In a letter to Senate Majority Leader John Thune (R-SD) and Senator Catherine Cortez Masto (D-NV), the American Institute of CPAs commended the leadership of these two Senators on behalf of American businesses and employees through the introduction of the bipartisan Mobile Workforce State Income Tax Simplification Act of 2025.
This bill provides uniformity for nonresident state and local income tax withholding and a reasonable de minimis exception from the assessment of state and local income tax in a jurisdiction in which an employee does not reside.
For more than a decade, the AICPA has strongly advocated for mobile workforce legislation to ease nonresident state income tax withholding and compliance burdens for taxpayers and businesses across the country.
Having a uniform national standard for nonresident state and local income taxation, withholding and filing requirements will simplify and enhance compliance with all of the different state and local tax laws and reduce unnecessary administrative burdens on businesses and their employees.
“In today’s world, the ‘workplace’ as we know it is changing and expanding,” said Melanie Lauridsen, AICPA Vice President of Tax Policy & Advocacy. “More and more employees cross state lines in the course of their job duties, but varying state income tax withholding laws make compliance extremely difficult and time consuming.
“Tax simplification is one of the guiding principles of good tax policy on which the AICPA advocates, and this bill supports that principle by reducing unnecessary administrative burdens on businesses and their employees. We are grateful to Senators Thune and Cortez Masto for their leadership on this issue. We strongly support this legislation and urge other members of Congress to support American taxpayers and businesses by passing this bill.”
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Tags: Accounting
