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Nebraska DOR Issues Guidance on Telework Nexus During Pandemic

Posted on May 21, 2020

Nebraska employers do not have to change how they report or remit income tax withholding for employees working remotely during the COVID-19 pandemic, according to guidance from the state Department of Revenue.

The guidance, issued May 19, is an update to the DOR website's answers to frequently asked questions regarding income tax changes for businesses during the pandemic.

According to the guidance, employers will not need to change the state indicated before the pandemic for tax withholding purposes in their payroll systems if employees that normally work on site are now telecommuting or have temporarily relocated within or outside Nebraska.

The guidance will apply retroactively from the start of the state of emergency declaration issued by Gov. Pete Ricketts (R) March 13 until January 1, 2021, unless the state of emergency is extended.

In New Jersey, the Division of Taxation on March 30 issued similar guidance stating it would suspend nexus thresholds for employees working from home because of the pandemic.

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