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Automaker Stellantis plans for workers to work remotely more often than not

The logo of Stellantis, the fourth largest automaker in the world, which will start trading in Milan and Paris following the completion of the merger of Fiat Chrysler and Peugeot maker PSA, will be at the main entrance of the FCA Mirafiori plant in Turin, Italy on January 18, 2021 to see.

Massimo Pinca | Reuters

DETROIT – When Fiat Chrysler employees, now Stellantis, get their expected returns in offices later this year, they will do so with a new company and a more flexible work schedule.

The automaker is launching a hybrid work initiative called “New Era of Agility”. The goal is for the majority of the company’s employees to work remotely most of the time. This includes 17,000 employees in North America, the majority of whom work in the Detroit area. Shannon Dziuda, director of special human resources projects for Stellantis North America, told CNBC.

“We want the decision in a facility to be deliberate, based on what works best for individuals and the company, and to support the health and wellbeing of the team,” she said during an interview on Friday.

As part of the plan, the company expects employees who combine remote and in-office work to do an average of 70% remote and 30% on-site work, she said. The division is a guideline, not a mandate, according to Dziuda. This does not include hourly manufacturing workers or employees who must be physically present in laboratories or elsewhere to do their job.

The decision to create such a program was made after the company received feedback from employees, many of whom have been working remotely for a year due to the coronavirus pandemic, Dziuda said. Similar announcements from General Motors and Ford Motor follow. However, GM and Ford have not published percentage guidelines.

Stellantis is planning a four- to six-week pilot trial for around 450 employees at the company’s North American headquarters in Auburn Hills, Michigan, starting in October. After that, Dziuda said, Stellantis will make changes to work areas and offices to meet the expected needs of all employees working on the new hybrid planning.

“The pilot will tell us what additional changes we may need to make to space, both physically and digitally,” she said.

The schedule for employees returning to offices is based on local and state regulations, but Dziuda said Stellantis currently plans to bring them back in late 2021 and early next year.

Around 15,000 people, including 12,000 employees, work at the North American headquarters and the technology center. About 10% are currently in the facility because their work requires them to be in the buildings.

Stellantis, like other companies, believes that its flexible work policy will help attract new employees.

“We want to be able to retain our top talent and attract new top talent and diverse talent,” said Dziuda. “As we know, a diverse culture leads to better innovations.”

According to a recent Prudential survey of 2,000 adults who were able to work from home during the pandemic, 87% want it to be possible after their coronavirus risk subsides.

Stellantis was formed in January through a $ 52 billion merger between Fiat Chrysler and French automaker PSA Groupe. Its CEO is Carlos Tavares, former CEO of PSA. Its chairman is John Elkann, who held the same position at Fiat Chrysler and is a descendant of the founder of the Italian automaker Fiat.

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The Tax Complications of Working Remotely Through the Pandemic

However, New Jersey has announced that it will give its new teleworkers credit for those New York City taxes for 2020, despite being entitled to the revenues as taxpayers now work within its boundaries, Walczak said. So residents don’t have to worry about double taxation for the time being. But New Jersey estimates it will forego more than $ 1 billion in sales as a result – suggesting the practice is unlikely to be sustainable in the long run, Walczak said.

The practice of states going beyond their borders to tax teleworkers was a problem even before the coronavirus emerged, and it is attracting more attention due to a spit between New Hampshire and Massachusetts. Massachusetts said last year it would tax the income of non-state residents who had worked in the state but teleworked during the pandemic. This angered neighboring New Hampshire, where thousands of residents commute to work in Boston and other Massachusetts cities. In October, she filed a lawsuit asking the US Supreme Court to hear her complaint. (More than a dozen other states – including New Jersey – have filed briefs asking the court to consider the case.)

New Hampshire workers are not double taxed because New Hampshire is one of nine states that do not have state income tax. But New Hampshire officials refuse to allow residents of any other state to be taxed for working within its borders. (Massachusetts said in a filing in response to the lawsuit that the policy is maintaining the pre-pandemic “status quo”.)

Since remote working could remain popular after the pandemic, federal action may be needed to make state income tax rules more uniform for teleworking, tax experts say. A group called the Mobile Workforce Coalition says it is building bipartisan support for reform.

“Teleworking,” said Sobel, “is becoming the norm.”

So if you worked in a state other than the usual in 2020, how should you approach tax season?

First, make a list of all the states you’ve worked remotely in, even if only for a short period of time, the accountants suggest. If you haven’t had a good look at it, try to estimate the number of days worked in each state. State laws vary, but typically income is taxed once you hit a threshold, such as: For example, the amount of money earned, the number of days you worked in the state, or a combination of both. About half of the states start the clock in just one day, while others use it in 30 or 60 days.

These types of rules generally apply not only to employees but also to freelancers, said Dina Pyron, world leader in the EY TaxChat mobile tax preparation app. “It doesn’t matter if you are an employee or a contractor.”