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RI Extends Withholding Rules For Out-Of-State Workers

By James Nani · July 21, 2021, 12:15 PM EDT

Rhode Island extended an emergency regulation giving withholding tax guidance to employers that have employees temporarily working remotely due to the coronavirus pandemic, the state Division of Taxation announced.

The division said in an advisory release Tuesday that the expiration date for the emergency withholding regulation has been extended to Sept. 15, but the regulation will terminate sooner if Rhode Island's state of emergency declaration expires before then. The state of emergency is currently extended to Aug. 6, the division noted.

The regulation says employers should continue withholding state income tax for employees temporarily working out-of-state due solely to the coronavirus pandemic. Income from employees temporarily out of state will continue to be treated as sourced to Rhode Island for withholding tax purposes under the regulation. 

The emergency regulation has been extended multiple times since the beginning of the pandemic. It was first announced in May 2020

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

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