reciprocity

YogiS · ‎November 21, 2018

Hi,

I want to understand tax withholding liability for state of work, where Work state have reciprocity with state of residence , however employee did not provide 'certificate of non residence' to employer.

For example:
OH, has reciprocity with IN if EE works in OH, and do not provides "certificate of non residence" . how the should be calculated,
1. 100 % tax withholding for both state (OH & IN)
2. 100% for OH and for IN upto the extent that it's withholding exceeds the amount withheld by the OH.

Or there should be any other way, Please advice

BettyJaneB · ‎November 21, 2018

Hi there, @YogiS.

Thank you for reaching us out today. I have some information to share about the state with reciprocity agreements in QuickBooks Online.

Your employee must submit the Certificate of Non-Residence so QuickBooks can record the accurate taxes that need to be calculated. At this point, QuickBooks Online Payroll doesn't support multi-state tax calculation. In this case, I'd suggest having your employee reach out to their state agency and ask for the requirements of possessing a Certificate of Non-Residence. That way, they can process and provide the certificate to you.

I got here a helpful article that you can check out about the states with reciprocity agreements: https://community.intuit.com/articles/1438773-employees-who-work-in-another-state.

That should do it! Please don't hesitate to let me know if you have further questions about this concern. I'll be around to help you out. Have a lovely day.

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