COVID-19 has far-reaching impacts for many businesses. During these past months, many companies have had employees working remotely from their homes. For some businesses this may have unintended consequences such as creating nexus in more states. Having remote employees working in other states has created filing obligations for many years, so this is not a new development. But if your business was not already accustomed to remote employees then you could be surprised by new income tax or sales tax obligations in addition to state withholding and unemployment taxes.

 

State Relief

 

Some states have passed legislation to exempt businesses from certain filing obligations when the only reason they temporarily have employees working remotely in their state is due to COVID-19. The following states have passed some form of legislation:

  • Alabama
  • California
  • District of Columbia
  • Georgia
  • Indiana
  • Iowa
  • Kentucky
  • Maryland
  • Massachusetts
  • Minnesota
  • Mississippi
  • New Jersey
  • North Dakota
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina

 

Boulay Can Help

 

Boulay has been staying on top of these developments, and we can answer your questions on this topic. Many of our clients need occasional help with sales tax questions, state income tax questions, determining where to file returns, dealing with state tax notices/audits, while others want to offload their entire sales tax compliance burden. To learn more, contact a Boulay advisor at 952.893.9320 or learnmore@boulaygroup.com and ask about our state and local tax services.

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