A question asked most frequently is, “how do I keep up with all the changes and differences between states?”
Do you have employees that live in one state and work in another?
They are called "interstate employees"
The employee will typically have to pay taxes in the state they live but payroll rules dictate they also pay income taxes to the state in which they work.
Bummer, right?
But there is hope. The employee may be able to file a return in their home state to receive a credit towards the balance they owe based on taxes they paid in their work state.
As a business owner, this can feel like a lot. Keeping up with unique state laws, reciprocal agreements, and regular updates to those laws can be overwhelming for anyone who isn’t fully focused on payroll.
Let the free online calculator help you in 60-seconds.
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