Which States Are Best for Remote Workers?

Scott Lincicome and Ilana BlumsackRemote work has proliferated as a work arrangement since the COVID-19 pandemic began in 2020. While its popularity has declined since its Spring 2020 peak, remote work remains far more common today than it was before the pandemic (see Figure 1). Research from Nicholas Bloom and othersfound that last month, nearly 13 percent of workers were fully remote, and an additional 28 percent worked in a hybrid arrangement.!function(e,i,n,s){var t= " InfogramEmbeds " ,d=e.getElementsByTagName( " script " )[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement( " script " );o.async=1,o.id=n,o.src= " https://e.infogram.com/js/dist/embed-loader-min.js " ,d.parentNode.insertBefore(o,d)}}(document,0, " infogram-async " );In ourchapter on remote work inEmpowering the New American Worker, we explain how remote work can benefit both workers and employers, and we identify several state policies that make remote work needlessly difficult (especially across state lines). This includes:State income tax filing and withholding requirements that often require workers to file state income taxes ifany income is earned in that state, and tax withholding thresholds that often force employers to withhold state income taxes from employees after just one day of work in ‐​state (see Figure 2).Convenience of the employer rules that base an employee ’s state income tax ob...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs