Viewing a single comment thread. View all comments

adepssimius t1_itnh6l6 wrote

Reply to comment by kingtitty101 in Do you have to pay mass income tax if you are in NH? by pbrontap

It's not necessarily a tax credit. In general, excluding pandemic emergency orders, if you don't physically work in a state or live in a state but the company you work for is in that state, you don't file taxes with that state and taxes are not withheld for that state.

2

kingtitty101 t1_itobz52 wrote

Yes, but MA automatically takes state taxes out. Each year, people who work at home in Nh are eligible to apply for a tax credit.

1

adepssimius t1_itpj6mt wrote

MA should not take any taxes out automatically if the company has you set up correctly.

2

kingtitty101 t1_itpkpi6 wrote

I work for the treasury department. I think they know how to set up payroll correctly lol.

2

adepssimius t1_itpq77v wrote

> Generally speaking, when you pay a remote employee, you pay the local taxes in the state where the employee works.

> If your employee works in the same state your company is registered in, you’ll withhold state income taxes and pay state unemployment insurance (SUI) tax in this state. You may also need to withhold local income tax from their paycheck.

> What about remote employees working in different states?

> Your company will need to register with the tax agencies (state and possibly local) in each state it has remote employees. You may also need to register with the labor/unemployment agencies in each locale too.

> You’ll then be required to withhold taxes in the states where your employees work.

https://weworkremotely.com/how-to-set-up-payroll-and-taxes-for-remote-workers

1