By Payroll and Entitlements Editorial Staff
The Rhode Island Department of Revenue has issued emergency regulations and withholding tax guidance for employers that have employees who are temporarily working remotely due to the coronavirus pandemic.
Withholding for nonresidents who normally work in Rhode Island. Rhode Island will continue to treat as Rhode Island-source income the income of employees who are nonresident individuals temporarily working outside of Rhode Island solely due to the COVID-19 state of emergency.
Withholding for Rhode Island residents who normally work out-of-state. Rhode Island will not require employers located outside of the state to withhold Rhode Island income taxes from the wages of employees who are resident individuals but who are temporarily working within Rhode Island solely due to the COVID-19 state of emergency.
Duration. The emergency rules are in effect for 120 days, or up to 180 days if extended, unless one of the following occurs:
- the COVID-19 state of emergency in Rhode Island has ended;
- permanent rules and regulations are promulgated; or
- the Tax Administrator enters into a withholding agreement with any other state(s) that would then govern the withholding of income taxes between Rhode Island and the other signatory state(s). (Emergency Regulation 280-RICR-20-55-14, Rhode Island Department of Revenue, effective May 23, 2020; ADV 2020-22, Rhode Island Division of Taxation, May 26, 2020)
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