Is my remote work for the convenience of my employer in a bona fide office?
If you work remotely from another state for a New York employer, your income may still be taxable in New York unless your remote workplace passes New York State requirements to be considered a bona fide work place.
To be considered a bona fide office, there are multiple factors under three main categories. To be a bona fide employer office, the home office must meet the one factor in the primary factor category, or at least 4 factors of the secondary category and 3 factors in the other factors category:
The primary factor is that the home office contains specialized facilities or is near specialized facilities that would not be available at the main employer's place of business. The state of New York gives the example of a test driver for a car maker that lives closer to a test track than to the company offices.
The secondary factors include the following:
To be considered a bona fide office, there are multiple factors under three main categories. To be a bona fide employer office, the home office must meet the one factor in the primary factor category, or at least 4 factors of the secondary category and 3 factors in the other factors category:
The primary factor is that the home office contains specialized facilities or is near specialized facilities that would not be available at the main employer's place of business. The state of New York gives the example of a test driver for a car maker that lives closer to a test track than to the company offices.
The secondary factors include the following:
- The home office is required by the employer as a condition of employment. The means the company you work for has stipulated that you MUST work from home in your employment contract
- The employer has a legitimate reason that they need you to work from your home office outside the state of New York. For example, maybe your home office is closer to the worksite for a project that you are working on.
- You perform some of the core duties of your employment at the home office. As an example a stock broker executing trade for his clients would be performing some core duties of employment from their home office.
- You meet with clients, patients, or other customers on a regular and continuous basis from the home office. An example for this factor maybe that your work clients are located closer to your home than the New York office, and you have regular meetings with those clients in the home office.
- Your employer doesn't provide you with a workspace at the New York office. This means the only place you can perform your office work duties is in your home office.
- Your employer reimburses your home office expenses.
- The employer maintains a separate telephone line and listing for the home office.
- Your home office address and phone number is listed on the business letterhead and/or business cards of the employer.
- You use a specific area of the home exclusively to conduct the business of the employer that is separate from the living area. The home office will not meet this factor if the area is used for both business and personal purposes.
- Your employer sale wholesale or retail products, and you keep an inventory of product or samples in your home office for your employer.
- Employer business records are kept at your home office.
- Your home office address is included as one of your employer's business locations in their advertising.
- Your home office would be deductible (if the deduction was still available for employees) under the federal home office expense deduction rules.
- You are not an officer of the company.
