Hello,
Do you know if NY state employers must withhold state taxes for remote/hybrid workers in both NY state and the other state? I know that NY for sure because of the employer convenience test but what about a fully remote DC employee and a hybrid PA employee.

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If you never work in NY, you don't have to pay/withhold NY tax. That's determined annually. 1 day per year in NY can be enough to trigger tax obligations.

Employer will still withhold if that is the only reason.

NY does have an exception to when an employer withholds as the convenience of the employer doesn’t apply. That’s unlikely to be hit by anyone in the tri state area.

You will want to assess each state individually. Every state has different rules. You will look at the state laws where the employee is physically present when performing their job duties. Some states have a grace period before withholding is required (example: if you work there 3 days of the year, you don’t have to owe or withhold). Not every state has a grace period. You need to consider income tax withholding requirements as well as unemployment tax owed by the employer. Employer will only owe unemployment tax in one state per employee, but depending on how many days worked in each state and other factors, the employer needs to figure out which state is the correct state for that employee. Your question is a loaded one, if you can’t tell. I would estimate at least 10 - 12 hours per state if you haven’t looked at this area before because the information can be complex depending on the state. Good luck!

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