Topia

San Francisco’s Gross Receipts Tax is a tax imposed on gross receipts, meaning you don’t have to be a profitable business to pay the tax. From the SF Treasury website, “Gross receipts means the total amounts received or accrued by a person from whatever source derived, including, but not limited to, amounts derived from sales, services, dealings in property, interest, rent, royalties, dividends, licensing fees, other fees, commissions and distributed amounts from other business entities. The percentage of payroll in San Francisco or compensation for services performed by employees in SF helps determine the entirety or a part of the gross receipts allocated to SF and then taxed via the GRT. If you take the components of the SF GRT ($200M gross receipts, 50% payroll in SF, and the relevant GRT rate), the current GRT and Payroll tax will come out to approximately $1M.

According to a Global Guide to Remote Working published by DLA Piper, the key risks for employees working abroad include, but are not limited, to: payroll tax risks, permanent establishment tax, Organisations attempting to manually manage compliance risks from mobile and distributed workforces are relying on employees to self-report accurate travel schedules. Manual nature of self-reporting travel: Reliance on employees to self-report accurate travel activities takes time away from other activities and opens the process up to errors. With a purpose-built solution for managing the compliance of distributed and mobile workforces, organisations have the right tools to tackle: • tax and regulatory compliance issues associated with a distributed workforce • challenges associated with country by country reporting Going live with a technology solution can happen in as little as a few weeks.

However, it looks like employees will want the flexibility and options to work both in an office and at home at first glance. Whether an employee has enthusiastically or begrudgingly embraced working from home, the ability to work from anywhere is one that offers a lot of benefits and opportunities, but also some potential complications from a compliance perspective. According to this Twitter poll, almost half of the respondents work in the same city/location as their office, nearly 100% of the time. To effectively take advantage of the “work from anywhere” new world of work, organizations need new tools to monitor their global employee footprint and manage compliance risk.

See how working from home—outside of NYC—can save thousands in unincorporated business tax with Topia’s online calculator. To see the potential tax savings on Topia’s online calculator, slide the percentage of days worked outside of NYC to, say, 24%. How can a non-corporate NYC entity find the percentage of employee work days out of the city, with so many people working from home these days? Whether each individual is working in the office, in an NYC residence, WFH outside of the city, or on a business trip, Compass pinpoints and records that work day location.