Telecommuting = Nexus
A recent New Jersey case serves as a good reminder that employees who work from home can create nexus for their employer. In Telebright Corp. v. Director, N.J. Super. Ct. (3/3/12), the court held that an out-of-state corporation was subject to tax in New Jersey because it had a full-time employee who worked from her New Jersey residence.
Many employers are unaware of the nexus implications of employees working at their homes. While there aren’t many published cases or rulings on the issue, the vast majority of states would likely reach the same conclusion as the court did in Telebright.
The attorneys of the Pittsburgh-based law firm Williams Coulson routinely deal with state and local tax matters, including nexus issues. Jeffry M. Kessel chairs the firm's state and local tax group and is able to discuss any nexus questions you may have.