Mobile Workforce State Income Tax Simplification Act of 2011 – H.R.1864

In the 112th U.S. Congress, the Mobile Workforce State Income Tax Simplification Act of 2011 (H.R. 1864) was introduced to address state income tax rules affecting employees who work in more than one state.

The bill proposed a uniform federal standard for determining when a state may tax the wage income of a nonresident employee.

The official legislative record and actions for H.R. 1864 are maintained by the U.S. Congress and are available on Congress.gov.

The official published bill text is provided by the U.S. Government Publishing Office and is available on GovInfo.

The House Judiciary Committee published its official report on H.R. 1864 as House Report 112-386.

Purpose of the Bill

H.R. 1864 sought to simplify income tax compliance for employees and employers when work is performed across multiple states
during a single calendar year.

The bill addressed administrative burdens created by differing state tax rules that require tracking employee workdays in
numerous jurisdictions.

The House Judiciary Committee explained the purpose and policy rationale for the bill in House Report 112-386.

Thirty-Day Threshold for Nonresident Wage Taxation

A central provision of H.R. 1864 was the establishment of a uniform day-count threshold for nonresident wage taxation.

Under the bill, a state generally could not tax a nonresident employee’s wages unless the employee performed employment
duties in that state for more than 30 days during the calendar year.

The statutory language establishing the thirty-day threshold appears in the official bill text published on GovInfo.

Employer Withholding Provisions

H.R. 1864 also proposed rules governing employer income tax withholding for employees who perform services in more than one state.

The bill generally linked employer withholding obligations to the same day-count standard used to determine whether wages
could be taxed by a nonresident state.

The employer withholding provisions appear in the official bill text published by the U.S. Government Publishing Office on GovInfo.

The House Judiciary Committee discussed the employer withholding framework in House Report 112-386.

Definitions and Scope

The bill included statutory definitions that limited the scope of the proposed federal standard.

Certain categories of individuals and types of compensation were excluded from coverage under the Act’s definitions.

The definitions and exclusions appear in the official bill text published on GovInfo.

Federal Preemption

H.R. 1864 proposed federal preemption of state income tax and withholding rules that conflicted with the bill’s uniform standard.

States would have been prohibited from applying lower day-count thresholds to covered nonresident employees.

The preemption provisions are contained in the official bill text published on GovInfo.

Legislative Outcome

H.R. 1864 was introduced in the House of Representatives during the 112th Congress.

The bill did not become law before the conclusion of that Congress.

The complete legislative history and recorded actions remain available on Congress.gov.

M. Spik

Editor
25 years of experience managing tax, accounting, payroll, and employment-related information portals. Editor of Accounting Portal since 2011.
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