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Update on Remote Work Taxation

 

The PA Department of Revenue has issued guidance regarding temporary work due to Covid-19. While the Proclamation of Disaster Emergency is in effect, the Department will not consider a change to the sourcing of the employee’s compensation. This guidance is in effect until the earlier of June 30, 2021, or 90 days after the Proclamation of Disaster Emergency is lifted.  The PA local taxing agencies are also following this guidance. Most other states are issuing this same guidance.

However, if the employee’s position becomes a permanent remote work situation their taxes should be reviewed and updated accordingly. This pertains to state income tax withholding, unemployment tax, and local tax liabilities.

PA Department of Revenue – Telework during the COVID-19 Pandemic

Posted November 2020 – Copyright 2020

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