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KA94
New Member

Question about moving while working remotely

Hi everyone.

 

I plan on moving from Florida to Oklahoma within the next month. I'm currently working (in Florida) remotely for a company that is based out of Virginia. I would love to continue working in this remote job in Oklahoma, however the company is only licensed to work for tax purposes in the following states: FL, GA, VA, NC, NH, SC, TX, TN, UT, PA. 

 

Is there any way I can continue working remotely for this company while also living in Oklahoma even though they are not licensed to work in that state? How would this work come tax time? Is there any way I can continue working from Florida for this company while residing in Oklahoma?

 

Thank you all for your time and your help!

4 Replies
DanPaul02
Level 7

Question about moving while working remotely

If you are in Oklahoma and continue working for a company that is not licensed to work in Oklahoma, nothing may happen to you, but the company could face heavy fines once it is discovered that they had someone working for a state where they are not permitted to conduct business.  The company will probably discharge you once it is discovered, but they will be liable for the work done in Oklahoma, not you


rjs
Level 15
Level 15

Question about moving while working remotely


@KA94 wrote:

Is there any way I can continue working from Florida for this company while residing in Oklahoma?


If you are working in Oklahoma, you are working in Oklahoma. You can't pretend that you are working in Florida.


You have to pay Oklahoma income tax on any money you earn while you are living or working in Oklahoma, even if the employer is not a legitimate Oklahoma employer.

 

TomD8
Level 15

Question about moving while working remotely

The fact that your employer is not licensed to do business in Oklahoma is an issue for your employer more than for you.  So I suggest that your first step should be to talk to your employer's HR or legal department and ask whether or not they would permit you to work remotely from OK.

 

The issue is that having an employee in OK might create "nexus" in OK for the company, and subject it to the tax laws of Oklahoma, both state and local.

 

I suspect that this would not be a problem if you were paid as an independent contractor, rather than an employee, but I'm not sure.

 

@rjs is totally correct that any income you personally have from working in an Oklahoma location is fully taxable by Oklahoma.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Hal_Al
Level 15

Question about moving while working remotely

You  have a legal question (more for your company than you), not a tax question. It may depend on the nature of your work is nature of your work. If you're only doing office work from home and not calling on local customers or manufacturing something, your company doesn't usually need to be licensed in that state.  But, then there's that "nexus" thing. 

 

I'm not sure what the statement " the company is only licensed to work for tax purposes" means.  If it only means they won't be able to withhold OK state tax from your pay; that's not important.  You just have to make estimated tax payments to OK on your own. 

 

As others suggessted, start by discussing it with your employer. 

 

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