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January 18, 2022
2022-0098

St. Louis, Missouri extends indefinitely earnings tax guidance for remote workers

In response to the COVID-19 emergency, the St. Louis Collector of Revenue announced in 2020 that employees who are working remotely in connection with the COVID-19 emergency should be treated as working in their original place of work for purposes of the city's earnings tax. Accordingly, St. Louis employers were instructed to continue to withhold the earnings tax in the same manner as before they were temporary relocated due to COVID-19. (See EY Tax Alert 2020-2044, 8-12-2020.)

St. Louis employers are reminded that this special guidance, last updated October 7, 2021, continues to apply.

Special provisions for the St. Louis earnings tax

For 2020 and beyond, the following requirements apply.

  • The earnings tax guidelines have not changed due to the increase in virtual workspaces.
  • If you live within the city limits, you will be required to pay the earnings tax, regardless of where you work.
  • If you live outside of the city limits and your employer continues to operate within the city limits, you will be required to pay the earnings tax even if your employer permits you to work virtually.
  • If you have family members or friends who are living with you and/or working from your home within the city limits, they too will be required to pay the earnings tax.
  • If your place of employment is in the city and you are required to travel for business outside of the city to meet customers, clients, etc., those days can be deducted from your earnings tax calculation with Form E1-R. However, if your place of employment remains in the city while you are working virtually, you will be required to pay the tax.

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

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