The United State Supreme Court Will Not Hear New Hampshire v. Massachusetts Regarding Remote Workers
By John Bonk, National State & Local Tax Leader
As a reaction to the COVID pandemic, Massachusetts changed its law regarding the taxation of remote workers. The state’s new law considers remote work for Massachusetts companies that is performed outside of the state, but which was previously performed in-state, to be Massachusetts-sourced income.
New Hampshire filed suit against Massachusetts with the United States Supreme Court, claiming that taxation of New Hampshire residents working under a remote arrangement was unconstitutional. The Court rejected the case, however, without explanation, allowing the Massachusetts law to continue to stand. It also leaves the door open to future challenges by taxpayers in other jurisdictions with similar laws.
For more information regarding how this may affect your business, please contact your Marcum State and Local Tax professional.