job offer revoked because of taxes

[NETRANGERCDA]

I live in Chicago, IL and was offered a position with a company based in Wisconsin. The job offer was revoked because they said my employment would bring them into the Illinois tax nexus. Do I have any legal recourse?

 

[Proserpina]

I live in Chicago, IL and was offered a position with a company based in Wisconsin. The job offer was revoked because they said my employment would bring them into the Illinois tax nexus. Do I have any legal recourse?

What are your damages?

 

[TigerD]

I live in Chicago, IL and was offered a position with a company based in Wisconsin. The job offer was revoked because they said my employment would bring them into the Illinois tax nexus. Do I have any legal recourse?

You can move.

DC

 

[ecmst12]

That is a perfectly legal reason to not hire someone.

 

[davew128]

That is a perfectly legal reason to not hire someone.

No its not. but unless the work was going to be performed in IL, the explanation is bogus. Employees create tax nexus based on where the work is performed not where they live. Given the proximity of Chicago to WI, it's not unreasonable to have employees who live across state lines and work in WI.

 

[ecmst12]

Really? What law would it violate?

 

[Proserpina]

No its not. but unless the work was going to be performed in IL, the explanation is bogus. Employees create tax nexus based on where the work is performed not where they live. Given the proximity of Chicago to WI, it's not unreasonable to have employees who live across state lines and work in WI.

It's not a valid reason?

Why is that?

 

[ecmst12]

I didn't say it was VALID, just LEGAL.

 

[NETRANGERCDA]

The position is 50% travel to the west coast. 25% of the time I would be working from the office in Wisconsin. 25% of the time I would work from home.

 

[TigerD]

The position is 50% travel to the west coast. 25% of the time I would be working from the office in Wisconsin. 25% of the time I would work from home.

There's your problem.

DC

 

[cbg]

Setting up a nexus in a new state is a lot more complex for an employer than it may sound. I know, I've had to do it a few times. Regardless of whether certain parties think it "bogus" or not, it is legal. And based on your description, I do not agree that it is bogus.

 

[justalayman]

No its not. but unless the work was going to be performed in IL, the explanation is bogus. Employees create tax nexus based on where the work is performed not where they live. Given the proximity of Chicago to WI, it's not unreasonable to have employees who live across state lines and work in WI.

It appears that Wisconsin and Illinois have an agreement where Wisconsin does not tax an employees income if that employee lives in Illinois. You can rest assured Illinois taxes it. Unless there is a requirement the Wisconsin employer withhold Illinois taxes is the only reason this reason for refusing to employ the OP would make sense. Anybody know that offhand? Otherwise the employer simply would not withhold any state taxes and it would be up to the employee to pay their taxes to their home state as Illinois requires.



Even with that, it still is not illegal to refuse to hire a person because they live in Illinois.

 

[davew128]

Even with that, it still is not illegal to refuse to hire a person because they live in Illinois.

I specifically refused to hire someone TWICE because he was from Chicago. Unfortunately a slight majority of the population chose to hire that someone. We're stuck with the consequences.

 

[swalsh411]

A new employee working remotely from home in a State where the company has no other business generally will not obligate the employer to establish a withholding account, so the employee would have to make estimated payments. It would obligate the employer to set up an unemployment account which increases the administrative burden somewhat, but not substantially because you would only be making a payment in the first quarter and then the next 3 would all be excess wages in most States. (unless the employee earns very little). Some States like PA and RI have employee disability deductions that would have to be withheld and remitted quarterly. As to whether or not an income tax return would have to be filed in the new State, that would depend on what type of work is being done and if it generated revenue.

 

[davew128]

As to whether or not an income tax return would have to be filed in the new State, that would depend on what type of work is being done and if it generated revenue.

Revenue generation is irrelevant. The payroll alone would necessitate the income tax requirement depending on the work. In many states (not IL) the type of work is ALSO irrelevant for business tax purposes where the tax is an excise or capital based tax. By the way, the exemption for soliciting sales only applies to tangible personal property and not intangible property or services.

The exemption for soliciting tangible sales only applies to income and not franchise/capital taxes. For instance, in MA the OP's prospective employer would be obligated to file a corporate return regardless as corporate excise tax is based on the greater of apportioned income, excise on tangible property in the state, or apportioned net worth.