GLOBAL PAYROLL MAGAZINE
67
Washington, D.C.) will impose tax withholding on the employee hired. Nine states do not impose a state tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Residency: Typically, a taxing state determines tax residency based on the number of days the employee lives in the state. State employment tax requirements, however, generally follow where the employee works. If
the employee works from home, or at a location within the state they reside, the work state and the resident state are the same. However, the work state changes when an employee performs services in another taxing state where the employee does not reside. The tax authorities in the work state often require tax amounts to be withheld based on the income paid to the employee for work in that state.
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