.
Congress has been trying to do something about the problem. The Multi-State Worker Tax Fairness Act aims to abolish the “convenience of the employer” test and force all states to rely on the “physical presence” of the employee. It most recently died in 2014 but apparently was reintroduced in 2016. According to the AmericanPayroll.org article, New York state opposed the legislation. That’s hardly surprising since they’ll see a loss in taxes.
https://ttlc.intuit.com/turbotax-support/en-us/help-article/income/remote-income-taxable-new-york-st...
https://www.cpajournal.com/2023/08/16/an-inconvenient-truth-about-remote-work-2/
https://www.nysscpa.org/most-popular-content/after-the-move-part-ii-new-york-state-s-income-sourcing...
https://www.ncsl.org/fiscal/state-and-local-tax-considerations-of-remote-work-arrangements
https://news.bloombergtax.com/daily-tax-report-state/new-yorks-remote-work-tax-under-attack-from-clo...
https://www.jdsupra.com/legalnews/covid-and-new-york-s-convenience-rule-1813281/
https://www.taxpolicycenter.org/taxvox/taxing-remote-workers-convenience-conflict-and-courts
https://taxnews.ey.com/news/2023-2041-new-york-alj-rules-states-convenience-of-the-employer-rule-app...
https://www.grantthornton.com/insights/alerts/tax/2024/salt/k-o/ny-nonresidents-pandemic-remote-work...
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