To be clear, the company is still trying to figure things out, but mentioned that switching the role from full-time to contract may be the only option. What is it about Virginia's (or New York's) tax laws that would make it so financially burdensome for a NYC-based company to hire a remote FTE in Virginia?
maybe the idea was that you would move to the NY area and work in the office ??
No, it was always going to be remote. They thought I was in Washington, DC, where apparently the tax laws work more favorably.
you'll have to ask them. but it may have to do with being required to file a Virginia business income tax return as a FTE based there. But I would think they would have to file a DC business income tax return if you were based there. perhaps, as you stated, DC tax laws may be more favorable then Virginia's it could simply be a matter of tax rates,