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At EY, our purpose is building a better working world. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets.
EY remote working solutions can help you navigate the unique demands, requirements and risks of a remote workforce.
Benefits for our clients
Mitigate risks and exposures, including reputational risk
Report accurate tax obligations
Manage administrative costs
Provide technology solutions
Benefits for their employees
Advances financial wellness
Provides compliance assistance, e.g. W-2c
Makes filing simple, fast & reliable
Is your organization maximizing the benefits while managing the risks?
More people are working from home, vacation homes or alternative locations outside their usual work location
Working in a state or country different from usual work location can result in unexpected tax consequences.
Corporations have a fiduciary responsibility to ensure accurate tax reporting for the company and for employees yet many corporations don’t have a policy in place to address remote work
Employers are liable for under-withheld employment taxes, plus interest and potential penalties. Additionally, officers may be held personally liable for any taxes the employer does not remit based on fiduciary responsibility.
Employers are required to track where employees are performing services, determine the appropriate tax jurisdiction and withhold accordingly.
Employees may have a legal obligation to inform their employer of work location changes, depending upon state law (i.e., New York)
Do you have the systems capabilities and team in place to monitor, track and comply with remote worker taxation?
Tax laws are have been evolving to address the these new ways of working
Other employment taxes may follow where employees perform services, such as unemployment taxes and paid family leave taxes.
Many traps exist for the unwary — dual residency, convenience of the employer, nonresident credits.
Taxing authorities are aggressively addressing these compliance issues due to significant budget deficits
How EY can help
Assessment
Assess remote work compliance capabilities:
Employee workforce locations (temporary vs. permanent) and compliance
Filing obligations based on state, local and global compliance status
Internal system capabilities to handle accurate reporting
Current office locations and return to work office locations
Identify corporate risk
Perform corporate risk gap analysis:
Nexus/Permanent Establishment study (where each entity should be filing)
Identify state and international treatment of remote workers
Ability to track and monitor employee work location
Identify employee risk
Perform employee risk gap analysis:
Incorrect state filing due to remote work
Claim correct stimulus rebate
Incorrect 1099 reporting of unemployment compensation