CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Noel Santos
Emmanuel A. Santos JD CPA, Incorporated
447 Sutter Street, Suite 714, San Francisco, CA 94108
Phone: 415-362-8921
Fax: 415-362-8924
Cell: 415-412-5839
Email: noel@eas-cpa.com
Website: www.eas-cpa.com
Your Business...Your Family...Our Concern
July 2021
July 2021 Client Profile
My business is located in Michigan, but I’m considering hiring remote employees who live in other states. How will this impact my payroll taxes?
You’ll need to withhold federal payroll taxes just as you would for your in-state employees. But you’ll also need to withhold state and possibly local payroll taxes in the state where your remote worker lives.
This will require you to register your business with that state’s revenue department so you can follow their filing schedule and pay the tax on time. You’ll also need to register your company with that state’s unemployment department to pay unemployment tax.
It can get even more complicated. Now your company may also be subject to that state’s sales tax laws. Each state has different rules for when you meet the minimum requirements of doing business there. And having an employee can be the trigger.
Similarly, having an employee in another state can trigger corporate income tax for your company.
Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.