Withholding for Employees Subject to Reciprocal State Agreements
Small business payroll processing is tough enough. Adding even more complexity to payroll processing is the challenges that arise when you employ workers who do not reside in the state where your business is. Here's how to handle this particular payroll headache.
Income Taxes If You Work Out of State
If you live in a state that is different from the state where you work, which state do you owe income taxes to? Do you pay income taxes for the state where you live, or do you pay income taxes to the state where you work? Entrepreneurs responsible for payroll taxes need to understand the answer to this question.