Remote worker state income tax implications

This message applies to newly hired Cornell employees working outside New York State (NYS), as well as employees who continue working remotely from home outside NYS due to the ongoing COVID-19 pandemic, whether from home or in an office, temporarily or permanently, on a part-time or full-time basis.

NYS income tax withholding laws have not changed due to COVID-19, and, as a result, employees who live outside of NYS and have been taxed in NYS as their primary work state will continue to be subject to NYS withholding requirements, whether or not they are now working remotely outside NYS.

Under New York’s convenience of the employer rule (PDF), Cornell is required to withhold NYS income tax from all wages paid to employees working from home outside of the state for the employee’s convenience.

Remote work is excluded from the NYS withholding requirement only if the employee is required to work from home in a location outside NY as a condition of employment for Cornell’s convenience, and the employee has completed the NYS Remote Worker Checklist.

Since state income tax laws can vary by state, if you are working remotely outside NYS or relocate to another state, even temporarily, consult a tax advisor to determine additional state or local tax liability for days worked in that location.

If you need to update your tax withholding options or add a state for additional withholding, you can do so in Workday. Instructions are available on the Tax Withholdings and Forms page.