Tips For Telecommuting After Telebright

In a case appealed from the tax court, the New Jersey Superior Court, Appellate Division, recently affirmed that an out-of-state employer was subject to the New Jersey corporation business tax because it allowed one of its employees to telecommute from New Jersey.

Factual Background

The employer, Telebright, is a Delaware corporation with its principal place of business in Maryland.¹ Telebright initially hired the employee in question to work for the corporation in Maryland.² In 2004, the employee relocated to New Jersey, after her husband received a job in the state. In order to retain the employee's services, Telebright agreed to allow her to telecommute.³ Hereafter, the employee worked full-time from her home in New Jersey writing software code.⁴ The software code she wrote was ultimately incorporated into a web application offered by Telebright to its clients.⁵ Telebright withheld New Jersey gross income tax from the employee's wages, and remitted those