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New Jersey Tax Division Announces Temporary Corporate Nexus Waiver

Dated Mar. 31, 2020

SUMMARY BY TAX ANALYSTS

The New Jersey Division of Taxation has announced that in light of COVID-19, it will temporarily waive state statute provisions that require the presence of an employee who is employed by a corporation outside of the state but works from their New Jersey home to be treated as sufficient nexus for that corporation, as long as the employee is currently working from home due to the company's closure or social distancing policy.

03.30.20

Tele-Commuting and Corporate Nexus — As a result of COVID-19 causing people to work from home as a matter of public health, safety, and welfare, the Division will temporarily waive the impact of the legal threshold within N.J.S.A. 54:10A-2 and N.J.A.C. 18:7-1.9(a) which treats the presence of employees working from their homes in New Jersey as sufficient nexus for out-of-state corporations. In the event that employees are working from home solely as a result of closures due to the coronavirus outbreak and/or the employer's social distancing policy, no threshold will be considered to have been met.

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