Question

EMPLOYER REGISTRATION

Forum|Forum|5 years ago
September 9, 2020
2 replies
0 views

My employer is based and registered in CA, I am working temporarily from home office in Texas from March 2020 thru March 2021 due to pandemic situation. My employer has no sales/income in Texas, nor my job has anything with sales or establishing any business in Texas. I choose Texas to be with family. Is it required for my employer to register in Texas because of my telecommuting from Texas?

X

xmasbaby0

Employee

No

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

V

vsundeep11Author

Can you please elaborate?

X

xmasbaby0

Employee

@vsundeep11

You should really be asking about paying CA state tax in your situation, not whether your employer--who has no business ties to TX--should "register" in TX because there is one employee staying in TX temporarily. It sounds like you have been living and working in CA until the pandemic, and have decided to ride out the pandemic in TX, while still working for a CA employer. You do not mention if you still own a home in CA or kept an apartment there, etc. or whether you maintained CA as your domicile. When you prepare 2020 tax return, you will not pay tax to TX since TX has no state income tax. But CA may expect you to pay CA tax on that income, even if you are a part-year resident and a part-year "non-resident." Is the employer still withholding CA tax from your paychecks?

@TomD8 Thoughts for this user?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

A

Anonymous

Ask your company why they think they have to register in TX. there is no individual or corporate income tax. There could be other reasons though. TX does have a sales tax and your physical presence there may require them to collect and pay that tax.

V

vsundeep11Author

@12309

A foreign filing entity, as described in section 9.001 of the BOC, must file an application for registration, previously known as an application for certificate of authority, if it “transacts business” in Texas. Texas statutes do not specifically define “transacting business;” however, section 9.251 of the BOC lists 15 activities that do not constitute “transacting business.” Generally, a foreign entity is transacting business in Texas if it has an office or an employee in Texas or is otherwise pursuing one of its purposes in Texas. The secretary of state cannot give a legal opinion as to whether a particular foreign entity is “transacting business” in Texas. If you are unsure whether registration is required, you should consult with your legal counsel.