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mingoglia
08-27-2008, 04:43 PM
Just curious if anyone has any experience with this. I currently have United Health Care for my business. I'm in the process of hiring an employee who lives in Nevada. I'm wanting to get her and her kids on my health insurance. I was initially going to 1099 her to make things easier, but in order to be on my insurance she has to be an actual employee. The gal that does my books said she called the state and they said this employee would have to pay Arizona state income tax. This doesn't sound right to me. Anyone have any experience on this? I would think I would with hold federal, and then she would be responsible for state tax (where in NV they have none).

Mike

cdhowell
08-27-2008, 05:47 PM
When I travelled construction I was taxed in whatever state I earned the money in. Sounds correct to me.

mingoglia
08-27-2008, 06:15 PM
When I travelled construction I was taxed in whatever state I earned the money in. Sounds correct to me.

Yea, I've spoken to a couple of others friends of mine with businesses and they've said the same. She supposedly spoke to "the state" and they said we had to pay Arizona tax... but then again the people that answer the phones probably aren't the sharpest tools in the shed.

MadCarlisle
08-27-2008, 11:04 PM
Mike -

Typically the state of residence and work are the state that the taxes are paid. With Nevada being both, you would be hard pressed not to pay those taxes. Look at your workers compensation coverage; they will classify the employee as a Nevada based employee. BTW - if your with SCF they don't write in Nevada.

If her home was Nevada and she traveled across state lines to AZ for her job, then she would be classified as an AZ employee for payroll taxes and work comp insurance.

Mark