Multi-state employees and reporting

Technical topics regarding tax preparation.
#1
champ  
Posts:
2
Joined:
27-May-2014 7:04am
Location:
Oregon
I have an Oregon employer who is hiring California employees to performs services in California.

How do I handle unemployment tax?

Please don't refer me to a website. I already tried that. Seems to say that since unemployment is either a federal program or there are reciprocal agreements that allow tax to be paid in only one state.

Thanks
 

#2
Posts:
5868
Joined:
23-Apr-2014 9:30am
Location:
**********
CA
 

#3
Posts:
794
Joined:
21-Apr-2014 11:29am
Location:
California
So I won't.....

Employees physically performing services in CA need to be reported as CA wages. From all I know - CA s not going to provide a free pass on this unless their time in CA falls under the de minimis test which I don't remember off the top of my head - something like less than 10 days but don't quote me on that. Call the EDD comes to mind but no link to the web site.......

Employees will also need to file a N/R CA return if they have CA wages.
 

#4
Posts:
543
Joined:
22-May-2014 1:38pm
Location:
Texas
I'll take it one further. If the employee doesn't live in CA, should they have CA state tax withholdings? I would think yes since they will need to pay for the time they were there.

But I agree with everyone. You will need to set up CA UI account and pay in. The 940 will be fun since you have two states coming together.
 


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