If I am living in New Hampshire and working remotely for a Massachusetts company, then how would MA have any knowledge of who I am and how much I owe in taxes?
ANSWER: Because my employer is located in Massachusetts and processes the payroll there.
These employers could get around this problem very easily by establishing a minimal corporate presence in New Hampshire and paying these employees through that separate entity.
Smart. It might come to that. Or the SCOTUS can grown a brain and reinforce the idea that, in America, there is no taxation without representation.
Or, just move their corporate presence outside of Massachusetts.
They could move it to a tax freindly state such as Nevada, Texas, or Florida, or even off shore.
No reason to subject your employees who work online to more taxes than necessary.
You don’t even have to do that. There are payroll companies that will handle the employee compensation package start to finish. Client-company pays them, they pay your employee.
Had a deal like that when I worked briefly for a casino gaming company.
With so many of us moving out of Hellinois, my employer simply told us to move to a state where we already have a presence in for tax purposes. Most are moving to Florida, Arizona or Texas where we have a presence.
Hellinois is fooked. We’re one of the larger employers in Hellinois too.