Under an emergency rule that took effect Jan. 21 and a matching proposed rule from the state Department of Revenue, qualifying employers can choose to withhold taxes from March 13 through Dec. 31, 2020, based on the location of where an employee was regularly assigned to work before the pandemic. The rules were posted online ahead of the Feb. 16 edition of the Missouri Register.
The department said the emergency rule "will prevent an undue burden to employers who have been required to take extraordinary steps to protect the health of their employees and the public at large in response to the COVID-19 pandemic," referring to the respiratory illness caused by the virus.
To obtain the withholding relief, an employer must submit an affidavit saying that it did not have a time and attendance system in place to record its employees' work locations during the relief period. The rules specify that the regulations don't affect the state and local income tax liabilities of any resident or nonresident.
The department will accept comments on the proposed regulation until 30 days after its publication in the register.
Neighboring Kansas issued similar withholding relief on Jan. 27.
--Editing by Neil Cohen.
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