ira smilovitz <
[email protected]> wrote:
Stuart O. Bronstein wrote:
I have a question about a business with out of state employees. The
business has no office, assets or other contacts with those other
states, either temporarily or permanently.
My understanding is that in this kind of case, an employer is not
required to do withholding either for state income tax or or other
state charges like workers' compensation or unemployment.
Am I right about that? I have been told that withholding for the
other states is required.
The question is a legal one (and I am not an attorney) and the answer
is dependent on state law. I know that some states will maintain that
by having an employee within that state, the employer has established
nexus for all relevant purposes.
Thanks Ira. I am an attorney, and I'm asking because I'm curious about people's experience with this. There is a constitutional prohibition
against one state imposing laws on citizens of another state if they
don't purposly do something to bring themselves within the jurisdiction
of the other state.
In this case the workers are working in the employer's state, but have
home addresses in another state. Their payrole company is telling them
they have to withhold for unemployment and workers' comp in the state of
the home addresses. That doesn't strike me as particularly legal.
--
Stu
http://DownToEarthLawyer.com
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