College student employee living and working in one state but also living in another state while not in school
I have multiple college students working for me in my state and from time to time they fill out their tax paperwork to the state they live while not working here. When i load this out of state tax info under their W2 my system says i have multistate employees and then i'm charged extra. They want their tax paperwork at the end of the year to be mailed to their parents address.
So do i load their address they live in while here at college to avoid this?
Let me help provide information about employees who reside in a state different from your company. You can set up your employee's state withholding for at least one of the states, or probably both. These employees should give you a certificate of non-residence for the state where your business is located. Let me route you to this article for more information: Employees who work in another state.
There are some states that have reciprocity agreements. This means that the employee only pays taxes in the state where he lives. You can check out this article to verify if the reciprocity agreement can be applied in your state: State reciprocity agreements.
If your employee does give you a certificate of non-residence, we do not deduct state withholding (if any) for the employee's work state from this employee's paychecks. Instead, we give you the option of deducting state withholding (if any) for the employee's residence state.
As always, you can contact our Online Payroll Care Support if ever you need assistance in changing or adding your employees' locations to your account. They'll be able to pull up your account and help you with this particular situation.
I'm here if you have other questions about multi-state employees. I'd be glad to help however I can.