COVID-19
As of August 9, 2020
(Information below is subjected to change based on state legislative and local updates.)
| State: | COVID-19 State Legislative Ruling and Local Updates: |
|---|---|
| Alabama | State issued no changes to the existing souring rules. |
| Alaska | No State Income Tax |
| Arizona | State issued no changes to the existing souring rules. |
| Arkansas | State issued no changes to the existing souring rules. |
| California | State issued no changes to the existing souring rules. |
| Colorado | Employers are not to withhold taxes for nonresidents who are paid for disaster-related work. The exemption does not apply to Colorado resident employees. https://www.colorado.gov/pacific/tax/nonresident-disaster-relief-worker-exemption-subtraction |
| Connecticut | State issued no changes to the existing souring rules. |
| Delaware | State has not issued any guidance for employer based businesses that now have nonresident employees working from home as a result of COVID-19. |
| District of Columbia | No changes to the current residence taxation. |
| Florida | No State Income Tax |
| Georgia | State issued no changes to the existing souring rules. |
| Hawaii | State issued no changes to the existing souring rules. |
| Idaho | State issued no changes to the existing souring rules. |
| Illinois | Out-of-state employers, whose employees that normally work at an out-of-state location but now work from home in Illinois due to COVID-19, are subjected to withholding if they are working more than 30 days. https://www2.illinois.gov/rev/research/publications/bulletins/Documents/2020/FY2020-29.pdf#search=withholding%20covid |
| Indiana | Indiana will not use someone’s temporary work location due to COVID-19 as the basis for establishing nexus or for exceeding the protections provided by P.L. 86-272 for the employer of the temporary relocated employee. Click Indiana’s FAQ’s to read more. |
| Iowa | State issued no changes to the existing souring rules. |
| Kansas | State issued no changes to the existing souring rules. |
| Kentucky | State issued no changes to the existing souring rules. |
| Louisiana | State issued no changes to the existing souring rules. |
| Maine | State issued no changes to the existing souring rules. |
| Maryland | Maryland has issued a statement that it will not alter its withholding requires as a result of the pandemic. https://www.marylandtaxes.gov/covid/documents/TaxAlert050420-EmployerWithholdingonTeleworkers.pdf |
| Massachusetts | In accordance with regulation 830 CMR 62.5A.3 and is effective through the earlier of December 31, 2020, or 90 days after the date on which the Governor of the Commonwealth gives notice that the state of emergency declared in Executive Order 591 is no longer in effect. Nonresidents who were working in Massachusetts prior to Massachusetts COVID-19 state of emergency; who are now working out-of-state due to pandemic-related circumstances will still continue to have their income sourced to Massachusetts. Residents who were working out-of-state prior to the Massachusetts COVID-19 state of emergency, who are now working in Massachusetts due to the Pandemic will be eligible for a credit for income taxes paid to the state where they were previously working. In addition, the employer is not required to withhold Massachusetts income tax if they are required to withhold for the other state. See Sourcing rules issued by the state. Click here. |
| Michigan • City Income Tax |
Michigan issued no changes to the existing souring rules for state withholding. Michigan has issued guidance to employers regarding City Income tax during COVID-19. Click to here to learn more. |
| Minnesota | Minnesota will not impose nexus for business taxes on companies that have employees who were working out-of-state but are now working from home in Minnesota. Therefore, compensation will continue to be sourced to where the income was earned before COVID-19. https://www.revenue.state.mn.us/covid-19-faqs-businesses |
| Mississippi | State issued no changes to the existing souring rules. |
| Missouri | State issued no changes to the existing souring rules. |
| Montana | State issued no changes to the existing souring rules. |
| Nebraska | State issued no changes to the existing souring rules. |
| Nevada | No State Income Tax |
| New Hampshire | No State Income Tax |
| New Jersey | Employees who are temporarily working from an out-of-state home office as a result of COVID-19 that previously worked in New Jersey will have income sourced as determined by the employer in accordance with the employer’s jurisdiction. https://www.state.nj.us/treasury/taxation/covid19-payroll.shtml Reciprocal agreement with Pennsylvania eliminates the above sourcing issue as withholding is for residence of the other state. |
| New Mexico | State issued no changes to the existing souring rules. |
| New York | There is a pending NY ruling that would allow employees working from home outside of New York state due to COVID-19 and for the convenience of the employer to be exempt from New York income tax and income tax withholding. Until this is passed, all income earned is sourced to New York. https://www.nysenate.gov/legislation/bills/2019/s8386 |
| North Carolina | State issued no changes to the existing souring rules. |
| North Dakota | State issued no changes to the existing souring rules. |
| Ohio (municipal) | Enacted on March 27, 2020. The Ohio Tax Relief Legislation provides relief for employees telecommuting to a different municipality as a result of COVID-19, to not have those days counted towards the normal 20 day grace period that employers are required to start withholding. Municipal withholding will still be sourced to the principal work location. Ohio Tax Relief Legislation |
| Oregon | State issued no changes to the existing souring rules. |
| Oklahoma | State issued no changes to the existing souring rules. |
| Pennsylvania • Philadelphia |
Earnings for nonresident employees temporarily working from home as a result of COVID-19 in a nonreciprocal state will still be considered as compensation earned in Pennsylvania and therefore subjected to PA withholding. https://revenue-pa.custhelp.com/app/answers/detail/a_id/3741/kw/Covid Has provided the employer the option to exempt from Philadelphia withholding for nonresidents or continue withholding for those impacted by COVID-19. https://www.phila.gov/media/20200504163558/Wage-Tax-non-resident-COVID-19-guidance-040520.pdf |
| Rhode Island | Rhode Island will not require employers to withholding tax for Rhode Island residents working from home due to COVID-19 who normally work outside the state. http://www.tax.ri.gov/COVID/ |
| South Carolina | State issued no changes to the existing souring rules. |
| South Dakota | No State Income Tax |
| Tennessee | No State Income Tax |
| Texas | No State Income Tax |
| Utah | State issued no changes to the existing souring rules. |
| Vermont | State issued no changes to the existing souring rules. |
| Virginia | State issued no changes to the existing souring rules. |
| Washington | No State Income Tax |
| West Virginia • City of Charleston |
West Virginia issued no changes to the existing souring rules to state withholding rules. City residents who are temporarily working from home, whose normal place of employment is outside the City is not subjected to have the User fee withheld. https://www.charlestonwv.gov/documents/covid-19-city-user-fee-statement-tue-04142020-1447 |
| Wisconsin | State issued no changes to the existing souring rules. |
| Wyoming | No State Income Tax |