First Employee
“I have employees who work in one state but live across the border in another, which state's specific withholding tax rules apply to their paychecks?”
Payroll withholding for employees who live in one state and work in another often depends on the work location, the employee’s residence, and whether the two states have any reciprocity or special withholding arrangements. The answer can also vary based on where the employer has payroll registration and how the employee’s wages are sourced for state tax purposes. In some cases, additional local tax rules or resident credit considerations may affect the final result. The specific state pair involved, the employee’s job duties, and the employer’s filing setup are usually the main factors that shape the withholding treatment. A targeted review with a CPA can turn the uncertainty into a clear next step.
In your 60-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“Should I pay someone as a 1099 contractor or an employee for tax purposes?”
“How do I know if I should hire someone as a contractor or employee for taxes?”
“I am hiring my first worker, should they be 1099 or W-2 for tax reasons?”
“What changes on my taxes if I use a 1099 contractor instead of an employee?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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