I employ a person that lives in New Jersey and will work on a construction project located in Queens, NY. Do I deduct New York City Resident tax as part of his witholding taxes?

The income tax is withheld for the state in which the work is performed. The work is performed in New York so New York tax is withheld. The employee may take a tax credit for the state of New Jersey on the taxes paid in New York .

Shirley