[rndw5517]

I am owner of a New York Corporation hiring a New Jersey resident to work for me in New York. What are my tax responsibilities? Please include corporate, withholding, unemployment taxes in your answer.

[AtlantaTaxExpert]

You should withhold FICA taxes (Social Security @ 6.2%; Medicare @ 1.45%), federal income taxes at the rate specified by the withholidng tables, and NY state taxes.

NJ state taxes can also be withheld if the NJ resident has other income sources. If not, withholidng NJ taxes is a waste of time, because the credit NJ gives for the NY state taxes paid will MORE THAN OFFSET whatever is owed in NJ state income tax.

Corporate tax requirements depend on the type of corporation you are and really is beyond the scope of this forum. Suggest you contact a competent tax professional on the corporate tax issues.

There are other tax considerations as well. Workmen's compensation/disability must also be considered.

Again, if you are not willing to do the research yourself, you should hire an experienced tax professional to handle your tax issues.

Unemployment taxes are paid exclusively by the corporation. There is both a state and a federal component of the unemployment tax. It is normally paid annually with the unemployment tax return.