21 April 2020 North Dakota will waive assertion of nexus for employees working in the state temporarily due to COVID-19 In frequently asked questions (FAQs) on business taxes, the North Dakota Office of the State Tax Commissioner announced that if employees are working temporarily in a telecommuting capacity due to COVID-19 restrictions and recommendations, it will not assert income tax nexus on that basis alone. The announcement does not change the requirement that employers must withhold resident North Dakota income taxes from wages paid to residents, regardless of where earned (unless there is no business operation in the state other than telework related to COVID-19). North Dakota nonresident income tax applies to all wages for services provided within the state. An exception to the nonresident income tax withholding requirement applies to wages earned within North Dakota by residents of Minnesota and Montana because North Dakota has a reciprocal agreement with these states. This announcement brings much-needed relief to North Dakota employers that otherwise could have been forced to pay business income taxes merely because employees are temporarily working from home within the state due to the COVID-19 emergency.
Document ID: 2020-1062 | |||||||||||
