When the General Assembly voted in March to override the governor’s veto of Senate Bill 22, the countdown started on the repeal of temporary language that has allowed employers to continue withholding employees’ municipal income tax based on their principal (pre-pandemic) place of work.
Absent a law change, there’s a chance the temporary withholding provision could go away as soon as late August — meaning employers would need to begin withholding income tax in the municipalities in which their employees are remotely working. The OMA contends that August is too soon for employers to revamp their payroll systems and, among other things, have return-to-work plans in place or determine the treatment of hybrid work arrangements. The OMA is advocating for an end date that is no earlier than Dec. 31, 2021.
Click here to tell your lawmakers how your operations would be affected if your business is forced to enact withholding changes as early as August. 5/6/2021