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It’s based on where you live not where the company is with the exception of you line in Nj but work in NYC. Otherwise payroll taxes are based on where you live.
I always thought it was based on where you live.
You get taxed based on where the employer withholds. Some companies can withhold in multiple states. Otherwise it depends on what the rules are w the each states. Some states have reciprocity with each other where you get credit for what is being withheld. Others will end up having you pay double.
Eg NY taxes on where the company is based. WI taxes based on where you are when you earn the money. So in that situation, you’d need a very good accountant to get you out of paying both.
If the agency has a sister agency in the state where you live, they can also pay you through that agency. Definitely makes it easier at tax time. (I know a few people who’ve had it done that way.)
So this is actually a very complicated question, made even more complicated by remote work.
By the broadest understanding of the how the determination is made, it is the state where you are physically located while you are performing the work. But if you live in one state and work in another, you could be taxed twice unless there are reciprocity laws in place, or your company doesn’t have nexus in the state where you live.
The “where you are physically working” part is the interesting bit, because if your company has nexus in a state that you travel to, temporarily, you are supposed to pay that state’s taxes on the money you earn while you are physically working there. If you file that state’s return, you’ll likely get all or most of it back as a non-resident, but companies are still required to keep track and pay taxes appropriately. As an example, NBA players file tax returns in about 20-25 states a year, because they earn income in every state they travel to play in, and their employer has nexus in every state as well.
Rising Star
Where the company is located.
I was working remotely at home for 2 years in NJ but b/c the HQ was in NYC, my earnings were being taxed by NY state + the city.
It depends! NYC is an exception to a lot of other states
The way it was done when I lived in Iowa and worked in MO was they took out both and then I ended up getting a refund from one. It was the strangest thing.