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Georgia nexus, sole proprietor

Technical topics regarding tax preparation.
#1
JAD  
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I'm looking at client's P&L, and he paid wages to someone in GA. There is lots of information online about GA economic nexus, but I am having trouble finding anything that tells me if this small amount of wage ($2k) created nexus. The employee was assisting with website issues, not soliciting sales a la PL 86-272.

Form 500 instructions seem clear that he doesn't have to file a return, even if nexus was created. The business did not earn any GA sourced income. More than dealing with income tax return filing requirements, I am wondering if there are other complexities created by this tiny connection to the state that I should make him aware of.

Thanks.
 

#2
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There's no income tax nexus merely because of this dynamic. GA is single sales factor, market based sourcing.

One thought that comes to mind is that you might want to investigate whether city and/or county businesses license(s) are required due to an agent of the business operating within their jurisdiction. Most likely not if there's no sales solicitation.

I assume the client is already registered with the GA DOR for a GA withholding tax ID if he's running payroll for an employee based in GA, and that he's meeting those employment tax obligations.

Most issues, including applying for GA tax IDs, can be quickly handled through the online Georgia Tax Center ("GTC") portal.
 


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