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RI Again Extends Withholding Rules On Out-Of-State Workers

By James Nani · 2020-11-24 12:06:43 -0500

The Rhode Island Division of Taxation has again extended an emergency regulation giving withholding tax guidance for employers that have employees who are temporarily working remotely due to the COVID-19 pandemic.

Rhode Island employers should continue withholding state income tax for employees temporarily working out of state due solely to the novel coronavirus pandemic, the state Department of Revenue said Monday in an emergency regulation extended for 60 days. That income will continue to be treated as sourced to Rhode Island for withholding tax purposes, the regulation said.

The emergency regulation, which was first issued on May 23 and extended in September to expire on Nov. 18, gives employers guidance on withholding requirements for employees whose locations have temporarily changed during the pandemic. Employees from other states who temporarily work remotely in Rhode Island will not be required to remit state income tax, the regulation said.

The emergency regulation was extended to Jan. 18.

--Additional reporting by Jaqueline McCool and Abraham Gross. Editing by Vincent Sherry. 

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