Continued Remote Working Guidance For Employees

With the continuation of COVID restrictions, employers should consider certain actions in regards to employee withholding.  Most states only imposes tax on employees for services that are physically perform in the state.  If a resident performs services in another state, a credit will generally be provided by the home state for taxes to the state in which the services were performed.

As the COVID restrictions continue, your employees may consider submitting a revised W-4 to designate the state in which withholding should occur.  If the employee is located in a state in which the business does not have a fixed employment location, the employee should be advised to make estimated payments.  If your employees have not considered the impact of Work From Home, they may have overpaid to the state in which they normally reported for work, and will need to request a refund of taxes withheld. They may also be underpaid to the state in which they have been performing such