Remote work has expanded flexibility, but also tax and compliance exposure.

In the United States, even one employee in another state can create tax nexus and compliance obligations.

At the state level, rules vary significantly, requiring careful review.

Internationally, remote workers can create a permanent establishment, triggering foreign taxation under OECD guidelines.

What companies should evaluate:

• Where employees are physically located

• State and international tax exposure

• Employment law compliance obligations

What began as flexibility can quickly become liability if not properly managed.