Withholdings: Which State?

[apel]

I've got my first few paystubs from my job here in the US and there's something I'm wondering about. I live in California and my job site is here but my employer is based in New Jersey

Comments

[itsactual]

I was working in New Jersey for a California based company and they were taking out California taxes, I contacted my HR rep and they fixed it.

[apel]

OK. Guess that's what I'll do.

[doe_witch]

It's true, you should be paying California taxes. That's one reason my family moved to New Hampshire, actually; my dad got a job transfer from Virginia to Massachusetts, but we found a town near the border in New Hampshire to live in so that my dad wouldn't have to pay income taxes (NH has no income tax). It's a tactic that many use.

[apel]

Sneaky. Not that I'd ever leave the Bay Area in any way except feet first. :-)

[marlborobell]

You'll still pay Massachusetts tax on your earnings in MA, even if you live in NH.

On the other hand, if your dad works from home occasionally, he can avoid paying MA tax for those days. That's the usual dodge for people who live in NH and work in MA (and there are many many of them!) Personally, given NH's crushing property taxes, I wouldn't do it because you get the worst of both worlds!

[doe_witch]

Oh, yeah, my dad does work at home. So the property tax is the only one he has to deal with.

[pygmymetal]

It depends on whether California and New Jersey have taxation reciprocity with each others state government.

Your best bet is to call your company's payroll department and ask them if it was a mistake. They know the taxation rules.

In the "short bus" sense

[apel]

My company is, how to put this delicately, not quite like other companies. But I'll talk to them. They _should_ know the taxation rules.

[dionysia]

You should be paying the taxes relevant to your work state. So CA.

[apel]

Thanks. I'll get on their case.

[sparkofcreation]

As I remember, New Jersey has a weird resident/non-resident thing so essentially you'll have to file in both but you get a credit back from one or can deduct one state's taxes from what you owe the other.

I lived and worked in NJ for many years but only ever had to deal with it after I left the state and got some payment from NJ after I'd moved away.