News & Resources

Title

States Extend Nexus Guidance for Employees Working Remotely

BY: Lia Coniglio, Esq. | 12/11/20

As the COVID-19 pandemic continues to affect people across the country, states have extended their guidance regarding nexus and withholding requirements. Here are some recent state developments.

Massachusetts

The Massachusetts Department of Revenue has extended pandemic-related state income taxation, withholding, and nexus rules that have been in effect on an emergency basis since April and apply from March 10, 2020.The requirements are now scheduled to expire 90 days after the COVID-19 state of emergency is lifted [TIR 20-15, 12-8-20]. New Hampshire has filed a lawsuit over these rules, which may be decided by the U.S. Supreme Court.

Rhode Island

Under emergency regulations that were extended again to January 18, 2021, income of employees who are nonresidents working outside of the state solely due to the pandemic will continue to be treated as Rhode Island-source income for withholding tax purposes [Department of Revenue, Division of Taxation News, 11-23-20].

South Carolina

The South Carolina Department of Revenue has issued additional guidance, effective from March 13, 2020, through June 30, 2021, stating that it will not use the temporary change of an employee’s work location during the COVID-19 relief period to impose withholding tax requirements [Information Letter #20-29, 11-30-20].

APA Webinar Offered

Looking for state nexus guidance? APA is offering two opportunities to attend its live, 90-minute webinar “Nexus and Remote Workers: How Has the Pandemic Increased Your Exposure?” on December 17 and January 14. The webinar will show the many complexities surrounding telecommuters and how to handle the rapid shift to remote work due to the COVID-19 mandates. Attendees can email their questions in advance to [email protected] January 14 webinar questions are due by January 4.

Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.


Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.