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lisakp1
October 29, 2024
Question

Can an employee pay their own state taxes if they live in WV and work in VA?

  • October 29, 2024
  • 1 reply
  • 0 views
I only have one employee that this would apply to.

1 reply

Candice C
Candice C
October 29, 2024

Good evening, @lisakp1. 

 

It's great to see a new face here in the Community! 

 

To let your employee pay their own state taxes, you would technically deduct it from their paycheck. However, I recommend review this guide that talks about how to manually pay the payroll taxes, which is something your employee could do: 

 

Pay and File your taxes

 

In the end, we do suggest looking over your information and taxes with your accountant to make sure all taxes are paid properly. 

 

If you have any other questions, don't hesitate to ask. I'm only a comment away. Take care! 

A
AWright73
October 30, 2024

I had the same question.  I have one employee who works remotely in another state.  She would also be willing to pay her own state taxes at the end of the year.  Your response does not make sense to me.  If we deduct her state taxes, we would be paying them for her.  Can she claim exempt from state tax and settle with her state at tax time?

Thanks for your help!

M
Mark_AG
October 30, 2024

Hi there, @AWright73.

 

Thank you for reaching out with your question. I understand that managing state taxes for an employee who works remotely in another state can be tricky, and I'm here to help clarify the process for you.

 

When an employee lives in one state and works in another, it's important to comply with state tax regulations. Generally, employers are required to withhold state taxes for the state in which the employee works. However, there are some considerations for remote employees and their state tax obligations.

 

  1. Check if there is a reciprocity agreement between WV and VA. Reciprocity agreements allow employees to request exemption from tax withholding in the work state (VA) if they live in the neighboring state (WV) to avoid double taxation.
  2. If such an agreement exists, the employee can file the appropriate exemption form (e.g., a reciprocity exemption certificate) to be exempt from VA withholding and have WV state taxes handled directly.

 

Ensure compliance by consulting with your payroll service or a tax professional to understand withholding requirements and best practices for multi-state employees.

 

You can also consider entering Federal form W-4 for your employees in QBO.

 

Thank you for using QuickBooks. If you have any further questions or need additional assistance, feel free to reach out. You're doing a great job managing your payroll and tax responsibilities, and we're here to support you every step of the way!

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