Working for New York company remotely in Mississippi

[aes421]

I am considering accepting a job that is located in New York.  I currently live in Mississippi and would continue to do so permanently (not COVID related).

I'm wondering if I will have to pay both state income tax in NY and MS?  I read New York specifically has something called the Convenience rule for telework, but I'm having trouble understanding.

My spouse will live and work in MS and pay MS income tax.  We would not need to pay NY income tax on his salary even if I have to file in NY, correct?


Thank you in advance

[Padonak]

Following

[Uturn]

When I lived in TX, I worked for a company based out of NE and another based out of NC.  Neither time were my taxes any different than a TX based company.

[robartsd]

I am considering accepting a job that is located in New York.  I currently live in Mississippi and would continue to do so permanently (not COVID related).

Although the company you would be working for is in NY, the job would not be. If the company is happy to hire you in MS and handle you as a MS employee, you would have nothing to worry about. I don't believe there is a legal construct to make you an employee in NY if you ordinarily do your work outside of NY. Perhaps the company has not thought much about this if they've never hired out-of-state remote workers before. If you would be a contractor, then you will be opperating a business in MS that has a nexus in NY; you would need to be aware of and compliant with business laws in both states.

[MDM]

I'm wondering if I will have to pay both state income tax in NY and MS?  I read New York specifically has something called the Convenience rule for telework, but I'm having trouble understanding.

My spouse will live and work in MS and pay MS income tax.  We would not need to pay NY income tax on his salary even if I have to file in NY, correct?

Correct on the last question.

See convenience of the employer - Google Search for articles on that topic.  Seems a particularly nasty bit of taxation, but that may be a matter of taste.  In short, if you could do the job for that employer in NY, then NY may tax you as if you did the job in NY.

Might be worth asking the employer whether they will be withholding NY tax or not - if it has a competent tax department, this issue should familiar to them.

[bacchi]

I'm wondering if I will have to pay both state income tax in NY and MS?  I read New York specifically has something called the Convenience rule for telework, but I'm having trouble understanding.

My spouse will live and work in MS and pay MS income tax.  We would not need to pay NY income tax on his salary even if I have to file in NY, correct?

Correct on the last question.

See convenience of the employer - Google Search for articles on that topic.  Seems a particularly nasty bit of taxation, but that may be a matter of taste.  In short, if you could do the job for that employer in NY, then NY may tax you as if you did the job in NY.

Might be worth asking the employer whether they will be withholding NY tax or not - if it has a competent tax department, this issue should familiar to them.

That seems completely unenforceable if the onus is on the non-resident employee.

[MDM]

I'm wondering if I will have to pay both state income tax in NY and MS?  I read New York specifically has something called the Convenience rule for telework, but I'm having trouble understanding.

My spouse will live and work in MS and pay MS income tax.  We would not need to pay NY income tax on his salary even if I have to file in NY, correct?

Correct on the last question.

See convenience of the employer - Google Search for articles on that topic.  Seems a particularly nasty bit of taxation, but that may be a matter of taste.  In short, if you could do the job for that employer in NY, then NY may tax you as if you did the job in NY.

Might be worth asking the employer whether they will be withholding NY tax or not - if it has a competent tax department, this issue should familiar to them.

That seems completely unenforceable if the onus is on the non-resident employee.

NY state could ask the NY employer for a list of all out-of-state employees working there "for the convenience of the employer."  E.g., so the employer doesn't have to build or rent office space.  Again, it seems particularly nasty and "not fair" but apparently courts have agreed that it is the law....

[robartsd]

That seems completely unenforceable if the onus is on the non-resident employee.

The non-resident employee has their taxes withheld by the in-state employer. In most cases the withholding tables exceed the actual tax liability, so come time to file, the employee files for their refund.