Many businesses have employees telecommuting due to Covid-19. Because of this and the fact that having an employee working in another state can create nexus to that state making the business responsible for paying income taxes to that state even though the only activity that take place is telecommuting by an employee. Many but not all states have addressed this issue with specific guidance or through information issued by their state tax departments.
To protect your business from becoming subject to taxes for states that employees temporarily reside it’s important to know what states will and what states will not count these temporary employees that working outside their normal location due to Covid-19 as creating nexus for tax purposes.
The following states through guidance issued by their tax departments, or by statute or other means have addressed this issue and determined that temporary workers located in their state due to Covid-19 will NOT create a nexus for business income taxes. These states are: Alabama, Arizona, California, District of Columbia, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, and Wisconsin.
It should be noted that the remaining states ether have not yet provided guidance and employees temporary working from these states due to Covid-19 may or may not create 
an ongoing nexus which creates an income tax nexus for the business to the state.
This area is subject to continuing updates and even the states that have issued guidance have specific rules, information provided here should be relied on as definitive and every business with employees temporarily located in other states due to Covid-19 or for any other reason should check with their tax advisor and or state taxing authorities in the states in which they have employees temporarily or permanently residing. The information included here was deemed accurate as of 12/01/2020 but is subject to changes and revisions.