Nonresident withholding question, client switched offices

Technical topics regarding tax preparation.
#1
Posts:
22
Joined:
21-Jul-2015 8:54pm
Location:
nyc
Hi, I have a client that lives in NJ and works in the NJ office of his firm. He works one day per week in the firms NYC office. Should his firm be withholding NY tax? Short background is he historically worked in the NYC office but when COVID hit he was working from home (resides in NJ) most of the time. Starting 2021 he was able to get a transfer to NJ as his primary office. He still works one day per week in the NYC office, and still works from home (NJ) 2 days per week. So he is essentially working in NJ two days per week, from home in NJ two days per week, and one day in NYC.



Thanks!
 

#2
Posts:
1362
Joined:
22-Apr-2014 9:07am
Location:
Chicago, IL
Last time I checked NY required withholding if a non-resident employee worked 14 days or more in the state. It definitely sounds like they should be withholding tax at least on the one day per week he is spending in the city.
 

#3
Posts:
20
Joined:
29-Nov-2021 10:54am
Location:
NC
NJ doesn't have reciprocity with NY. They should withhold NY taxes from his paycheck. He will file a NY nonresident return, and a NJ return claiming taxes paid to other state (NY taxes).
 


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