Hubbell Policies

STATE TAX WITHHOLDING FOR HIGH TRAVEL EMPLOYEES POLICY

English

Owner : Vice President, TAX

Last Review: 2012.01.01

FIN – 4 7

Department: TAX

POLICY For all domestic employees, who meet or exceeds the 30 day threshold for traveling to a state outside the Primary Work State, the Corporate Tax Team will determine the appropriate state withholding for the employee and provide them with a notification. SCOPE This procedure applies to all subsidiaries, divisions and affiliates of Hubbell Incorporated located in the United States (“Hubbell”). PURPOSE To establish a uniform method to capture the information needed to report and withhold state payroll taxes for employees who work out of their primary work state (Mobile Employee) for a period of 30 cumulative days or more (30 day rule) during a reporting year (November 1 – October 31). Using the Concur expense reporting system, data will be reviewed to identify employees who meet the 30 day rule during a given reporting year. PROCEDURE Hubbell employees are paid and applicable state taxes are withheld based on the employee’s Primary Work State. Hubbell Corporate will monitor travel using the Concur expense reporting system to identify any employee who meets or exceeds a 30 day threshold for traveling to a state outside of the Primary Work State (Non-Home State). A reporting year of November 1 to October 31 will be used to allow for capturing travel data. The Concur travel data will be analyzed each quarter. Any employee who meets or exceeds the 30 days will receive a Travel Summary notification in the quarter after the travel has occurred. The state withholding for the traveling employee will be adjusted to account for the travel to 1 (or more) Non- Home States. The following is an example of the notification:

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