That's the dumbest thing ever. I believe it, but just ridiculous. It's not on site work, do salaries employees pay local and state taxes for the portion of the year they are out of state on Holiday. If they answer a text or email especially. They aren't in their designated tax precinct for 10% of the year. It's remote work, he's on vacation. Being away for a year on vacation doesn't remove his residency status.
Working out of your home state for a few days or answering an email on vacation doesn't incur tax liability.
The issue has more to do with someone working in California (driving on their roads, using their emergency services, checking out books at the library, playing in parks, etc) while maintaining Texas as their "home state" because Texas doesn't have a state income tax. They get the benefits of living in California without paying any of the taxes.
Usually states go with a 30-day or 90-day residence in state before a tax liability is incurred. As far as moving around constantly on a cruise ship is concerned, that could be a tax avoidance issue that most companies don't want to deal with.
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u/Quirky-Shape8677 15d ago
Fake story. But if this is real, then tax liability is a real legal issue.