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Nebraska Explains Withholding Reporting for Workers Affected by COVID-19

Dated May 21, 2020

SUMMARY BY TAX ANALYSTS

The Nebraska Department of Revenue clarified that employers are not required to change an employee's work location in their payroll systems for income tax withholding purposes if the employee is now working remotely or has relocated within or outside Nebraska because of COVID-19.

Frequently Asked Questions about the Income Tax Changes Due to the COVID-19 National Emergency

Do employers/payors need to change how they report or remit income tax withholding for employees who were working onsite before the COVID-19 pandemic, but who are now temporarily working from an alternate site, including from home, to remain safe?

No. DOR will not require employers to change the state which was previously established in their payroll systems for income tax withholding purposes for employees who are now telecommuting or temporarily relocated to a work location within or outside Nebraska due to the COVID-19 pandemic. A change in work location is not required beginning with the date the emergency was declared, March 13, 2020, and ending on January 1, 2021, unless the emergency is extended.

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