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?
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?
I believe you would only withhold AZ taxes on the individual who lives and works completely in AZ.
Captain Forest has it right.
You withhold in the states where the employee works and where he lives.
In this case, it's Arizona!
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