Work for a Tampa FL company, but WFH full time in PA (home)

[M109rgirl]

OK, her goes.....i reside and work full time at home in PA, but my company is in FL. I was just hired recently with the agreement that I can work from home full time in PA. Now after working for them for 2 weeks they are saying I either have to move to FL, which is not an option as all my family is in PA, or become a 1099 employee. They say this is due to tax issues with PA......really,,,,,,anyone know what the deal is?

[MortonR]

I'm not a tax person, but having had a family member work for an out of state company both in and out of Florida I would call "bupkis" on this.

Ask the accounting or payroll people for the specific reason, i.e., what law or regulation they are using to force this requirement. It may just be a matter of them not wanting to hassle with collecting PA state income tax.

Are there other employees working remotely?

RM

[HWTechGuy]

Hi there.

I am from PA, moved here two years ago for my job. So, I'll take a stab at it...

Florida has no state income tax, maybe that has something to do with it. PA and NJ (for example) have a reciprocal agreement. I used to work in NJ years ago and have family that currently lives in PA and works in NJ, so I'm familiar with how that works. It's possible that it's just not worth their effort (at least as far as they are concerned) to do what they need to make the PA taxman happy in this case.

My company is based in the Carolinas, but we have people pretty much all over the country. We're all remote employees, except for the folks that work at the various corporate offices. They have everything set up regardless of what state you live in.

Best of luck.

[sportsterjohn]

I have worked remote on and off for the past 10yrs. Never had a company give me grief about being in a different state due to having to collect state income tax.

[Not_liking_FL]

When they make you 1099 what is happening to your benefits? More than likely they're doing this to cut cost. A lot of companies have been going the contractor route these days.

[pifan]

This may be legit. A company has to file taxes for each state where they have an employee. They may need to follow various state specific regulations.

For large companies, this is not an issue as they have presence in many states. But for smaller companies, having only one employee in a state is probably a large expense.

[DUNNDFRNT]

It would depend if they would pay you more because they won't pay you benefits or part of your tax burden, typically contractors that get 1099 make 20% more than salaried employees, having said that your move would be to get an LLC that will allow you to get creative with your taxes you could actually make more money.