State Withholding on Non-Resident Employees: What Controllers and Payroll Managers Need to Know Now

In today’s mobile workplace, an increasing number of employees work outside of their employer’s office and/or outside of their resident state. Whenever your employee provides services in a state away from their home base, it will give rise to different withholding requirements in your payroll/financial operations.

You will need to ask whether these employees are subject to the non-resident state’s income taxes and in turn what are your employer responsibilities? Are you required to withhold? What about unemployment taxes, disability taxes, worker's compensation? Are there special W-4-type forms you need to acquire? Are there any reciprocity agreements that may help?

Eliminate confusion by knowing the facts. Join tax expert Jerri Langer for this intensive 90-minute webinar recording of non-resident tax withholding.

Revenue-starved states are becoming much more aggressive in taxing non-residents on the income they earn while working across state lines. States are concerned about employers and their workers performing services in their jurisdictions who are not paying their fair share of these taxes. One group they’re especially interested in is executives with long-term deferrals (such as stock options) who exercise these options in another state upon retirement.

Employers who are not aware of all the rules regulating non-residents could be at risk for non-compliance, and a target for income and unemployment tax audits done in tandem these days and possibly under-withholding penalties and interest.

Hear how to avoid these penalties in this webinar recording, where you will also hear:

• Clarification of state income tax withholding rules for resident and out-of-state workers
• Guidance on handling long-term earnings by non-residents (e.g., bonuses, stock options, restricted stock, and nonqualified deferred compensation)
• The correct application of de minimus rule exceptions—and why misinterpretation can be costly
• Taxing retirement income for employees retiring to states with no individual income tax (e.g., Florida, Nevada, Texas, etc.) and employees who have worked in several states or offices during their career
• Non-resident income tax audit red flags for every employer
• How states are working together these days in managing audits and the new role that the Internal Revenue Service is playing
• Telecommuter withholdings: understanding the double taxation conundrum
• How to be sure all legal loopholes are closed regarding reciprocal agreements
• What counts as "a day"for purposes of determining withholding
• Employer's full reporting requirements and recordkeeping obligations
• If a company begins to withhold nonresident taxes, how will it address the reduction in employees’ take home pay?
• Fundamentals of unemployment insurance and worker's compensation for out-of-state workers

Featured speaker:

Jerri Langer
Principal, Cokala Tax Information Reporting Solutions, LLC

Jerri Langer is a founding member of Cokala Tax Information Reporting Solutions and is a nationally recognized information reporting and withholding consultant who provides a wide range of tax advisory services to many Fortune 500 companies around the world. She received her JD and LLM in Taxation from the University of Florida - College of Law (1982) and is a member of the Florida and Michigan bars. She is currently a member of the IRS Commissioner’s Information Reporting Program Advisory Committee (IRPAC). This is her second IRPAC appointment; she previously served in 1999-2000 and was Subcommittee Chair on Legislation and Regulatory Matters. Jerri was the founding Government Relations Chair for the National Association of Tax Reporting and Payroll Management (NATRPM) and served on the NATRPM Board. Jerri is the author of Aspen Publishers’ Ohio Payroll Guide, co-authors Aspen Publishers’ California Payroll Guide and contributes to Aspen’s The Payroll Answer Book, all widely circulated publications.

Continuing Education Credits Available!