Compliance Stuff

In an opinion issued on May 15, 2025, the State of New York Tax Appeals Tribunal, the highest administrative forum for state tax appeals, upheld the application of the state’s income tax “convenience rule” imposing New York tax on wages earned by a New York City law school professor while he worked from his Connecticut residence before and during the COVID pandemic. The petitions had been filed by taxpayers Edward A. and Doris Zelinksy.  An appeal of this decision to a New York appellate court is expected.  The opinion affirms the November 30, 2023 determination of an Administrative Law Judge (“ALJ”) in the case. It accepts most of the ALJ’s reasoning while providing its own rationale on the constitutional and state law issues that will serve as guidance to the New York Department of Taxation and Finance and to New York-based employers with remote or hybrid nonresident employees working all or part-time in other states.  The Department’s current administrative position on...

Takeaway Payroll compliance refers to how companies follow laws related to payroll and payroll taxes, such as the Fair Labor Standards Act. Businesses that fail to ensure compliance in payroll processes can find themselves subject to fines, audits, lawsuits and other penalties for violations. Organizations should rely on effective HR and payroll software to automate and streamline the tedious, manual processes that support payroll compliance. Every year brings the potential for new employment laws. And legislation that affects payroll is no exception. For employers, failing to ensure payroll compliance opens the door to issues like: costly noncompliance fines untimely audits and other penalties payroll mistakes Compliant payroll may seem like a tall order because it  is . At the same time, compliance is necessary to ensure the long-term success of a business and fair, equitable treatment for its employees. Let’s dive into how payroll compliance works, some of the common laws that i...