The business is registered in NY and an employee lives in Arizona. Do I withhold AZ or NY taxes? Do I withhold both state taxes? No state taxes?
CaptainForest
Feb 4, 2007, 02:24 PM
I believe you would only withhold AZ taxes on the individual who lives and works completely in AZ.
AtlantaTaxExpert
Feb 4, 2007, 03:25 PM
Captain Forest has it right.
You withhold in the states where the employee works and where he lives.
In this case, it's Arizona!