On July 21, the Massachusetts Department of Revenue (“DOR”) issued employer guidance regarding the application of Massachusetts Paid Family Medical Leave (PFML) to employees temporarily working inside or outside of Massachusetts because of PFML. Specifically the DOR stated that:
- An individual who previously performed services outside of Massachusetts and was not subject to PFML will not become subject to PFML solely because the individual is temporarily working from home in Massachusetts due to a Pandemic-Related Circumstance and;
- An individual who previously performed services in Massachusetts but is temporarily working from home outside of Massachusetts solely due to a Pandemic-Related Circumstance continues to be subject to the PFML rules.
Massachusetts Issues Guidance on Taxability of Income Earned by Employees Temporarily Working Inside Massachusetts and Outside of Massachusetts Because of COVID-19.
The DOR also announced that the presence of one or more employees working remotely in Massachusetts due to (a) a government order issued in response to the COVID-19 pandemic, (b) a remote work policy adopted by an employer in good faith compliance with federal or state government guidance or public health recommendations relating to COVID-19, or (c) the worker’s compliance with quarantine, isolation directions relating to a COVID-19 diagnosis or suspected diagnosis, or advice of a physician relating to COVID-19 exposure (collectively, “Pandemic-Related Circumstances”) will not, by itself, create a state tax withholding obligation with respect to such employees.
A link to the DOR guidance for the Massachusetts Family Medical Leave and State Tax Issue can be found here: https://www.mass.gov/technical-information-release/tir-20-10-revised-guidance-on-the-massachusetts-tax-implications-of