In its frequently asked questions (FAQs) concerning tax relief and COVID-19, the Georgia Department of Revenue announced that it will temporarily not impose nexus for work at home within the state that is directly due to the COVID-19 emergency. The Department also provides guidance concerning the income tax withholding requirements that apply.

Nexus

The Department will not use temporary work from home within the state that is directly connected with the COVID-19 emergency as the basis for establishing Georgia nexus or for exceeding the protections under P.L. 86-272 for the employer of the teleworker.

Income tax withholding

Also, if the employee is temporarily working in Georgia due to COVID-19, the wages the employee earns during this time frame will not be considered Georgia income and not subject to Georgia income tax or withholding. The Department makes the following stipulations:

• If the employee remains in Georgia after the temporary remote work requirement has ended, the normal rules for determining nexus, the employee's wages, and the employer's income tax withholding obligation will apply.
• Wages paid to a nonresident employee that normally works in Georgia but that is temporarily working in another state, under the circumstances described above, would be considered Georgia wages and the employer should continue to withhold Georgia state income tax.

Limitations of the guidance

These provisions are temporary and apply for period where:

• There is an official work from home order issued by an applicable federal, state or local government unit.
  OR
• Pursuant to the order of a physician in relation to the COVID-19 outbreak or due to an actual diagnosis of COVID-19, the employee is working at home. Additionally, the subsequent 14 days are included in the time period to allow for a return to normal work locations.

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