Ask Experts Questions for FREE Help !
Ask
    SSM123's Avatar
    SSM123 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 24, 2012, 05:48 AM
    Must an employer withhold taxes base on where the employee lives? I think it is requ
    Must an employer withhold taxes base on where the employee lives? I think it is required if the employee lives in MA. What about UT and PA?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 24, 2012, 08:45 AM
    Tax withholding IS required on both where the client LIVES and where he WORKS.

    If the tax rate for the state where he WORKS is bigger than the where he lives, withholding for the state where he lives can be omitted because the tax credit for the taxes paid in the working state will completely offset any tax owed to the residency state.

    Further, some bordering states have reciprocity agreements which allow withholding of taxes ONLY for the residency state. I know Kentucky and Ohio have such an agreement.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

My employer did not withhold enough social security taxes [ 4 Answers ]

My employer withheld 98.92 in social security taxes, roughly 20.00 less than should have been withheld. I have verified the ammounts with my last check stub, and the social security table. Upon calling the employer she informed me that it was my fault (I filled out a w4, but NEVER mentioned...

How to file taxes when paid by check but employer did not withhold taxes [ 3 Answers ]

I work for a small business and they do not have me on the "books" - meaning they are not paying pay roll taxes or deducting taxes from my paycheck. They pay me every two weeks by check. I'm worried now I have been here for a year and it's time to file my taxes. I do not have a W2 form with them...

My employer forgot to withhold taxes [ 6 Answers ]

CA (california) increased tax rates last year. Today my employer told all of us that they forgot to adjust to the new rates and that the employees will most likely not get a refund this year, but rather might have to pay instead FOR THEIR MISTAKE! Do we have to pay? Doesn't the employer have to...

My employer forgot to withhold FICA taxes for me [ 8 Answers ]

I have been working on H1B visa for the last two years. I recently discovered that as H1B I still need to pay FICA (social and medicare) tax. But my company did not withhold these taxes for me for two years now. What should I do? Am I required to pay the prior missing FICA taxes? Will I be...

Employer did not withhold Georgia State Taxes [ 6 Answers ]

I just discovered my employer has not been withholding Georgia state taxes. They have been withholding all other taxes. Since we don't receive a pay stub each payday, I retrieved my first pay stub online and missed it. I haven't pull any others since the direct deposit was the same each time...

View more questions Search