U.S. businesses may face a tax-compliance risk because some employees aren’t reporting that they’re working outside their home state or country, a survey shows.
Organizations with such workers may therefore not be withholding payroll taxes appropriately, San Francisco-based employment platform Topia found in its survey.
Of those polled, about 28 percent of employees had worked outside of their home state or country, while only a third had reported it to their human-resources department.
The survey found a general enthusiasm for remote work during the pandemic. Still, some employees may forget to report that they are working out of state or country and others may hide their location to avoid cost-of-living decreases to their salaries, it added.
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