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Michael Tedesco

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Many employees continue to telecommute due to the COVID-19 outbreak.  As discussed in our previous blog post on state tax nexus and apportionment issues, out-of-state employers may need to consider whether a telecommuting employee’s activities could create nexus, exceed Public Law 86-272 protections, or impact the employer’s state income tax apportionment factor (particularly in states with a payroll factor or a sales factor where receipts are sourced based on cost of performance).

Numerous states have provided tax relief in response to the COVID-19 outbreak, often in the form of tax filing and payment deadline extensions.  At this time, 40 states and Washington, D.C. have provided a corporate income tax filing and/or payment deadline extension.  Some of these states have conformed to the July 15 federal corporate income tax extension date, while others have extended to an earlier or later date.  Some states have also extended income tax…

Many employees are now telecommuting due to the COVID-19 outbreak.  In our previous blog post, we discussed employers’ potential withholding issues as a result of employees working remotely.  In this blog post, we will discuss potential nexus and apportionment issues due to employees working remotely.

With many employees now telecommuting due to the COVID-19 outbreak, employers could face additional state income tax withholding requirements if their employees telecommute from a different state than the one in which they typically work.  However, a few states are starting to announce temporary withholding relief in response to the COVID-19 outbreak.