Tax Law (Questions About Taxes)/Payroll tax nexus



I'm not sure if this is the right place for this question, so I hope you can help! I currently work from home for a company in another state. I want to work from a rented space in St. Thomas, Virgin Islands for a temporary period. I will be there for only a few months so I won't establish residency. My company said that this would cause an issue with payroll tax nexus laws. Considering the short duration and non-residency, is this really the case?

Any insight would be great.

Thank you!

If you work while a resident or temporary resident of the USVI, you will need to pay taxes as a resident in that territory.

While US law prevails in the USVI, it is a parallel tax system, but not the same system the IRS uses for the main US. There are special filing considerations.

It does not matter if you work there for 2 weeks or 2 months unless you are on a short-term business type trip, you are subject to USVI taxes and withholdings.

They are correct that this becomes a complex bookkeeping issue.

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Randall Klein, MBA, EA


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