AICPA advocates for mobile workforce accounting compliance bill
May 15, 2012
The American Institute of CPAs (AICPA) recently urged the House of Representatives to approve accounting legislation
that would establish a national standard for the withholding of state income taxes for nonresident employees. The move was in keeping with the organization's consistent support of the bill since last year, Accounting Today notes.
"The change would make state income tax withholding easier to administer and would help ensure that states and local jurisdictions get the taxes they are owed," AICPA president and CEO Barry Melancon said in a statement
Melancon noted that the passage of the bill would enhance accounting compliance
by enacting a uniform rule for employees who work outside their resident states for a period of more than 30 days. Currently, the way nonresident employees' income taxes are handled is fragmented across states, thanks to a plethora of state income tax withholding laws and varying exemption periods that act as roadblocks to compliance.