17 April 2020 Minnesota provides nexus relief for employees working from home temporarily in the state due to COVID-19 The Minnesota Department of Revenue announced in its COVID-19 FAQs for businesses that the Department will not seek to establish nexus for any business tax solely because an employee is temporarily working from home due to the COVID-19 pandemic. This guidance does not change the requirement that Minnesota employers are required to withhold resident income tax from all wages earned within the state if there are business operations within the state other than temporary teleworkers working from home due to COVID-19. The guidance also does not relieve an employer from the obligation to withhold nonresident income tax for wages paid for services performed within the state except for nonresidents who are residents of the reciprocal agreement states of Michigan and North Dakota. This announcement, does, however, bring much needed relief to Minnesota employers that otherwise could have been forced to pay business taxes (e.g., sales and use tax, unemployment insurance) merely because employees are temporarily working from home within the state due to the COVID-19 emergency.
Document ID: 2020-1027 | |||||||||||
