The U.S. House of Representatives has passed an MACPA-backed plan to create a national standard to govern the withholding of state income taxes for non-resident employees.
H.R. 2315, also known as the Mobile Workforce State Income Tax Simplification Act of 2015, passed the House by voice vote on Sept. 21.
According to the American Institute of CPAs, the bill includes several key components designed to alleviate the burden the current state income tax withholding system places on traveling employees and their employers. For most states, the legislation contains little or no revenue impact.
“This bipartisan legislation would enhance compliance with state personal income tax laws,” said MACPA President and CEO Tom Hood. “It would greatly simplify the onerous burdens placed on employees who travel outside of their resident states for temporary periods and on employers who have corresponding withholding and reporting requirements.”
The bill includes a number of impactful provisions:
U.S. Reps. Mike Bishop (R-MI) and Hank Johnson (D-GA) sponsored the bill and spearheaded the measure’s passage. Co-sponsors from Maryland are Reps. John Delaney and C.A. “Dutch” Ruppersberger.
The MACPA has supported the measure on a number of fronts:
The bill now moves to the Senate, where its companion bill — sponsored by Sens. John Thune (R-SD) and Sherrod Brown (D-OH) — has 51 co-sponsors.