On July 21, 2020, the Massachusetts Department of Revenue updated its guidance for activities related to the pandemic in Technical Information Release (TIR) 20-10. The following provisions are in effect until the earlier of December 31, 2020 or 90 days after the state of emergency in Massachusetts is lifted.
- With respect to withholding taxes on employees’ wages, if the employee’s regular place of work was in Massachusetts prior to the pandemic, Massachusetts taxes should still be withheld. If the employee is temporarily in Massachusetts because of the pandemic, withholding is not required.
- The presence of one or more employees working remotely from Massachusetts, due solely to the pandemic, will not trigger sales and use tax collection requirements.
- Corporate excise tax nexus will also not be triggered solely by employees working remotely in Massachusetts.
To avail themselves of the sales tax or excise tax exemptions, employers will need to maintain written records that the pandemic-related circumstances caused the need for employees to work remotely in Massachusetts.
TECHNICAL INFORMATION CONTACT:
Mark L. Nachbar
Principal
Ryan
213.627.1719
mark.nachbar@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.