nexus question


M

Matt

I am currently employed by an Internet company that sells item on the
web. They are based in Washington, and I work in Michigan. However, I
am looking to move to Ohio soon with my fiance, and have approached my
company about working remotely from home there. My company is concerned

about having to pay taxes for Ohio since they will have
me located there (nexus) ... they do not want to do it.
Is there any way that they can continue to employ me in Ohio, and not
have to pay the Ohio taxes? Can they hire me on as a consultant
instead, or can I say I'm based out of Michigan still and work out of
Ohio?

Any help would be greatly appreciated!!

thank you.

-Matt
 
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J

Jim Kingdon

Is there any way that they can continue to employ me in Ohio, and not
have to pay the Ohio taxes? Can they hire me on as a consultant
instead, or can I say I'm based out of Michigan still and work out of
Ohio?
Consultant might be possible (although there is a rather
complicated/vague set of rules about distinguishing when one is an
employee versus a contractor).

The other arrangement is that they can pay a consulting firm (e.g. a
temp agency), and you can be an employee of that firm. This might
work out well, especially if you prefer to have a standard benefits
package rather than trying to do things like buy health insurance on
your own. How satisfied you are is likely to depend on finding a
consulting firm which you get along with and which charges what you
consider to be a fair cut for their role as middleperson.

As for the nexus rules, I can see why they'd be worried. It doesn't
just concern taxes related to your employment, but charging sales tax
to every one of their Ohio customers. I'm not really up on what is
required to establish a nexus, but this has been an active area of the
law (especially driven by internet businesses, as this has really
increased the magnitude of the issue over the old days of mail-order
via paper catalogs).
 

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