A mobile workforce is great for productivity, but employers should be aware of their responsibilities to withhold income taxes in other states when their employees work there. To help employers sort through the complexities, NJBIA has prepared a new Fast Facts entitled, Multi-state Tax Withholding Considerations.
Fast Facts are free to NJBIA members. Go here to download your copy (password required).
New Jersey employers that require their employees to travel to New York, for instance, may have an obligation to withhold New York income tax. Requiring employees to travel to Pennsylvania, however, may trigger income tax withholding at the commencement of services in the state.
This Fast Facts attempts to help employers understand some of the risk and complexities with nonresident withholding and how to address potential challenges when trying to become compliant.