Living in Florida for a Delaware corporation

[RonaldR]

I am planning to move to Florida and my business currently has an office in NYC, but we are incorporated in Delaware. Right now, I only pay taxes to the city and state of NY, because that's where I live currently. Will my taxes in Florida remain the same once I move or will I be paying taxes to two different states? 

[rjs]

Are you an employee (you get a W-2) or a contractor (you get a 1099-NEC), or are you an owner or partner of the business? If you are an owner or partner, what is the business structure? Is it a partnership, S corp, C corp, multi-member LLC, or something else?

[RonaldR]

I'm an employee, W2.

[rjs]

Florida has no personal income tax, so you will not pay tax to Florida.

New York has a "convenience" rule. What that means is that if you are telecommuting to the New York office (i.e. working remotely) because you want to live in Florida, you are still considered a New York employee. You are working in Florida for your own convenience. Your employer will continue to withhold New York state tax (but not city). You will have to file a New York nonresident tax return and pay New York state tax (but not city tax). However, if you are working in Florida because your employer wants to have an employee in Florida for business reasons, then you are there for the employer's convenience. You would be considered a Florida employee, and you would not pay any New York tax.

It doesn't matter where the business is incorporated.

[RonaldR]

I guess what's confusing to me is I know of some employees who moved from NYC to another state, and they are not paying NY taxes on their checks. This is true for both people who moved from NYC and people who never lived there to begin with who were hired during the pandemic. I'm assuming this is normal and they are expected to report this while filing? I don't think they are doing that when filing. 

[rjs]

I told you what the rules are. Not everyone follows the rules. New York's policy is controversial, but it's the policy. It's normal for New York, but not for most states. Only a small number of other states have a "convenience of the employer" rule.

Also, you probably don't know all the details of other people's employment and tax situations. There could be factors that you are not aware of.