Tax

Another Cost of COVID-19 Remote Work – States Want their Cut of Payroll Taxes

Many employers now have employees who have shifted from working in the employer’s office to working remotely from home as a result of the COVID-19 pandemic. The situation where an employer’s office is located in one state and the employee now works from home in a different state raises several state tax implications, including creating tax nexus between an employer and a state (which would subject the employer to the state’s income and sales tax regimes) and requiring an employer to withhold state income taxes from compensation paid to such employee. READ MORE

FFCRA Guidance from the IRS: How To Secure Tax Credits for COVID-19 Leave Payments

On March 31, 2020, the IRS issued “COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs” to help small and midsize employers navigate the tax relief available under the Families First Coronavirus Response Act (“FFCRA”). READ MORE