Colorado Worksheet - Telecommuting

State:
Multi-State
Control #:
US-04022BG
Format:
Word; 
Rich Text
Instant download

Description

Telecommuting is a cooperative agreement between an employee and the State involving work that an employee performs on a routine basis, independent of others, and can be accomplished by the employee outside of the office environment. Anticipated benefits may include:


" Trip Reduction;

" Energy Conservation;

" Better Employee Morale;

" Increased Productivity; and

" Increased Employee Retention.


This worksheet should be completed before setting up your employees' office space. The success of the telecommuting arrangement depends on the assessment of the work space and the ability of the employees to successfully complete the required work in this environment.

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FAQ

Any employer who employs at least one person in Colorado is covered by the statute. Therefore, even though remote jobs can be performed anywhere, some companies advertising for such positions have indicated they will not consider applicants living in Colorado.

For example, teleworking employees must be able to take telephone calls and participate in online video meetings with minimal distraction and while maintaining appropriate confidentiality.

100% of wages earned while working remotely in Colorado should be reported as taxable wages in both California and Colorado. Colorado income tax withholding should be withheld on Colorado wages.

The self-employed do not qualify as telecommuters because they lack employee status.

Businesses such as Nike and Oracle are happy to let you work from homejust not in Colorado. Some remote workers would do anything to burn their sweatpants and get back to cubicle life.

Employees' state of residence and the state where they work affect which state and local taxes they pay. Sometimes, if employees live in one state but have been working in another, they'll receive a credit on their resident tax return to offset the nonresident state tax liability.

In general, if you're working remotely you'll only have to file and pay income taxes in the state where you live.

A person who lives and works remotely in Washington, for example, can perform work for a company that is based in California without having to pay California state taxes. However, remote workers who travel to other states and work from there may have to file a nonresident state tax return.

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Colorado Worksheet - Telecommuting