This program discusses the handling of state taxes when an employee lives in one state and works in another or works in two or more states simultaneously. We start with what taxes to be on the lookout for including state income tax, disability insurance, unemployment insurance, and the various local taxes. From this point we discuss the conformity with the Internal Revenue Code for the states as well as the proper handling of supplemental taxation. Working with these basics we discuss how to determine if the company is an employer in the state and therefore required to withhold or pay taxes. We then work through the definitions of resident and nonresident and how that affects the withholding or payment of taxes. But the proper withholding of taxes also depends on whether there are any agreements between the various states in question so at this point we discuss reciprocal agreements and how they affect the withholding of state income tax. To ensure proper tax withholding we briefly discuss employee withholding certificates or what is commonly known as the Form W-4 equivalent for the states. This discussion also includes other forms that would need to be completed including nonresident forms and military spouse exemption forms. From this point we concentrate on how to determine the taxable wages for each date if the employee works in two or more states. We discuss the three methods available for the allocation of wages. Withholding of taxes is not the only compliance issue when it comes to multistate employees because it is imperative that the employees’ wages be reported correctly. We work through examples of how to report on Form W-2 for an employee who lives in one state and works in three separate states. Income tax withholding however is not the only tax that needs to be determined when handling multistate taxation, the state unemployment insurance must also be determined. We discuss how to determine which state to pay SUI or state unemployment insurance to when an employee lives and works in two or more states. And finally, we conclude the course with a discussion of other areas that are affected by an employee working in more than one state, namely, wage and hour law and garnishments.

Learning Objectives
  • Explore the various taxes required by different states including income tax, disability insurance and the plethora of local taxes that may apply to wages paid.
  • Discover how to determine state withholding liability.
  • Identify and contrast the difference between a resident and a nonresident of a state and how that affects state income tax withholding.
  • Explore which states require the use of their own Withholding Allowance Certificate and which state allows either theirs or the Form W-4 to be used and which states do not have a form.
  • Identify which states follow the Internal Revenue Code and which version.
  • Explore the requirements for reporting wages for multistate employees on Form W-2.
  • Identify the four factors that are used to determine state unemployment insurance liability.
  • Identify the states that have reciprocal agreements and explore how those agreements affect taxation.
Last updated/reviewed: August 5, 2023
94 Reviews (366 ratings)

Reviews

5
Anonymous Author
This course provided an excellent overview of properly handling multistate employee tax withholding and reporting requirements as well as addressing the many nuances arising from lived in/worked in scenarios. The facilitator presented content that was both informative and easy to understand, and the supporting materials were amazing!

4
Member's Profile
A good refresher on how to determine the correct state withholding for a multi-state employee. I would recommend not trying to memorize the rules for each state since they change so often, it is better to use the website that Ms. Lambert provided or the states web site whenever in doubt.

4
Anonymous Author
Good speaker. Provided good resources. It's a little difficult to discuss this topic without going into detail on certain states and ignoring others. The states she chose seem to be the more complicated ones rather than how the state taxation works on a majority of states.

5
Anonymous Author
This course is comprehensive is a comprehensive view into the complexities of multistate employee payroll taxes. It provides great information, examples, and resources. The instructor is extremely knowledgeable and provides excellent examples to illustrate the concepts.

5
Member's Profile
This was a fantastic course on how to handle questions and complications that arise due to employing employees who work in multiple states throughout the year. The instructor provided a lot of great information with state specific charts, data and examples.

5
Member's Profile
What a tough subject - great overview. There are so many "on-offs" that it would be easy to get lost in the mire, but instructor does a terrific job of emphasizing pitfalls, guiding principles, etc. Especially loved the microchip of employees idea :)

5
Member's Profile
The is a very informative course. The way in which the concepts are presented is helpful and it is easy to understand. The instructor was engaging and was able to keep this interesting. This course could be useful across many levels of an organization.

5
Anonymous Author
Very good information on Interstate agreements and Multi state Payroll best practices. Great maps of States participation in different categories. Will be a great go to resource in addition to other pointers furnished.

5
Member's Profile
Thanks. I learned a lot. A lot of new knowledge makes me happy today. I like it very much. Some knowledges are not required by the CPA exams but are required by the practice. This a perfect lesson to make it up.

4
Member's Profile
I really liked this topic and the way the instructor covered the topic. She gave a lot of examples and visuals. Her layout of the materials and colors used really added to the absorption of the material.

5
Anonymous Author
The course contains many of the multi-state payroll issues. The payroll website provided at the end is a very useful resource. I will definitely refer to the website next time I have payroll tax question.

5
Member's Profile
Ms. Lambert has such an impressive background and has a great delivery to make the material easy to understand. The material is practical and definitely could be applied to any organization. Well done.

2
Anonymous Author
Presentation was overly convoluted. Would have been better to start with concepts and build up from there. Instead it was all about forms, nuances, and exceptions without providing a meaningful foundation

4
Anonymous Author
This course is a comprehensive look at multi-state taxation which can be a very complicated subject. The examples provided were great. As always, the instructor is clear and knowledgeable on the topic.

5
Anonymous Author
This course had great information. We have locations in two states and have employees that live in one state and work in one or both locations. I think I can use this information to guide the process.

5
Anonymous Author
Great presentation and refresher on Multistate taxations. Valuable supporting materials as well. Would highly recommend to anyone processing payroll in several states. There is a lot to look out for.

4
Member's Profile
This course provided good coverage of multi-state employee tax withholding and reporting requirements and covered lived in versus worked rules. The supporting materials are great references!

5
Anonymous Author
This was a very informative and helpful course. I would love to see a new version of this published, just in case any information has changed in the states since this was originally made.

5
Member's Profile
I liked the presentation and format as well as some examples given. Instructor seemed to know her stuff! Course provided a good foundation for a more advanced course. I would recommend it.

5
Member's Profile
Great course covering multi-state employees! It would be complicated to remember which states require withholding, so it recommended to research the individual states for clarification.

5
Anonymous Author
It's clear the instructor knows this subject inside and out. She provides excellent examples to bring clarity to sometimes confusing topics. Very memorable presenter.

4
Anonymous Author
Very useful for someone either getting into payroll or those that are a bit more seasoned. Lots of nuances to deal with when employing individuals in various states.

5
Member's Profile
It is a really well-summarized and educational course. My only complaint is that it is seriously outdated. I believe it's recorded in 2016 and I'm taking it in 2021.

5
Member's Profile
Good overview of a complicated topic. Most importantly helps you understand what to look for and where to look when an employee works in more than one state.

4
Anonymous Author
This course on multi-state tax withholding was interesting. It highlighted events and circumstances I wasn't fully aware of. Great refresh on the topic

4
Member's Profile
What a challenging test! A lot of specific information on states. Must pay attention to details. A very overall class on multistate taxation.

5
Member's Profile
This is an excellent refresher course. Please keep the materials as they are perfect for quick references. I will be keeping these materials.

5
Member's Profile
There is so much to learn here - I look forward to taking more classes from this instructor, who seems to know her subject material very well.

5
Anonymous Author
This an a great course! The instructor explains the rules and uses an example throughout the training to help you understand the rules.

5
Anonymous Author
This was a very informative course. The subject matter was presented clearly. I really think the slides are a good resource and support.

4
Anonymous Author
A lot was covered in the presentation. the presenter broke down the subject into digestible pieces making it more manageable to sink in.

5
Anonymous Author
This is a good class to take, multi-state reporting can be very complicated. I wish I took this before working in Employment Tax.

5
Anonymous Author
This is a very challenging area of tax law. this course explains things in a very useful way. Participates learn a great deal .

5
Anonymous Author
Instructor was well qualified. I appreciated her emphasis on getting payroll correct specific to the employee's circumstances.

4
Anonymous Author
Instructor very knowledgeable. Brought up things I had never even considered such as garnishments paid from two states, etc.

5
Anonymous Author
The material covered was very detailed and this session covered a lot of good information for both state and unemployment.

5
Member's Profile
Great course, especially when you are having confusion with the reciprocity agreements and what states to withhold or not.

5
Anonymous Author
Very well-organized presentation. Graphics were extremely helpful in explaining the varying state requirements. Well done!

5
Member's Profile
Very informative course. I wish it was updated annually though. All courses should indicate what date they were produced.

4
Member's Profile
it's great materials and resources, it's easy to understand and hope more quiz with explain will be much helpful.

5
Member's Profile
Great examples are taken in the webinar, pictures are used a lot to help unstand, good wording, nice lexture...

5
Member's Profile
This provided information on how to handle multistate employees tax withholdings and related issues correctly.

5
Anonymous Author
This was a great course on how to handle multistate employee tax withholding and related issues correctly.

5
Anonymous Author
Course was informative and I learned some new things I was not aware needed to be addressed in withholding

4
Anonymous Author
This was quite a bit of information to digest in a two hour period. I found this to be a difficult test.

5
Anonymous Author
This webinar helped in my daily activities. It was laid out well and contained very useful information.

5
Member's Profile
This course was extremely helpful. I will use this information at work, and I will reference it often!

4
Anonymous Author
Very informative with great examples. What I learned could be applied in my current position at work.

5
Member's Profile
Excellent instructor and very useful topic. I look forward to additional topics from this instructor.

5
Member's Profile
This was an excellent course. The presenter was very knowledgeable and gave several helpful examples.

5
Anonymous Author
Extremely helpful and insightful course on employee and employer responsibility and tax requirements.

5
Anonymous Author
very good refresher course - great trainer and content - would highly recommend to anyone in payroll

5
Member's Profile
Great examples, Vicki is great at explaining difficult concepts and makes them easier to understand.

5
Member's Profile
CLEARLY EXPLAINED AND TAUGHT, VERY INFORMATIVE, BUT COULD BE UPDATED WITH MORE RECENT ANNOUNCEMENTS

5
Member's Profile
I love taking courses from Ms. Lambert. She makes the subject matter clear and easy to understand.

5
Anonymous Author
Good information for a very confusing situation. Multi-state withholding can get very complicated.

4
Member's Profile
Great information provided and good handouts. Would love to see the material updated each year.

4
Anonymous Author
Useful information presented in a straightforward manner that is easy to follow and understand.

4
Member's Profile
State tax gets confusing fast! This course helped me with some of my current issues. Thanks!

5
Anonymous Author
difficult subject because so many states and so many guidelines. Vicki does a great job again.

5
Member's Profile
Very challenging and informative course on the laws of multistate payroll. Very informative.

5
Member's Profile
Very thorough review of state laws. Extremely clear and helpful for all payroll personnel.

5
Member's Profile
Clear and concise explanations of the many factors involved in multi-state taxation issues.

5
Member's Profile
Very good class, state taxation is very complex today and need to ensure we do it right.

4
Anonymous Author
Course was okay; not really one of my favorite topics, but definitely an important one.

5
Anonymous Author
great class, lots of good information. I have not taken a class on this topic before.

5
Anonymous Author
Great course. Thank you so much Vicki. Great content as always and well explained.

5
Anonymous Author
The course had a lot of useful information on a complex topic and was presented well.

5
Member's Profile
This webinar is a great informational lesson. Thank you for allowing me to view it.

5
Member's Profile
Multi State Employees are a challenge. This review covers many areas of compliance.

5
Member's Profile
Great info. Crazy how many taxes come in to play with multi state setups. Thanks!

5
Anonymous Author
Very informative coverage on a difficult topic. I learned a lot today. Thank you!

5
Member's Profile
I learned a lot from this course. It was very informative and taught me a lot.

4
Member's Profile
There's not a lot of info in this area so I'm glad this course was available!

5
Member's Profile
An excellent, detailed presentation of multistate tax laws and regulations.

5
Member's Profile
Thank you for the great power point. I will use this in my daily job.

4
Anonymous Author
The instructor was very well informed and clearly knows payroll taxes!

5
Anonymous Author
this webinar will help me determine multiple aspects of state taxation

5
Member's Profile
Very helpful for companies with employees working in multiple states.

5
Member's Profile
Vicki's courses are always extremely informative and well laid out.

5
Member's Profile
Thank you so much for this course. I enjoyed it and learned a lot.

5
Anonymous Author
Learned a lot about how payroll requirements differ between states

5
Member's Profile
This is my favorite instructor. She is funny and easy to follow.

5
Anonymous Author
Another great course on a topic I knew very little about. Thanks!

3
Anonymous Author
Good refresher course. I will used this in my work environment.

5
Member's Profile
It was a good course. Very simple to understand. Thank you!!!!!

5
Anonymous Author
Woah, I did not realize how complex payroll can be! Great info!

5
Member's Profile
This instructor is easy to listen to and explains things well.

5
Anonymous Author
Nice course. Materials are clear, concise and laid out well.

5
Anonymous Author
Great course, full of information for multi-state employers.

5
Anonymous Author
Great course love the maps and the real world examples.

5
Anonymous Author
Great course, lots of information, great instructor.

4
Anonymous Author
Great slides. Will keep them for future reference.

5
Member's Profile
good content, informative, insightful, good course

Prerequisites
Course Complexity: Advanced

No Advanced Preparation or Prerequisites are needed for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Multistate Employees4:48
  Are You an Employer? 26:34
  Reciprocal Agreements9:15
  The Forms9:50
  Taxable Wages10:10
  State Unemployment Insurance12:04
  Common Errors and Other Laws9:08
  Other Laws Cont'd11:20
  Garnishments6:42
Continuous Play
  How to Handle Multistate Employees Tax Withholding and Related Issues Correctly1:39:51
SUPPORTING MATERIALS
  Slides: How to Handle Multistate Employees Tax Withholding and Related Issues CorrectlyPDF
  How to Handle Multistate Employees Tax Withholding and Related Issues Correctly Glossary/ IndexPDF
REVIEW and TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam