August 17, 2021 Vermont Department of Taxes ends temporary state income tax withholding guidance for teleworkers during COVID-19 The Vermont Department of Taxes announced that Governor Phil Scott removed all COVID-19 restrictions and ended the state of emergency effective June 15, 2021. Accordingly, the temporary income tax withholding guidance for teleworkers during COVID-19 applies only through June 14, 2021, unless the emergency order is reinstated. Under the COVID-19 guidance now revoked, the Department stated that if businesses had employees working remotely in Vermont on a temporary basis only, it would not require the employer to change the employee's work state to Vermont for state income tax withholding purposes. (See EY Tax Alerts 2020-2794 and 2020-1577.) For information concerning the income tax withholding rules that now apply, see the Vermont 2021 Income Tax Withholding Instructions. ———————————————
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