Remote work ID/PA

Forum|Forum|4 years ago
February 11, 2022
5 replies
45 views

I live in ID 100% of the time, however I work 100% remote. I used to live in PA, and had a home office there at my brother's house. My company allowed me to move, however they do not have payroll processing in ID, so I am still listed as Remote (home office PA) at that address although I am never physically there. My employer deducts PA state and locality taxes. ID taxes all my income as a resident. PA only taxes PA-source income or income earned while a resident of PA. I dont think either of those apply?

Not A Product Question

Best answer by Vanessa A

As long as you are working remotely because that is how the company has it set up for their convenience and it is not just a convenience for you, then no, PA will not tax this income.

However, since your employer is continuing to withhold PA taxes, you will need to file a PA Non-Resident return to get a refund of taxes withheld and an ID Resident return. You will need to pay the ID taxes with your return, since you did not have any withheld.

Vanessa AAnswer

Level 15

As long as you are working remotely because that is how the company has it set up for their convenience and it is not just a convenience for you, then no, PA will not tax this income.

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imirkinAuthor

Level 2

Can you explain the convenience thing? I am working remote as a convenience for me, it was my decision to go remote and they allowed it. However the setup where my home office is PA is a convenience for them as they do not do payroll processing in ID.

Vanessa A

Level 15

PA has a Convenience of the employer law which states that if you are working from home for your own convenience from another state, that PA will tax your income as PA source income. Since you were working at your home office because that is what they required prior to moving to ID, it sounds like this does not apply to you.

Working remotely is basically working from home or a location that your employer is not providing (they are not providing an office for you to work in), the state you are working from does not determine whether or not it is for your convenience or their convenience.

If you would have been going into the office that they provided to work prior to moving, then they agreed to allow you to work remotely instead of coming into the office, then this would be for your convenience.

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