In what state should taxes be witheld?

CarolL1999

We have just hired a person who lives in VA and will be moving to RI by the end of September.   She will be telecommunity, with occasional visits to the HQ, until she moves.  Can we start withholding RI taxes now?  We are not registered to do business in VA and would have to do so in order to withhold state taxes.  Costly and time consuming for one month.

 This is probably a tax/legal question but I wondered if anyone had any experience in this.

 

Thanks!

DrewH

My understand has always been that where the employee actually lives is irrelevant. If I live in TN and drive to work in KY, I'm being charged KY income tax because that's where I work.

I think you are good to start withholding RI tax.