Friday, June 8, 2012
Nexus news for anyone with telecommuting employees in another state
A Delaware corporation with an employee allowed to telecommute full-time from her
residence was subject to the NJ corporation business tax (CBT), and required to register to do business in NJ as well as to file CBT returns and employment tax returns. The employee developed and wrote software code from a laptop computer from her residence in New Jersey and then uploaded it to a repository on the company's computer server in another state. This is no different than an out-of-state manufacturer employing someone to fabricate parts in New Jersey for a product that will be assembled elsewhere. The nexus created by the full-time employee in New Jersey was not de minimus. The corporation was doing business in New Jersey .