U.S. citizen employee remotely work in foreign country-set federal & state tax

HS30 · ‎March 17, 2022

The company has employees who are U.S. citizens and work remotely in Asia. For my understanding, these employees are still subject to Federal tax.

1, how about state tax? they work aboard and the QuickBooks requires to choose a state worked and state subject to withholding when to set up the employee tax.

2, The company is located in CA. When I choose CA as the state worked, it shows SUI and SDI. Does the company need to pay for these?

3, if I choose CA as a state subject to withholding and Don't withhold as filing status, is that ok for these employees?

Kurt_M · ‎March 17, 2022

Thanks for dropping by here in the Community, @HS30. I'll answer your QuickBooks Desktop federal and state taxes concerns.

For your first question regarding state tax, you can consider reaching out to your state agency. This way, they can check to see what option works best in this situation. And for your second question. Yes, you're right. Your company needs to pay for SUI and SDI. Lastly, only the state agency can confirm if you need to file and pay for your state tax.

You can refer to this article to know where you can check for the state agency website.

Additionally, here are some articles to help you in the future:

Don't hesitate to get back to me if you have other QuickBooks-related queries. You can notify me by clicking the REPLY button below. I'll make sure to keep an eye for your response. Keep safe!

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U.S. citizen employee remotely work in foreign country-set federal & state tax

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