Why is multistate payroll compliance difficult? It is because there are at least three important situations of multistate taxation where there are different rules for different states:
- An employee could live in one state and work in another state, or work in two or more states simultaneously
- Organizations could have businesses or business operations in more than one state
- There are different reporting requirements for all the states in which the company’s employees work or live.
In such instances, multistate payroll compliance rules require a company to withhold the income tax that applies in that state and pay its payroll taxes.
Important areas of multistate payroll compliance
The payroll professional has to be aware of several aspects of multistate taxation. These are spelt out in Nexus, the Federal program of the Multistate Tax Commission that seeks to be a bridge between the taxpayer and the tax authority. Nexus is aimed at smoothening multistate taxation norms. Multistate payroll compliance essentially means taking cognizance of the following factors:
- The ways by which an employer’s liability is determined
- Whether disability insurance of the State is done through an insurance company or in the form of a payroll deduction
- Whether the state is in compliance with the IRS Code for taxing Section 125 plans
- A clear idea of what differences exist between different states of various items like Form W-4 equivalents, resident and non-resident taxation, and state unemployment insurance and other related matters
- An understanding of which state to pay the State Unemployment Insurance (SUI) tax to and to which state to pay the income tax for a non-resident who is working in the state.
Gain thorough learning on how to meet multistate payroll compliance requirements
Want to stay clear of the confusions and complexities of multistate payroll compliance? Then, a webinar from TrainHR, a leading provider of professional trainings for the human resources industry is the answer to this problem. Dayna Reum, Payroll Tax Manager at PetSmart Inc., who has been heavily involved in the payroll field over 15 years, will be the speaker at this webinar. To gain understanding of how to wade through the complexities of multistate payroll compliance, please register for this webinar by visiting http://www.trainhr.com/control/w_product/~product_id=701724?hr-seo
A clear and deep understanding of multistate payroll compliance
At this webinar, Dayna will offer a way to better understand the core of the topic of multistate payroll compliance: The laws in each state and the tax guidance on how to determine taxation when employees live in one state and work in another, or for employees that work in multiple states for travel for work.
She will also take up other state laws that affect payroll, as well as offer understanding of the concerns and issues the Department of Labor (DoL) has for multi-state employers like pay stubs and method of payment.
At this webinar, Dayna will cover the following areas:
- Residency
- Reciprocity Agreements
- Resident/Non Resident Withholding Rules
- Evaluating Taxation for Multiple States
- What Wages are Subject to Taxation?
- Withholding Compliance Issues
- State Unemployment Insurance
- Traveling Employees
- Administrative Concerns
- HR Concerns
- Local Tax Residency Rules
- Other Multi State Payroll Concerns (DOL)
- Case Studies.
https://www.forbes.com/sites/peterjreilly/2015/06/12/why-is-multi-state-tax-compliance-so-hard/#613e193c6d99
http://bridgesdunnrankin.com/multi-state-taxation/
https://www.bgdlegal.com/news/2011/08/01/articles/income-tax-nexus-101-can-that-state-really-impose-a-tax-on-my-company-s-income-really/
https://justworks.com/blog/hiring-remote-employees-in-a-new-state
http://www.askamanager.org/2016/04/why-its-complicated-for-your-employer-to-let-you-work-from-another-state.html
