Mike Bishop’s Mobile Workforce Bill Passes U.S. House

by MICPA/AICPA | Oct 04, 2016   ()
The U.S. House of Representatives passed H.R. 2315, the Mobile Workforce State Income Tax Simplification Act of 2015, on September 21. The bill was introduced by Representative Mike Bishop of Michigan’s 8th District in May 2015.

The Michigan Association of CPAs (MICPA) is a strong supporter of the bill and has long fought for its enactment into law as an equitable solution to the myriad of state income tax withholding laws, and varying de minimis exemption periods, that make compliance extremely difficult and time consuming for employers and their employees.

H.R. 2315 would require that an employee’s earnings would be subject to state income tax and withholding when the employee performs work in a state for more than 30 days during the calendar year. Having a uniform national standard would significantly simplify compliance with all of the different state laws.

“As an attorney and business owner,” Rep. Bishop said on the House floor during debate on the bill, “I have seen firsthand how complicated all these different state income tax laws are for those who travel and work. These burdens affect small businesses in particular, as well as their employees, because they simply do not have the resources to comply with all the varying state income tax requirements that exist today.”

The bill now moves to the Senate, where its companion bill—sponsored by Senators John Thune (R-SD) and Sherrod Brown (D-OH)—has 46 cosponsors.

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