Accounting, Payroll & Pension Issues/Payroll taxes in 2 States

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Expert: - 11/18/2008


Question
I am starting to do the payroll for a Florida based LLC. There are currently 6 employees, 2 including myself doing office work. 4 employees are basically repair & maintenance guys who will be working in both Florida & Alabama. They are residents of Florida.
Do I report income for each state or just Florida?
My other question is workmans comp insurance, is it needed for both states?
Thank you for your help.


Answer
You will have to pay both Florida and Alabama income taxes. The hours worked in Florida will be taxed in Florida and the hours worked in Alabama will be taxed in Alabama.

You have to have worker's compensation insurance in both states.

You also have to pay SUTA tax in both states for the amounts worked in each respective state.

When you do W-2 forms you have to list the Florida wages and income tax witholding on one line and on the next line the Alabama wages and income withholding.

The employees will have to file a resident form in Florida and a non resident form in Alabama.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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