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The AICPA presents the Journal of Accountancy podcast. Where we talk about the key issues facing the accounting profession.

Feb 18, 2021

Earlier in February, numerous amendments to the 2021 fiscal year budget resolution were voted on by the Senate. One of those nonbinding amendments, which passed unanimously by a voice vote, could lead to a lessening of an administrative burden for many employers and employees.

The amendment related to mobile workforce legislation, introduced by Sen. John Thune, R-S.D., and supported by Sen. Sherrod Brown, D-Ohio, would extend the de minimis threshold to work in a state as a nonresident before owing state income taxes or being subject to withholding.

It also would provide that during the pandemic, employers could withhold as they did prior to the pandemic or provide flexibility for employers to track where remote work is performed. It also would provide that employers would not have a nexus or apportionment impact by having a remote worker in a nonresident state during the pandemic.

The AICPA has long supported and continues to support mobile workforce legislative proposals. The AICPA submitted comments in support of the bill on numerous occasions and issued a Feb. 8 press release on the passage of the Senate budget resolution amendment on mobile workforce legislation. For more on the development of mobile workforce legislation, see Yesnowitz, Sherr, and Bell-Jacobs, “AICPA Focuses Advocacy Efforts on Mobile Workforce Legislation,” in The Tax Adviser.

What you’ll learn from this episode:

  • Background on the AICPA’s interest in mobile workforce tax legislation from Eileen Sherr, CPA, CGMA, director of the AICPA Tax Policy & Advocacy team.
  • Why the legislation could be significant.
  • FASB’s recent response to a pandemic-related accounting concern.
  • Several highlights from the JofA’s February print issue, including more on tax penalty relief and Excel’s Ideas feature.