The New Jersey Department of Transportation's Smart Moves program for employers has a telecommuting Web page that outlines the benefits of telecommuting programs and outlines how employers can begin a program. The state encourages telecommuting to reduce traffic, improve balance between work and family issues, and give opportunity to those with mobility issues and other disabilities. Go to http://www.state.nj.us/transportation
Note: State tax credits under the Smart Moves for Employers program have expired.
State tax issues. In 2010, the Tax Court of New Jersey ruled that an out-of-state company with a telecommuter residing and working out of the state was "doing business" in New Jersey and, thus, was subject to the New Jersey Corporation Business Tax Act (Telebright Corporation, Inc. v. Director, Division of Taxation, (New Jersey Tax Court, No. 011066-2008, March 24, 2010)).
The Tax Court cited the company's consistent contact with the employee and the employee's use of a company-owned computer as being sufficient to trigger a taxable presence in the state requiring the payment of state income tax under state law (NJ Admin. Code Sec. 18:7-1.9(b)).