What does Preamble of Mobile Workforce State Income Tax Simplification Act of 2025 do?

This bill, formally titled 'To limit the authority of States to tax certain income of employees for employment duties performed in other States,' aims to restrict states' ability to tax employee income related to work done in other states. The bill was introduced in the Senate on April 10, 2025.

What does SHORT TITLE. of Mobile Workforce State Income Tax Simplification Act of 2025 do?

This bill is formally titled the Mobile Workforce State Income Tax Simplification Act of 2025.

What does LIMITATIONS ON STATE WITHHOLDING AND TAXATION OF EMPLOYEE of Mobile Workforce State Income Tax Simplification Act of 2025 do?

This section limits state income tax withholding and taxation of employee income when an employee performs duties in multiple states. An employee's wages are generally subject to income tax only in their state of residence and in any state where they perform employment duties for more than 30 days during the calendar year. Employers may rely on an employee's determination of expected time spent in different states, unless there is evidence of fraud or collusion. If an employer uses a time and attendance system, that system's data can override the employee's determination of work location. The definition of 'employee' is determined by the state where employment duties are performed, with exceptions for professional athletes, entertainers, qualified production employees, and certain public figures. A 'time and attendance system' requires employees to record their work location daily for work outside their primary state of employment.

What does EFFECTIVE DATE; APPLICABILITY. of Mobile Workforce State Income Tax Simplification Act of 2025 do?

This Act will become effective on January 1 of the second calendar year following its enactment. The Act does not apply to any tax obligation that arose before its effective date.

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Mobile Workforce State Income Tax Simplification Act of 2025

Last updated: 4/10/2025 · Introduced: 4/10/2025

Author: John Thune (R-SD)

TL;DR (AI)

This bill restricts states' ability to tax employee income based on where work is performed, generally limiting taxation to the employee's state of residence and states where they work more than 30 days during the year.
Employers can rely on an employee's expected work location, or data from a time and attendance system, to determine income tax withholding.
The Act will take effect on January 1 of the second calendar year following enactment and will not apply to existing tax obligations.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 2 more.

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