Need Help Navigating the Complexities of Staffing Across State Lines?
Businesses of all sizes that operate interstate are subject to a significant regulatory burden with regard to compliance with non-resident state income tax withholding laws, which can take operating resources away from these businesses. Forty-one states impose a personal income tax on wages and partnership income, and there are many differing tax requirements regarding withholding income tax of nonresidents among those 41 states. The amount of research that goes into determining what each state law requires is expensive and time-consuming. The recordkeeping can be burdensome, particularly since a state’s withholding threshold can be as low as one day’s work in another state. Is your business operating between states or planning to in the future? Todd & Co. CPA Group, Ltd. is a member of the American Institute of CPAs, the professional organization supporting CPAs, which advocates on behalf of CPAs and their small business clients. Our membership helps us keep our clients current on new developments, so we can help you navigate through state laws and determine withholding requirements for mobile staff. Contact us today (757) 926-4109 if you need help determining payroll and income tax withholding rules for your out-of-state operations.