Dealing With Multi-State Payroll Issues
Webinar Details $219
- Webinar Length: 100 Minutes
- Guest Speaker: Dayna Reum
- Topic:   Human Resources, Taxation and Accounting
- Credit:   HRCI 1.5, SHRM 1.5, CPE 2.0, RCH 1.5
Understanding how to calculate tax for employees in 2 or more states can be confusing. Plus what state laws for payroll need to be followed when employing employees in more than one state.
The laws in each state and the tax guidance on how to determine taxation when employees live in one state and work in one or multiples states will be discussed. Concerns for employees that travel for work will be discussed, other state laws that affect payroll taxation will be discussed. This Webinar will cover withholding rules, reciprocity and residency definitions. To better understand the rules covered case studies will be reviewed.
- Reciprocity Agreements
- Resident/Non Resident Withholding Rules
- Evaluating taxation for multiple states
- What wages are subject to taxation?
- Withholding compliance issues.
- State Unemployment Insurance
- Traveling Employees
- Administrative Concerns
- HR Concerns
- Local tax residency rules
- Case Studies
- You will be able to recognize which state you pay unemployment taxes to.
- You will be able to explain resident/non resident withholding rules
- You will be able to explain reciprocity agreements
Format: Recorded webcast
Instructional Method: QAS Self Study
NASBA Field of Study: Accounting
Program Prerequisites: None
Advance Preparation: None
- Agenda 00:01:32
- Withholding Challenges 00:10:52
- De Minimis Threshold 00:15:40
- Residency ? 00:19:34
- Domiciled 00:23:29
- Reciprocal Agreements 00:27:35
- Reciprocal Agreements Currently in Place 00:30:49
- Reciprocal Agreements Currently in Place (cont’d) 00:34:49
- Resident/Non-Resident Withholding Rules 00:36:15
- Resident/Non-Resident Withholding Rules (cont’d) 00:41:42
- COVID-19 Relief 00:44:40
- Evaluating Taxation for Employees Working in Multiple States 00:47:35
- What Payments are Subject to Tax? 00:49:11
- Withholding Compliance Issues 00:54:44
- State Unemployment Insurance 00:58:33
- State Unemployment Insurance (cont’d) 01:03:45
- State Unemployment Insurance (cont’d) 01:06:59
- COVID-19 Relief SUI 01:10:33
- Traveling Employees - Tax Turtles 01:13:09
- Traveling Employees - Away From Home 01:14:10
- Administration Concerns 01:15:33
- Administration Concerns (cont’d) 01:20:28
- Human Resource Issues 01:21:16
- Local Tax Residency Rules 01:22:29
- Useful Resources 01:23:40
- Case Study #1 01:24:43
- Case Study #2 01:25:26
- Case Study #3 01:27:27
- Case Study #3 (cont’d) 01:28:08
- Case Study #3 Conclusion 01:28:46
- Other COVID-19 Relief 01:29:13
- State Wage & Hour Pay - Frequency of Pay 01:30:01
- State Wage & Hour Pay - Method of Payment 01:30:55
- State Wage & Hour Pay - Method of Payment (cont’d) 01:31:23
- State Wage & Hour Pay - Pay Statements 01:32:55
- State Wage & Hour Pay - Deductions from Pay 01:3:31
- Questions ? 01:34:11
- Presentation Closing 01:47:19
- Common-Law Test 01:00:45
- COVID-19 00:44:45
- Deferred Compensation 00:50:45
- De Minimis Threshold 00:15:43
- Domicile 00:20:01, 00:22:36, 00:36:40
- Fringe Benefits 00:12:44
- IRC Section 162(a)(2) 01:13:16
- Nexus 00:43:12, 00:45:22
- Reciprocal Agreements 00:27:50, 00:30:55, 00:41:56
- Tax Turtles 01:13:16
- Wage 00:49:24
COVID-19: COVID-19 (coronavirus) is an illness caused by a virus that can spread from person to person. The virus that causes COVID–19 is a new coronavirus that has spread throughout the world. COVID-19 symptoms can range from mild (or no symptoms) to severe.
Common Law Test: The Common Law Test is a guide used by the IRS to determine if a worker should be classified as an employee or an independent contractor. The standard Common Law test indicates a worker is likely an employee if the employer has control over what work is to be done and how to get it done.
Deferred Compensation: Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a later date after which the income was earned. Examples of deferred compensation include pensions, retirement plans, and employee stock options. (en.wikipedia.org)
Domicile: A person's fixed, permanent, and principal home for legal purposes.
Fringe Benefits: An extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc.
IRC Section 162(a)(2): There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including traveling expenses (including amounts expended for meals and lodging other than amounts which are lavish or extravagant under the circumstances) while away from home in the pursuit of a trade or business.
Nexus: The term nexus is used in tax law to describe a situation in which a business has a "nexus" or tax presence in a particular state or states. A nexus is basically a connection between a taxing jurisdiction, like a state, and an entity like a business that must collect or pay the tax.
Reciprocal Agreements: A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.
Tax Turtles: When a taxpayer is constantly on the move (such as long haul truck drivers and other drifter types); quite often, these taxpayers are considered “tax turtles” in U.S. tax law. A tax turtle is someone who carries their home on their back because they are in constant motion.
Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.