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    State withholding tax

    Is an employer "required" to withhold state income tax from employees? What about employees located in a different state (not same state as business)?

    #2
    Yes

    Originally posted by luke View Post
    Is an employer "required" to withhold state income tax from employees? What about employees located in a different state (not same state as business)?
    withholding from employees is required in any state they work in if the employer has
    nexus in that state. Obviously it is required in the state where home office is.

    However I recall once that Johnson and Johnson did not withhold state tax from sales reps
    in Alabama because they had no nexus in the state.
    ChEAr$,
    Harlan Lunsford, EA n LA

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      #3
      Originally posted by luke View Post
      Is an employer "required" to withhold state income tax from employees? What about employees located in a different state (not same state as business)?
      That may vary with each state and their particular tax law. Need to research states involved. Note you are in WV. Might depend on border states reciprocity laws as well, such as VA, OH, etc. Had a VA resident that worked in WV, and they withheld WV tax. We had to file to get it back every year, but we had it stopped finally. Client paid estimated taxes to VA and had no withholding in WV after that.
      Last edited by Burke; 07-15-2009, 02:07 PM.

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        #4
        such a controversy

        I am aware that a certain truck rental company withheld tax paid to an East Coast State on the guys and women who rent out the trucks at rental locations in a West Coast State.

        There was a lot of controversy about that among those who had the withholding occur, and I believe that the company reversed its action very close to the April 15 tax filing deadline.
        Last edited by OtisMozzetti; 07-15-2009, 02:52 PM.

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          #5
          Thanks

          guys - my client is in WV but will have employees (not nexus) in several other states. It will be a pain to withhold taxes for all those other states (and file W2s, withholding forms etc)
          but it will be a REAL PAIN for the employees IF WV taxes are withheld!

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