Congressman Mike Bishop (MI-08) today introduced his first bill of the 114th Congress with Congressman Hank Johnson (GA-04), titled the Mobile Workforce State Income Tax Simplification Act of 2015. The bipartisan legislation, also led by Senators John Thune and Sherrod Brown, simplifies state income tax requirements for employees who work multiple days per year outside the state of their residence.
"Our state income tax structure is burdensome for everyone involved," said Rep. Bishop. "Dozens of reporting requirements have been imposed on our business community, many of which depend on an employee's length of travel and income. Our aim is to create one common-sense system by eliminating the complicated paperwork and red tape for employees and reducing costs for our businesses."
Like its Senate counterpart, H.R. 2315 provides that an employee's earnings remain subject to full tax in the state of his or her residence. An employee would only be subject to another state's taxes if he or she works there more than 30 days per calendar year.
Currently, many employees are legally required to file an income tax return in every state they travel for work, even if just for a single day. Businesses must also comply with the states' varying withholding requirements for their employees' travel.
"The tax system is already too complicated as it is," Rep. Johnson said. "This important bipartisan legislation simplifies the tax code and would help Americans who work across multiple jurisdictions from being taxed by state and local governments other than the places in which they live or perform duties over an extended period."