Massachusetts Sales Tax & Non-Resident Income Sourcing Changes
Ryan McDonell Manager, CPA
24 September 2021
Beginning in 2022, sales tax filers will have to break down online sales versus in-store sales. Meals tax filers will also be asked to break down cash sales versus credit card sales. Taxpayers subject to the new advance payment rules will be asked to report any advance payment made and any penalty calculated. Be sure that you will be able to have this information available for reporting in 2022.
After September 13, 2021, compensation earned by non-resident employees will be sourced based on where they actually work, regardless of where they worked prior to the COVID emergency. Non-resident employees must determine workdays in and out of Massachusetts based on actual workdays spent in and out of Massachusetts. This generally reverts back to pre-pandemic income sourcing for non-residents.
The full news release from the MA Department of Revenue may be found here