Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.Ĭopyright © 1996 – 2022, Ernst & Young LLPĪll rights reserved.
#Nexus employment professional#
The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. Kenneth Hausser ( Debera Salam ( Kristie Lowery ( Peter Berard ( Payroll News Flash.Workforce Tax Services - Employment Tax Advisory Services 5).)įor additional information concerning this Alert, please contact: ( May 2019 Maryland Employer Withholding Guide (p. Note, however, that Maryland income tax withholding is not required if annual compensation is less than $5,000. The Comptroller points out that it does have a reciprocal agreement with Delaware therefore, wages paid to a Maryland nonresident who is teleworking in Maryland is Maryland-sourced income, and subject to Maryland income tax withholding. Generally, Maryland state income tax withholding is required on all wages paid to Maryland residents, regardless of where they were earned, and nonresident income tax withholding is required on all wages that are earned for services provided in the state.Īn exception to the Maryland nonresident income tax withholding requirement applies to wages earned within Maryland by residents of Virginia, the District of Columbia, West Virginia, and Pennsylvania because Maryland has a reciprocal agreement with these jurisdictions. The Comptroller emphasizes that the employer requirements for Maryland state income tax withholding are not changed. The Maryland income tax withholding rules are not changed The assertion of nexus for temporary work in the state due to COVID-19Īlthough the Comptroller stated it does not intend to change or alter the facts-and-circumstances basis it uses to determine nexus or income sourcing, it does understand that many businesses have had to temporarily alter how they deploy employees due to COVID-19, often due to gubernatorial orders for telework.Īccordingly, the Comptroller will take into account the temporary nature of work within the state due to COVID-19 in making a nexus determination, considering also whether the business correctly sourced income and whether the business properly withheld and reported employees' Maryland state income tax withholding. In Tax Alert 04-1420B, the Comptroller of Maryland provided guidance concerning the assertion of nexus and the income tax withholding requirements applicable to employees working temporarily in the state due to COVID-19. Maryland will consider waiving the assertion of nexus for employees working in the state temporarily due to COVID-19
0 kommentar(er)
