Remote Worker Relief Act of 2020

To establish rules for States or other taxing jurisdictions to tax businesses and individuals during COVID–19 while employees are performing employment duties in other States or taxing jurisdictions, and for other purposes. 1. Short title This Act may be cited as the Remote Worker Relief Act of 2020 2. State and local tax certainty (a) Status of employees during covered period Notwithstanding any provision of law of a taxing jurisdiction, with respect to any employee who is working remotely within such taxing jurisdiction during the covered period— (1) except as provided under paragraph (2), any wages earned by such employee during such period shall be deemed to have been earned at the primary work location of such employee; and (2) if an employer, at its sole discretion, maintains a system that tracks where such employee performs duties on a daily basis, wages earned by such employee may, at the election of such employer, be treated as earned at the location in which such duties were remotely performed. (b) Status of businesses during covered period Notwithstanding any provision of law of a taxing jurisdiction— (1) in the case of an out-of-state business which has any employees working remotely within such jurisdiction during the covered period, the duties performed by such employees within such jurisdiction during such period shall not be sufficient to create any nexus or establish any minimum contacts or level of presence that would otherwise subject such business to any registration, taxation, or other related requirements for businesses operating within such jurisdiction; and (2) except as provided under subsection (a)(2), with respect to any tax imposed by such taxing jurisdiction which is determined, in whole or in part, based on net or gross receipts or income, for purposes of apportioning or sourcing such receipts or income, any duties performed by an employee of an out-of-state business while working remotely during the covered period— (A) shall be disregarded with respect to any filing requirements for such tax; and (B) shall be apportioned and sourced to the tax jurisdiction which includes the primary work location of such employee. (c) Definitions For purposes of this section— (1) Covered period The term covered period (A) beginning on the date on which such employee began working remotely; and (B) ending on the earlier of— (i) the date on which the employer allows, at the same time— (I) such employee to return to their primary work location; and (II) not less than 90 percent of their permanent workforce to return to such work location; or (ii) December 31, 2020. (2) Employee The term employee (3) Employer The term employer (4) Out-of-state business The term out-of-state business (5) Primary work location The term primary work location (6) Taxing jurisdiction The term taxing jurisdiction (7) Wages The term wages (8) Working remotely The term working remotely COVID–19 (A) to comply with any government order relating to COVID–19; (B) to prevent the spread of COVID–19; and (C) due to the employee or a member of the employee’s family contracting COVID–19. (d) Preservation of authority of taxing jurisdictions This section shall not be construed as modifying, impairing, superseding, or authorizing the modification, impairment, or supersession of the law of any taxing jurisdiction pertaining to taxation except as expressly provided in subsections (a) through (c). 3. Effective date; applicability (a) Effective date This Act shall apply to calendar years beginning after December 31, 2019. (b) Applicability This Act shall not apply to any tax obligation that accrues before January 1, 2020.

Summary: Remote Worker Relief Act of 2020 This bill establishes rules for the taxation of wages of individual taxpayers who work remotely to comply with COVID-19 (i.e., coronavirus disease 2019) requirements and for the taxation of the businesses for whom such taxpayers work.