|Payroll Factor during the Governor's Emergency Order|
The current conditions under the COVID-19 pandemic and the stay at home order, may make it difficult to determine where employees will be performing their duties for the entire year. To assist taxpayers on how to report payroll under these current conditions, the City of Lacey offers the following guidance to taxpayers:
• To utilize the prior year’s payroll factor percentage to calculate the current year’s quarterly payroll factor percentage and true up the payroll factor at the end of the year, when the complete current calendar year’s information is available.
• If the taxpayer prefers to use more current data and believes their work-from-home arrangements during the pandemic will last less than six months of the year, they may use the Q1 2020 payroll factor percentage.
• Regardless of how the taxpayer determines their payroll factor for the quarter, they must review the payroll factor and make the appropriate adjustments at the end of the year when information is available for the complete current calendar year.
If you have questions about any specific COVID-19 or apportionment factor issues, please call us at (360) 491.3212.