Many employers have
multi-state withholding and unemployment taxes. As workplace dynamics continue
to develop and change, more employers will be faced with managing
withholding for several states. Here are a few tips from our payroll team to help you navigate the addition of multiple states.
There are several items
to consider when thinking about whether you may need to add another state. The most common reasons include:
·
Base of operations
·
Employees working
from home
·
Employees who are
residents of a neighboring state
Adding States Can be a Challenge
Adding a new state
requires research into the laws governing state withholding and unemployment,
as well as additional taxes such as local, county, and school district. This can be difficult and time consuming. There is no one size fits all for adding new states. The laws can vary a great deal.
Employers must apply
for tax accounts in order to be assigned an account number, deposit schedule, unemployment
rate. These accounts should be set up
prior to the first withholding and/or accrual of any taxes.
We're Here to Help
As part of our commitment to take the worry away, we are
here to do the research and assist you by getting the right
information.
Employers should
communicate with their payroll account manager to make sure that set up is
accurate and timely for both the taxation and affected employees. This communication allows your account
manager to carefully review the changes to assure accuracy. It also reduces the chance for errors on
quarterly reports.
Any Other Questions?
I am also available
to answer any questions that you may have regarding payroll taxation
items. I won’t always have the answer,
but I am always willing to find it for you. I appreciate the opportunity to serve you.
The Author: Kathy Krebsbach, FPC
Payroll Tax Compliance Specialist
KKrebsbach@abg-mn.com
Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.
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