Bill Would Repeal COVID-19 Tax Withholding Law

This week, the House Ways & Means Committee received testimony on House Bill 157, legislation that would expedite the repeal of a temporary law (HB 197) enacted last session to ensure municipal income tax withholdings are based on an employee’s principal work location — not where he/she may be working remotely during COVID-19.

While the Legislature pushes to end this practice immediately, the OMA in its testimony continued to advocate for ample lead time to allow employers to prepare their payroll systems and account for ongoing variables, such as vaccine availability for their workforces and hybrid work arrangements. Contact the OMA’s Rachael Carl with questions or if you would like to be added to the OMA working group on this issue. 3/11/2021