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The Missouri Department of Revenue (DOR) has rescinded the rule (12 CSR 10-2.019) governing income tax withholding on wages earned at temporary work locations from March 13, 2020 through November 1, 2020 (the COVID-19 relief period) because the rule is no longer applicable.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:
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.
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor