SALT Special Interest Group Meeting

September 8, 2022 @ 10:00am EDT/NY

CPE: 1 Credit

Join Zoom Meeting: https://us06web.zoom.us/j/89008488399?pwd=anZSQWlWbUtDb1VaUGNqZzJLNjBlZz09

Meeting ID: 890 0848 8399

Passcode: 647069

Meeting Agenda

State Throw-back and throw-out rule for services or digital products

• Is your state market based sourcing or performance based sourcing for services?
• How about digital products?
• Does your state have throw-back/out rule for services or digital products?
• If so, how those sales are thrown back? Based on employee/sales person location? Or based on the server location?
• If not, how do you allocate the non-filing state service and/or digital product sales?

Remote employee and hybrid mode employees

• Does your state allow a credit for tax paid to other states on your earned income?
• How does the employer convenience rule apply to your state?
• What happens 2 or more states want to claim the same income? (e.g a NYS employer hired a remote employee from other state)
• Does remote employee create a nexus for income tax in your state?
• Does remote employee create a nexus for sales tax in your state?

State apportionment and allocation rule for market based sourcing state. When to apportion to other states?

e.g. A California service based company, 40% of its revenue is from other states, but it does not have economic nexus in any state.

1. Assume this company only has one office in CA and all employees are in CA, can this company only claim 60% of revenue in CA since CA is market based sourcing for services?
2. If this company opened an office in NY (also market based sourcing) with one employee, how to apportion the non-NY or CA revenue now?