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September 26, 2023

Missouri rescinds income tax withholding rule for temporary work locations during the COVID-19 emergency

The Missouri Department of Revenue (DOR) has rescinded the rule (12 CSR 10-2.019) governing income tax withholding on wages earned at temporary work locations from March 13, 2020 through November 1, 2020 (the COVID-19 relief period) because the rule is no longer applicable.


During the COVID-19 relief period, the DOR issued a temporary income tax withholding rule giving employers the option of withholding Missouri income tax as if those wages were earned from work performed at the employee's primary work location, even though the employees were working from a temporary work location outside of Missouri.

Employers that elected to withhold and remit Missouri income tax based on the primary work location of employees were required to submit, on or before January 31, 2021, an affidavit notifying the DOR of the following:

  • The employer did not have a time and attendance system in place for all employees as of the emergency declaration date
  • The employer implemented a time and attendance system during the COVID-relief period but did not have one in place to identify the locations at which employees performed services before implementation
  • The employer will issue forms W-2 to employees consistent with the primary work location of each employee for all or part of the COVID-19 relief period during which an employee was not covered by a time and attendance system
  • The employer will notify impacted employees of the employer's election no later than five business days after submission of the affidavit to the DOR

Ernst & Young LLP insights

Like Missouri, generally all state and local COVID-19 relief rules governing income tax withholding no longer apply. Accordingly, employers that are continuing to allow employees to work from their home offices should confirm that that they are withholding state and local income taxes under the applicable regular withholding and reporting requirements.


Contact Information
For additional information concerning this Alert, please contact:
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (
   • Kenneth Hausser (
   • Debera Salam (

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor