RUNNING
corner
(continued from page 3)
capacity). In fact, you should start training this point per-
son early – preferably as soon as you start preparing for
your move.
Train Early. It is critical to get the processes cemented
and confidence built up before you physically exit the
business and transition to working remotely.
Put In The Face Time. Weekly check-in meetings are a
great idea and instead of paying regular travel expenses,
consider utilizing video conferencing. “Face time” can
have several benefits – your staff needs to know that you
are still present and actively engaged in the business.
It’s also important to set clear and specific expectations
with regard to this communication, including establishing
a regular day and time to conduct these meetings.
• Determine where you will file payroll. We often see cli-
ents who source payroll to Ohio with employees who
live and work out of state.
• “Special” rules are the norm, not the exception. Ohio
has a rule that even if you work exclusively from an-
other state, you have to pay Ohio tax on a portion of
your wage if you own a certain percentage of your
business.
Want to run your business remotely? Weigh your
options carefully, get the right advisors and consider the
three T’s. Send us a message to learn more.
Taxes
As you can imagine, working remotely comes with a lot
of state and local tax considerations. This type of ar-
rangement will undoubtedly result in an increased level
of nexus and filing requirements. Be sure to comply with
state laws and understand how different tax responsibili-
ties will affect your bottom line.
Tricky tax provisions impact a mobile workforce. If you
don’t follow tax rules, you could face fines and penalties,
and your business could be left with no legal recourse.
Keep the following facts in mind:
By Lesley Mast, CPA, MAcc-Taxation,
principal & director of tax services,
[email protected] (Wooster office)
Brian Garland, CPA, supervisor,
[email protected] (Dublin office)
Joe Popp, JD, LLM, director of SALT services,
[email protected] (Dublin office)
• When you move to a new state and direct your busi-
ness from there (or hire a mobile worker in another
state), you create a filing requirement in that new state.
• Each state is different and has various types of taxes
to consider, such as use, sales, income-based, capital-
based, gross receipt and municipal.
• Usually you need to register with a state for authority to
do business there if you or an employee lives or works
in the state.
the three T’s – technology, trust and taxes
14