§ 44-14-14.5 Payroll factor. – (a) General. The payroll factor is a fraction, the numerator of which isthe total amount paid in this state during the taxable year by the taxpayer forcompensation and the denominator of which is the total compensation paid bothwithin and outside of this state during the taxable year. The payroll factorshall include only that compensation which is included in the computation ofthe apportionable income tax base for the taxable year.
(b) When compensation paid in this state. Compensationis paid in this state if any one of the following tests, applied consecutively,is met:
(1) The employee's services are performed entirely withinthis state.
(2) The employee's services are performed both within andoutside of the state, but the service performed outside of the state isincidental to the employee's service within the state. The term "incidental"means any service which is temporary or transitory in nature, or which isrendered in connection with an isolated transaction.
(3) If the employee's services are performed both within andoutside of this state, the employee's compensation will be attributed to thisstate:
(i) If the employee's principal base of operations is withinthis state;
(ii) If there is no principal base of operations in any statein which some part of the services is performed, but the place from which theservices are directed or controlled is in this state; or
(iii) If the principal base of operations and the place fromwhich the services are directed or controlled are not in any state in whichsome part of the service is performed, but the employee's residence is in thisstate.
§ 44-14-14.5 Payroll factor. – (a) General. The payroll factor is a fraction, the numerator of which isthe total amount paid in this state during the taxable year by the taxpayer forcompensation and the denominator of which is the total compensation paid bothwithin and outside of this state during the taxable year. The payroll factorshall include only that compensation which is included in the computation ofthe apportionable income tax base for the taxable year.
(b) When compensation paid in this state. Compensationis paid in this state if any one of the following tests, applied consecutively,is met:
(1) The employee's services are performed entirely withinthis state.
(2) The employee's services are performed both within andoutside of the state, but the service performed outside of the state isincidental to the employee's service within the state. The term "incidental"means any service which is temporary or transitory in nature, or which isrendered in connection with an isolated transaction.
(3) If the employee's services are performed both within andoutside of this state, the employee's compensation will be attributed to thisstate:
(i) If the employee's principal base of operations is withinthis state;
(ii) If there is no principal base of operations in any statein which some part of the services is performed, but the place from which theservices are directed or controlled is in this state; or
(iii) If the principal base of operations and the place fromwhich the services are directed or controlled are not in any state in whichsome part of the service is performed, but the employee's residence is in thisstate.
§ 44-14-14.5 Payroll factor. – (a) General. The payroll factor is a fraction, the numerator of which isthe total amount paid in this state during the taxable year by the taxpayer forcompensation and the denominator of which is the total compensation paid bothwithin and outside of this state during the taxable year. The payroll factorshall include only that compensation which is included in the computation ofthe apportionable income tax base for the taxable year.
(b) When compensation paid in this state. Compensationis paid in this state if any one of the following tests, applied consecutively,is met:
(1) The employee's services are performed entirely withinthis state.
(2) The employee's services are performed both within andoutside of the state, but the service performed outside of the state isincidental to the employee's service within the state. The term "incidental"means any service which is temporary or transitory in nature, or which isrendered in connection with an isolated transaction.
(3) If the employee's services are performed both within andoutside of this state, the employee's compensation will be attributed to thisstate:
(i) If the employee's principal base of operations is withinthis state;
(ii) If there is no principal base of operations in any statein which some part of the services is performed, but the place from which theservices are directed or controlled is in this state; or
(iii) If the principal base of operations and the place fromwhich the services are directed or controlled are not in any state in whichsome part of the service is performed, but the employee's residence is in thisstate.
