Tax News Update    Email this document    Print this document  

March 31, 2020
2020-0792

Mississippi will not require income tax withholding on wages paid to employees at temporary telework locations due to COVID-19

The Mississippi Department of Revenue announced on March 26, 2020, that during the period of the COVID-19 national emergency it will not impose nexus or alter apportionment of income for any business while its employees are temporarily on telework assignments within the state.

Mississippi does require that income tax be withheld from wages paid to all Mississippi residents regardless of where they work if the employer has business operations (nexus) within the state. Pursuant to the Department's announcement, the state will not assert nexus merely because an employee is temporarily on a telework assignment within the state due to COVID-19.

The announcement brings much-needed relief to Mississippi employers that could have been forced to incur other business taxes (e.g., sales & use, unemployment insurance) merely because employees are temporarily working from home within Mississippi due to the COVID-19 emergency.

Income tax withholding extensions also apply

As previously reported (EY Payroll Newsflash, Vol. 21, #105, 3-27-2020), in Notice 2020-01? the Mississippi Department of Revenue announced that it is extending the due date of income tax withholding payments for April through May 15, 2020. The decision to offer this relief was made in consultation with Governor Tate Reeves and the Mississippi legislative leadership.

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Peter Berard (peter.berard@ey.com)

———————————————
ATTACHMENT

EY Payroll News Flash 1 of 2

EY Payroll News Flash 2 of 2

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement