Here are the updates to report since my last COVID-19 blog. First up, the Department of Labor is now, officially, enforcing the paid sick leave and paid family leave requirements of the Families First Act. There was a grace period for compliance and that has now passed.
The states are starting to get active with information on withholding taxes and especially on garnishments. These include:
Withholding Tax:
- Colorado: nonresident emergency workers are not subject to withholding for state income tax.
- Maryland: new guidance notes that the pandemic does not affect the withholding requirements for teleworkers.
- Massachusetts: compensation to a nonresident is still sourced to the state if the worker was performing those services within the state immediately before the pandemic and is now performing those services outside the state.
Garnishments: Pennsylvania and Washington are suspending or reducing wage garnishments or tax liens.
Most of the states have COVID-19 sections on their websites for either departments of labor or departments of revenue to assist employers with questions and compliance issues.
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