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 Question:
Nexus - Withholding State Taxes Question Id:6481
Cristina cannalonga
10-20-2017 11:10AM
User Id: 178728
With Reference to Webinar - Multi-State Tax Issues for Payroll 2017 (ID - 704147)
Hello, We are located in California and we have an employee that leaves in Florida, but doing work in other states as a project manager.
How do I determine the state taxes for the other states if Florida doesn't have state taxes

 User Answer
Customer Service ComplianceOnline
10-20-2017 11:10AM
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Hi Cristina,

Thank you for posting your question online.

We have sent the above query to our expert and shall revert back as soon as we get response from the expert.

If you have any queries, please email me at chethan.t@complianceonline.com

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Team ComplianceOnline
 User Answer
Customer Service ComplianceOnline
10-20-2017 02:10PM
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Hello Cristina,

The employer will have to determine for each state in which the employee works:
1) the amount of wages the employee earned in that state.
2) whether the state has an income tax
3) whether the employer has nexus in that state or whether the employer has voluntarily registered to withhold taxes in that state.
4) whether the employee is subject to withholding in that state - some states have a de minimis amount of time or earnings before the employee is subject to withholding, some states require withholding as soon as the employee has earnings.
5) the state's requirements for withholding and reporting income taxes and reporting wages.

My guess is that a project manager will be assigned to a particular state for a period of time - On that basis, it is likely the employer will likely have nexus in each state in which the employee works. Determine the amount earned in the state, withhold on that basis according to that state's withholding rules. and report to each state accordingly. Tax should be withheld and reported to only states that have income taxes. If the employee works in any states that do not have income taxes (eg FL), do not withhold tax or report the wages to any other state. Do not withhold CA tax unless the employee works in CA.


Regards,
Team ComplianceOnline
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