Any telecommuting fpDevelopers watching this?

[GCC Consulting]

> -----Original Message-----
> From: filepro-list-bounces at lists.celestial.com 
> [mailto:filepro-list-bounces at lists.celestial.com] On Behalf 
> Of Walter Vaughan
> Sent: Wednesday, March 30, 2005 7:21 AM
> To: filepro-list at lists.celestial.com
> Subject: Any telecommuting fpDevelopers watching this?
> 
> Seems the state of New York thinks that it has nexis[0] if 
> you remotely perform work  for a company located in NY. While 
> at first glance this is a reasonable request of the state, 
> it's probably apply to independent contractors soon.
> 
> http://yro.slashdot.org/yro/05/03/29/2347245.shtml?tid=98&tid=
> 123&tid=103&tid=17
> 
> --
> Walter
> [0] nexus in this case means the ability of the state of NY 
> to tax you as a resident without the benefits of a resident 
> like voting.
> _______________________________________________
> Filepro-list mailing list
> Filepro-list at lists.celestial.com
> http://mailman.celestial.com/mailman/listinfo/filepro-list

What you may not be aware of is that business that maintain offices in other
states are already taxed on that portion of their income which is earned in that
state.

I had a client who had offices in NY and Ca.  At the end of each fiscal year,
they ran a report which broke out sales in Calif.

What the ruling above states, is that they want to tax an employee's 100% income
which is derived from working in NY.  

As for contractors, consultants etc, the taxation, if applied, would only be on
that portion of their income derived while working in NY or in this case, if the
telecommute, what they do while "connected".

By the way, paying sales tax on items brought in to the state from other locals
has always been on the books.  It is difficult to apply.  One could always claim
that the items purchased were gifts.  Also, since what ever was purchased, if it
has been used, can be claimed a used merchandise which would be subject to a
lower tax.  By the way, the state doesn't call this a sales tax, it is "a USE
tax".

As an aside, if you purchase a bottle of wine in DC, leave it unopened, and
drive with it to New York on interstate 95, you are supposed to pay taxes in Va,
Md, Del, NJ and NY.  At least that's what I have been told.

Richard Kreiss
GCC Consulting