Trailing Tax Liability

When employees move around they generate trailing tax liabilities for the time spent in a particular jurisdiction. This includes employment taxes and reporting as well as personal tax issues (for example, shares vested while in California will need to pay taxes once a gain is realized).

See also:

• Back office
• Employers of remote workers are unsure they are remitting taxes correctly

Links to this note

• Remote Work Does Not Mean Being a Digital Nomad

  There are misconceptions that companies allowing remote work means you can work move around and work from anywhere. That is not the case. Having employees move around constantly poses several challenges for the company (security, taxes, registration, insurance, HR compliance) and teammates (poor internet connection, timezone issues, focus).