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

By James Nani · 2021-01-15 17:38:32 -0500

The Rhode Island Division of Taxation on Friday extended again 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 in a notice extending the emergency regulation 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 was first issued on May 23, 2020, and then extended in September and again in November. The latest regulation was due to expire on Jan. 18. The latest extension lasts until March 19, 2021. 

The regulation 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.

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

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