A service engineer spends 80% of her time maintaining the employer's productive business property and 20% maintaining the employer's nonbusiness rental properties. This year, her compensation totaled $90,000. The payroll factor assigns $90,000 to the state in which the employer is based.

Question

Quizplus · Accepted Answer

The payroll factor should only assign the proportion of the compensation that corresponds to the time spent on activities related to the productive business property of the employer in the state, not the entire $90,000, since 20% of her time was spent on nonbusiness rental properties.

A Service Engineer Spends 80% of Her Time Maintaining the Employer's