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

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