In the notice, which was issued Friday, the division said Rhode Island employers should continue withholding state income tax for employees temporarily working out of state solely because of the pandemic. That income will continue to be treated as sourced to Rhode Island for withholding tax purposes, the regulation said.
The regulation gives employers guidance on withholding requirements for employees whose locations have temporarily changed during the pandemic. Employees from other states who temporarily work remotely in Rhode Island will not be required to remit state income tax, the regulation said.
The emergency regulation was first issued on May 23 and then extended in September, again in November and once again to March 19. The latest extension of the emergency regulation goes to May 18.
--Additional reporting by James Nani and Abraham Gross. Editing by Vincent Sherry.
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