Post a new topic
    3 Replies Latest reply on Nov 3, 2010 10:20 AM by hconnections

    Out of state payroll

    likwid25 Newbie
      Hi i have a question that i was hoping someone could help me out with.. I currently live and work in massachusetts.. At the end of this month i will be moving back to Louisiana and will be staying on with my current company, working from home.. What i need to know is will i need to file a out of state tax return with MA and also file in LA..? Or can i just file an out of state tax return with MA..? Also, what is the tax obligation for the company i work for..? Do they need to file to pay payroll taxes in LA..?
        • Re: Out of state payroll
          hconnections Adventurer
          Hi likwid25. Okay, for this upcoming tax filing (the 2010 tax return), you will need to file in two states because you will be considered a part-resident of Massachusetts and a part-resident for Louisiana. So you will file a part-year resident tax return for both states. But beginning 2011, should you remain in Louisiana for the entire year, in 2012 (when it's time to file your 2011 tax return) you will only need to file one state return with the state of Louisiana.

          I believe your employer WILL have to withhold taxes and have employer tax obligations to the state of Louisiana but they should call the Department of Revenue at (225) 219-7462 to be certain.

          Hope this helps.

          If you want to know more about how to keep more of what you make, visit me online at www.hardgeconnectionsblog.yolasite.com. On my main website, you can use free financial calculators, free resources and more at www.hardgeconnections.com.

          --
          Ktasha Nicole Hardge
          Tax Professional and Owner
          Hardge Connections, LLC
          "I service the entire U.S."
          hardgeconnections@gmail.com
            • Re: Out of state payroll
              likwid25 Newbie
              Thank you for the info.. Now that brings up one more question.. If i were to be paid under 1099 wages instead of W2 would my employer still have the same tax liability in LA..?
                • Re: Out of state payroll
                  hconnections Adventurer
                  likwid25 you are most welcome. Okay working under a 1099 is totally different. You are considered an independent contractor (a/k/a a self employed taxpayer) and the company has no employer tax obligations where you're concerned at all. You will be responsible for paying your own taxes and I usually advise my clients to pay estimtated quarterly taxes so you are not surprised by the tax bill when you file your annual 1040.

                  As a self-employed taxpayer you will be responsible for self-employment taxes. The good thing, though, is that you will legally be able to claim tax deductions for many of your expenses. It will be in your best interest to keep accurate records and bookkeeping in order to track your income and expenses. The disadvantage many self-employed taxpayers have is NOT knowing what is tax deductible. If you'd like, email me at hardgeconnections@gmail.com to get signed up to my free newsletter that will help you with all this type of information and much more.

                  Hope this helps.

                  --
                  Ktasha Nicole Hardge
                  Tax Professional and Owner
                  Hardge Connections, LLC
                  "Servicing the entire U.S."
                  Phone (866) 236-8330
                  Fax (866) 225-3943
                  Website http://www.hardgeconnections.com
                  Blog http://www.hardgeconnectionsblog.yolasite.com
                  Free Small Biz Bookkeeping Tips http://www.outsourcedbookkeeping.info