Fwd: COVID ALERT: State Tax Implications of Remote Employees Due to COVID-19

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On May 20, 2020, at 4:38 PM, Armanino LLP <update@armaninollp.com> wrote:

COVID ALERT: State Tax Implications of Remote Employees Due to COVID-19

To view this email in a web browser, click here.   UPDATE   Latest in regulations and government changes prompted by COVID-19   State Tax Implications of Remote Employees Due to COVID-19 Summary With the rapid adoption of city and county shelter-in-place rules and state lockdowns (i.e. Hawaii) many employees found themselves working from locations that they never expected to be working from and for much longer than expected. Now employers have begun to ask, "Where are my employees working from? And what do I need to consider as a result of having almost, if not all, my employees now be remote employees?" Unfortunately, the answer isn't easy or straightforward. Having employees working remotely can potentially impact the employer's state income tax withholding and business activity taxes (e.g. income, franchise and gross receipts). State Income Tax Withholding on Employee's Wages Generally, state income tax withholding is required in the state where the employee is providing services, NOT the state the employee resides. There are exceptions to this rule, for example, if there is a reciprocal agreement between the state of residence and the state where the work is performed. Reciprocal agreements, most commonly seen on the east coast, allow residents in a neighboring state to not have to file and pay income taxes on wages earned in the non-resident state. However, due to COVID-19, many employees are now working from their homes or maybe wherever they were when the shelter-in-place or lockdown rules were executed. Having employees performing work in these new jurisdictions may require employers to register with the state and begin withholding payroll taxes on that employee's wages. But at what point is that required? After the employee has been there a week, two weeks, a month, two months, longer? Unfortunately, many states remain silent on the length of time that an employee must be working from that state to create a withholding requirement. The good news though is that the states that have started addressing this question via guidance or law changes, have said that so long as the employee's telework location is temporary and a result of the COVID-19 pandemic, the state will NOT seek to impose withholding requirements. However, employees that choose to continue working from their remote location after an applicable work from home order has been lifted could be subject to state tax withholding in that state/city. Income Tax/Business Activity Taxes (BAT) Nexus Income tax/BAT nexus can be established by physical presence and/or economic nexus. Numerous states have some sort of economic nexus rule or have set economic nexus thresholds, but regardless of whether or not a state has an economic nexus standard, the physical presence of an employee working within the state generally establishes income tax/BAT nexus. That being said, what happens now that employees are working from states that they have never worked from before? Does that employee's inability to travel to their normal office location (which may be in another state) now create income tax/BAT nexus in the state or city that they are now working from? Prior to COVID-19, states had taken a pretty hard line that having one employee in the state, even if for only one day, could subject that business to the state's business tax (income/franchise/gross receipts). Some states had expanded physical presence to mean the employee had to be in the state/city in excess of seven days to create physical presence nexus, with other states defining it as 10 days. Now with COVID-19 shelter-in-place currently approaching 10 weeks in some areas, businesses must now consider what new jurisdictions they might have income tax/BAT nexus and whether they will need to file any additional 2020 state/locality tax returns due to the location(s) of their remote employee(s). Similarly, some states recognized the implications of remote employees on business taxpayers and have provided COVID-19 nexus relief stating that the state's tax department will not use someone's temporary location as the basis for asserting BAT nexus in the state. Georgia even went so far as to say that an employee's temporary location would not void Public Law 86-272 protection for that employer so long as that employee's location is temporary and there remains an "official work from home order issued by an applicable federal, state, or local government unit." The fact that Georgia addressed P.L. 86-272 implications is much appreciated as most states have remained silent on this even if they have provided general COVID-19 nexus guidance. Re-evaluating P.L. 86-272 protection is something any business that has previously claimed protection should do, as having non-sales employees within a state is considered an unprotected activity and will void any P.L. 86-272 protection previously applicable to the business taxpayer. Consequently, it may cause business taxpayers to not only have additional state income tax liabilities but also impact the amount of sales subject to throwback to the state of origin (if goods are shipped from a state with a throwback rule). The key to ensuring that an employee's remote location does not create income tax/BAT nexus is to make sure the employee's location is in fact temporary. If an employee chooses to remain in their remote location after an applicable work from home order has been lifted, the COVID-19 nexus relief may no longer be applicable. However, it is less clear if even a temporary remote location will void P.L. 86-272 protection, especially as states have more recently pushed against the application of P.L. 86-272 protection in general, as it limits their ability to tax out-of-state taxpayers. Sales/Use Tax Nexus Similar to BAT taxes, sales and use tax nexus has historically been created by having even just one employee visit the state, let alone reside there for multiple weeks. While the Wayfair case created economic nexus rules for most states and many localities, the state's physical presence rules remain in place post Wayfair. Having employees temporarily reside within a state where the business is not already collecting and remitting sales/use tax may now subject that business to new sales/use tax registration, collection and filing requirements. Most states that have considered the implications from COVID-19 remote employees to payroll tax withholding and BAT nexus have also recognized the need to address the impact on sales/use tax nexus. These few states have issued guidance that sales tax nexus will be "waived" so long as no other factor created sales/use tax nexus — meaning if the jurisdiction's economic nexus thresholds are met, or if the taxpayer had property in the state in addition to the remote employee, then the state would not waive sales tax nexus. Insights What should employers do? The most important step is making sure you know where your employees are working from and then monitor their time in that location. Employers should also continue to monitor the guidance issued by states where they have employees currently located. What should employees do? Employees should keep track of the time spent working at their temporary telework location, monitor payroll tax withholdings on their paystubs, and inform their employer if their current location is expected to continue once shelter-in-place/lockdown rules are lifted. Becoming more knowledgeable about their current location, state of residence, normal office location payroll withholding and personal income tax rules will help employees review their payroll tax withholdings and assist them as they consider any new state tax filings for 2020. Ideally, the hope is that instead of waiting on all the states to each issue their own guidance on payroll withholding, BAT nexus, and sales/use tax nexus, there would be some level of federal guidance, as COVID-19 is a global pandemic that has implications for everyone in every state and is not a "natural disaster" limited to one or even a few states. However, it is unknown if that will happen and for now, we must rely on each jurisdiction's approach to providing relief to taxpayers whose workforce may be unexpectedly more dispersed across the country or even the world due to COVID-19. Armanino is here to help provide you with support and expertise through these uncertain times. If you or your team have any questions visit our COVID-19 Resource Center, reach out to one of our Rapid Response Team Leaders, or if you need immediate assistance, contact us for a rapid response.   This communication is provided as an educational service by Armanino LLP for clients and friends of the firm. This communication is an overview only, and should not be construed as legal or tax advice or advice to take any specific action. Individuals or organizations should consult with their tax/legal advisors before making any tax/legal-related decisions. Armanino LLP, 12657 Alcosta Blvd. Suite 500, San Ramon, CA 94583 You're receiving this email because you're signed up to receive updates from Armanino LLP. If you'd prefer not to receive updates you can manage your subscriptions. View our privacy policy.

Fwd: The BIG Pivot (Weekly Flight Brief)

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From: Ed Rush <support@edrush.com>
Date: Wed, May 20, 2020 at 8:05 AM
Subject: The BIG Pivot (Weekly Flight Brief)
To: <stevescott@techacq.com>

Hey Steve, This week's Flight Brief is about what I am calling "The BIG Pivot." Today, you're about to learn...

What the brave new world is going to look like post-quarantine And how to take advantage of a H-u-y-u-u-u-u-g-e opportunity So you can share your message with the world and make a lot of money doing it. In fact, this "Pivot" is going to be SO critical to you and your business that I am going to be talking about it for a few weeks. Remember, you can read or listen to the Weekly flight Brief so have at it. 3, 2, 1, launch… What I am Focusing On Right Now Just to come clean about this, I've sped way past the "focusing on" stage. Frankly, I am obsessed about the idea of PIVOTING into what's working now in this brave new world. That's... Because the post-quarantine world is so dramatically different from the world of 2 months ago Because the business world just opened UP in a whole new way SO THAT...WHEN you take action now, you can carve out a spot you can own for decades to come. A little history of information... In the 60s, people got their information from one man: Walter Cronkite. His hold on information was so pervasive that President Johnson himself once said "If I've lost Cronkite, I've lost Middle America." In the 70s and 80s, Americans learned what was "true" from ABC (Peter Jennings), NBC (Tom Brokaw), or CBS (Dan Rather). If it didn't exist on "The Nightly News" it didn't exist. Period Then in 1991, the Persian Gulf war catapulted a little cable news network called CNN to center stage with a totally new concept: 24-Hour News. Quickly thereafter the field was crowded with Fox, MSNBC, and others vying for your time and attention. The quick result was polarization and tribalization (along with the inevitable mass confusion) of America. Now add to that an innumerable number of online "news" outlets and the field became divided while America became unstable and confused. So what did the country do? They each chose their own Walter Cronkite. To make sense of the confusion, Americans simply turned their attention to their favorite "expert." For the last 2 years, most Americans have preferred to hear from people like Kim Kardashian or Ben Shapiro more than CNN or Fox. Which brings me to you... Steve, the sands are shifting again. Everything just changed. People are looking for Walter Cronkite again, but instead of the elite, they are looking for someone AUTHENTIC. They are looking for TRUTH. They are looking for YOU. The door literally just opened for authors, experts, speakers, and thought leaders like you to share their message, grow a following, and change the world. The country just got a jolt of fake and people now have a passionate desire for REAL. Listen, COVID just reset the world. And it 100% changed the online space. Much like the Gulf war did for cable news, this "pandemic" just opened a window for you to share your message (and finally be heard). To put it another way… The industrial revolution led to the information revolution that led to the "gig" economy that opened the door for the New Expert Economy. So pay very close attention to what I am about to say… Right now...at this very moment...people are looking for you, your experience, your story, and your solution. Will they find you? If the answer to that question is "no" or "maybe," let me give you a little kick in the pants: YOU have about 8 months (12 months max) to get your butt in front of them. If you don't, you will miss what I consider the single greatest opportunity of our lifetime. And if you do, you will have a following that will pay you well for a long, long time. As for me, I am doubling down. I will NOT miss this opportunity. Period. I suggest you join me. Seriously, hang tight because over the next few weeks, I am going to share how to grow, accelerate, and dominate. For now, here are 4 quick tips on what to do right now. Tip #1 Pick a Single Social Media Platform and FOCUS Your Attention There The platform you choose is up to where your market is. For example, if you're targeting CEOs, LinkedIn is your place. If you're looking to find homeschool Moms or hairdressers, go to Instagram. All things being equal, here are the platforms ranked from best to worst… LinkedIn - Best by far, especially in the business environment. My 10,000 LI following is 10 times better than my 165,000 Facebook list. Instagram - that's my latest favorite place right now for inexpensive email leads. IGTV is becoming big. I get 400-800 views on each video which is more than YouTube where the original content streamed. YouTube - especially if your content works best over video (like organic gardening tips or SEO strategies). Sadly, the results usually come from YouTube ads. In other words, you may have to put some money into the machine to get the views you want. Facebook - nearly worthless except for retargeting and groups. Twitter - worthless...dead...little...bird. Tip #2 Create Short Videos on a Specific Topics and Use it On Your Favorite Platform I am falling in love (again) with video. I think the connection you get with your market through video is incredible and people are consuming video quickly. I've also been testing adding subtitles to my videos on social media (especially LinkedIn) with good results. Quick video tip: START STRONG. There are 3 ways I recommend starting your videos... Start with the word "you" Start with the word "imagine" Or start by saying "In this video, you're going to learn…" Ideal Video Length = no shorter than 5 minutes and no longer than 12 minutes. Tip #3 Write or Relaunch a Book People are looking for you. They really are. IF you want to write a book, do it now. Here is an article to help get you started. If you already have a book, now is a great time to relaunch it with a new cover. Tip #4 Go Against the Grain Last thing, and don't send me angry emails about this, ok? Now is a great time to launch a live in-person event. Seriously, I know this sounds crazy, but think about it...when is the best time to do something? When no one else is doing it. So...am I about to launch a live event? YUP. Just watch. Seriously, put June 25-27 on your calendar.* App of the Week / Challenge of the Week My App of the week is nothing. Haha! That's because my challenge of the week is to go ONE week without watching, listening, or reading the news. One Week NO News My personal rule goes as follows: anytime I read, listen, or watch the news and react emotionally I have to take a week off. And between us kids, it's been hard to NOT react emotionally to some of the recent news stories. So, are you in? Seriously, you can do this. Out. Ed P.S. I am really thinking about doing a LIVE Event. It will be 3-Days of my favorite experts to show you how to crush "the new normal." If I do this event, it will be soon (with all of the necessary precautions of course). But I probably won't be mass marketing it. So, if I did it, would you be interested? Reply to this and let me know. If the idea of a live event scares you, you shouldn't come. I want to respect all views on this situation. If it helps you to know, the audience will be separated farther away than they have done for the last 2 months now at WalMart and the room will be fully sanitized several times a day. In other words, chill, we're going to go about this while simultaneously using our brains. It's going to be great tho. P.P.S. If you're not registered for tomorrow's training called, "How To Dominate The 'New Normal' and Make a Ton of Money Sharing Your Message" do that now.

Unsubscribe Ed Rush & Associates P.O. Box 1290 Bonita, California 91902 United States (619) 292-2599

Fwd: How to Solve the “Manager as Coach” Dilemma

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From: Business Models for Teams <tim@businessmodelsforteams.com>
Date: Mon, May 18, 2020 at 11:24 AM
Subject: How to Solve the "Manager as Coach" Dilemma
To: Steve Scott <stevescott@techacq.com>

View this email in your browser How to Solve the "Manager as Coach" Dilemma Progressive companies worldwide recognize that traditional "command-and-control" management is not simply outdated — it is often downright harmful. Managers spend too much time giving instructions or direction, depleting their already limited energy available for true leadership tasks. Meanwhile, outstanding employees who are unable to make decisions about their own work become dissatisfied and leave, pushing up turnover and recruiting costs. One solution to this dilemma is the "manager as coach." The manager-as-coach approach says that, rather than giving directions, managers should coach people to become more self-directed at work. By helping people develop both situational awareness and an understanding of their workplace roles, they will perceive what needs to be done — and take ownership for doing it. This makes good sense. Yet in practice, the manager-as-coach promise remains largely unfulfilled. Why? First, many managers lack solid formal grounding even in basic management or supervisory skills. And coaching techniques must build upon — not substitute for — these foundational management skills. Second, few managers feel confident in their ability to perceive and respond appropriately to the very human motivations — and emotions — underlying workplace behavior. After all, they are not trained psychologists.   How, then, is it possible to fulfill the promise of manager-as-coach?   A growing number of enterprises in the healthcare, technology, and consulting sectors are experiencing a unique form of success. They are using business (or service) model tools and techniques to enable leaders and their teams to think and act in unison. The modeling approach overcomes key hurdles to achieving the promise of manager-as-coach. First, modeling provides simple, readily-learned, collaborative tools that quickly build both situational awareness and an understanding of a person's role within a team or enterprise. Second, the tools are logical and factual, so they reduce the need for managers to perceive unseen motivations or emotions. Equally important, the tools focus directly on workplace operations and the employee's role.   Finally, the modeling approach is collaborative. Managers facilitate, but employees are challenged to both define and take responsibility for playing the most productive role possible within a team or enterprise. The modeling approach to manager-as-coach starts with understanding both team and personal service models, and how they relate to each other. How about you? Would like to make manager-as-coach a reality for yourself or your enterprise? See the Certified Practitioner program overview for details. Wishing you all the best! Tim Clark Bruce Hazen Authors, Business Models for Teams Copyright © 2020 Business Model You, LLC, All rights reserved. You are receiving this mail because you signed up to receive the Business Models for Teams book sample and be notified when the book has been published. Our mailing address is: Business Model You, LLC 1804 SE 38th Ave Portland, OR 97214 Add us to your address book unsubscribe from this list    update subscription preferences

ARE YOU USING WEBINARS TO SELL YOUR PRODUCTS/SERVICES?

Make Sure You Don't Cross This Fine Life & Death Line Of A Webinar...

Webinars are a great way to sell.

They build rapport. They provide value. They position you as an expert.

A bonafide example of education-based marketing.

And because of this, most entrepreneurs and marketers think that you should teach a lot in your webinars. That you to spill a ton of knowledge, wisdom & information to educate your attendees.

Because the more they know, the easier it will be for them to make a buying decision, right?

Actually, wrong.

You see, as I learned working on several 6 and 7-figure webinars so far with Anik Singal, there IS such thing as overteaching and oversharing.

And even though it sounds like a good thing, it actually HURTS SALES!

Too much information shared on a webinar can lead to two things:

False confidence that they already heard everything they need and that they can do it on their own, without investing in your product/service...

Overwhelm with new information. That overwhelm leads to confusion. And a confused mind does not buy...

So what you need to do is to find that fine line between the life and death of your webinar. And walk on that line carefully. Without crossing on one side or the other.

Because just as sharing too much information, sharing too little is also dangerous.

Share too little, and your webinar becomes nothing more than a pitchfest that wastes people's time. And people HATE their time being wasted.

So how do you make sure you're walking down that fine line?

First, make sure you have ONLY ONE idea to present on that webinar.

For example, let's say you're selling some business coaching program.  Don't talk about how they need to work on their marketing, their team building, leadership, business culture... in that one webinar. It's too much. Focus on one thing.

Or let's say you're selling some software that does multiple things for multiple clients. Don't show everything. Focus on ONE key feature for ONE client.

You can cover other things in other webinars.

And second, make sure you're sharing the WHAT and not the HOW.

If you go into sharing with people HOW to do something, that creates those two problems we mentioned above - false confidence & overwhelm.

But if you teach them WHAT they need to do, you're giving them enough to start thinking. To get their mind working. And if they want to go into more detail, they can check your program, course, coaching, software, whatever.

Pay attention to these two things, and your webinars will convert better. (Assuming you have a good offer, but that's a topic for another post.)

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