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CORRECTED: Calif. Teleworkers Won't Create Corp. Nexus During Pandemic

By Jaqueline McCool · September 14, 2020, 3:18 PM EDT

California will not seek to subject out-of-state companies to the state's franchise tax simply for having employees that are working remotely in the state during the novel coronavirus pandemic, the Franchise Tax Board said in an updated FAQ list.

The updated answers, published Friday, said that an employee working remotely in the state will not result in a company being considered to be doing business in California. The FTB further stated that it will not count compensation attributed to a teleworking employee towards the payroll threshold under California Revenue & Taxation Code section 23101 .

--Editing by Neil Cohen.

Correction: A previous version of this story misstated the FTB's position. The error has been corrected. 

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