What's with the New York taxing at the "convenience of the employer?"

New Yorkers are jerks.

Or... that’s the stereotype, anyway. I don’t think it’s true. 

In May of 1998, the Seinfeld finale ended with the protagonists being convicted of "criminal indifference." Proof that even New York sees itself as full of self-centered jerks.

It’s more like a self-centeredness. So much important stuff happens in New York, done by New Yorkers, that why should they even have to look outside of their borders?

Which is why the New York “convenience of the employer” rule is so on-brand.

Here’s how it works: 

If you work remotely for a company based in New York but you live and work outside of New York, then you pay taxes as if you're a New Yorker. 

Even if you work in New Jersey.

Or New Mexico.

Or Mexico.

Unless you work in an out-of-state office established by the NY employer,

or your work requires you to be elsewhere,

you’re a New Yorker.

Even if you never go to the New York office.

The way the state sees it, you COULD work in New York, if you wanted to. 

And why would you not want to work in New York? You crazy jabroni? The company, in its infinite grace, has granted you the opportunity to not travel in from Louisville or Los Angeles every day. 

But, 

no matter what crazy ideas you get into your head, 

from 9 to 5, 

you are a New Yorker.

Luckily, the person who lives out of state doesn’t get double-taxed.

For example, if your New York tax rate is 6% and the Connecticut tax rate is 6%, remote workers in Connecticut don’t pay 12% in state taxes. Instead, they would just pay the 6% in New York and Connecticut gets shafted.

Which is kind of messed up when you think about it. Because communities that neighbor New York need to make up that income in other ways, 

through things like property tax, 

sales tax, 

bake sales... 

Kind of gives the expression “If you can make it here you can make it anywhere” a different ring, doesn’t it?

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👋 I’m Claire. I sit in California, a state with its own reputation for chauvinism. But California is a kind and benevolent patron. We foist things like fairness and workers' rights out of state. 

Which is just another reason why California is better than New York.

Do you work in New York (or "work in New York") and need help managing your payroll compliance. I bet we can help. Grab a Back Office Hours session or get in touch.

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