Telecommuters' tax- NY/NJ

Telecommuting has grown in popularity. It's cheap and convenient for both employers and employees. However, it can produce some significant and unpleasant income tax surprise. For states such as NY and NJ, all income earned from an employer are allocated to their respective state unless it is necessary for the non-resident to perform the work out of their state. There is a convenience vs necessity test. If work is being performed by the non-resident employee for their convenience rather than because it is necessary, then their income will be allocated and subject to income tax.